Crypto staking rewards and their unfair taxation in the US
The U.S. Internal Revenue Service appears to be blinded by its own enthusiasm on crypto taxation, instead creating an excessive financial burden. The United States Internal Revenue Service (IRS) stretches the tax rules to fit its cryptocurrency agenda. At no time in tax history has pure creation been a taxable event. Yet, the IRS seeks to tax new tokens as income at the time they are created. This is an infringement on traditional tax principles and problematic for several reasons.In 2014, the IRS stated in an FAQ within IRS Notice 2014-21 that mining activities would result in taxable....
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The US tax regulator, the Internal Revenue Service (IRS), has restated its stance on cryptocurrency staking, clarifying that rewards generated from staking activities are taxable as soon as they are received. The IRS added that staking rewards do not constitute new property, and are therefore subject to immediate taxation upon generation. IRS Confirms Crypto Staking […]
The Tezos validator who took the IRS to court argues that staking rewards should be treated as created property rather than income. A United States couple suing the federal tax agency over Tezos (XTZ) staking rewards taxation chose to forego a tactical victory and engage in a court battle that could eventually result in policy change.Joshua and Jessica Jarrett, who run a node on the Tezos network (thus “baking” new blocks, in the ecosystem’s lingo), have sued the Internal Revenue Service (IRS) over the taxes paid on the XTZ tokens created in 2019. The Jarretts filed a refund claim on....
Crypto staking rewards Thanks to its high yields, crypto staking, a way to earn passive income, has quickly become popular with crypto holders. Staking is a process in which nodes stake their tokens and create blocks to participate in the maintenance of the blockchain network. In addition, the rewards a node receives from the network […]
Ethereum staking is the backbone of the new network and users have been earning rewards by staking their ETH ahead of the merge. As time has gone on, rewards for staking have reduced, with the current rewards sitting around 4-5% for stakers. However, crypto exchange Coinbase sees this changing for the better once the merge […]
Users automatically receive rewards on some of their crypto positions. The eToro trading platform announced on Thursday the launch of a dedicated staking service for its clients, letting users earn staking rewards from Cardano (ADA) and Tron (TRX).Users who hold positions in either of these currencies will be eligible for staking rewards, awarded monthly. The company said that other assets will be introduced later on as well.The system is completely automated and does not require any action from the part of the users, who are able to trade the assets normally.An eToro spokesperson told....