DAWOOD SIDDIQ

#USCryptoStakingTaxReview Stop the Double Tax on Staking! Big News for U.S. Crypto [USCryptoStakingTaxReview] A critical bipartisan push in Congress is aiming to fix a major headache for crypto stakers: the double taxation problem. 🔍 The Current Pain Point: Why It's Unfair Right now, the IRS treats your staking rewards as taxable income the moment you receive them. Here’s the unfair part: you also get taxed a second time as capital gains when you later sell them. This means you can face a huge tax bill even if the price of your rewards plummets before you ever sell or use them. The Proposed Solution: Simple & Fair A group of 18 U.S. Representatives is demanding the IRS change this rule before 2026. Their solution is straightforward and mirrors how other investments are taxed: · Only tax staking rewards when you sell them. · You would only pay tax on your actual profit (the sale price minus your cost basis), not on paper gains. 🏛️ The Bigger Picture: U.S. Competitiveness This isn't just about saving money on taxes. Lawmakers argue that the current rule: · Creates a tracking nightmare for stakers. · Harms network security by discouraging participation in staking. · Puts the U.S. at a disadvantage in the global digital asset landscape. ⚠️ Important Reminder: Current Rules Still Apply Until an official change is made, the old rule is still the law. You must report your staking rewards as income in the year you receive them. Meticulous record-keeping is essential—track the date and USD value of every reward to establish your cost basis for the future sale. 🚀 What to Do & Watch For: 1. Keep perfect records of all your staking activity. 2. Stay informed on updates from the IRS and Congress regarding this proposal. 3. Understand that change is being seriously pushed at the highest levels. Conclusion The effort to end the double tax on crypto staking is gaining real political momentum. If successful, it would create a fairer, simpler system that encourages innovation and participation. While you must follow the current rules for now.