Crypto Staking Rewards: New IRS Ruling Explained - Your Ultimate FAQ
Portfolio Pulse from Mehab Qureshi
The Internal Revenue Service (IRS) has issued a ruling that cryptocurrency staking rewards must be reported as gross income in the year they are received. This applies to individuals who receive cryptocurrencies as compensation for validating transactions on proof-of-stake blockchains like Ethereum and Solana. The ruling applies specifically to cash-method taxpayers who participate in staking activities. The fair market value of staking rewards should be determined at the time the assets are received.
August 01, 2023 | 9:18 am
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
The IRS ruling on crypto staking rewards as gross income could impact Ethereum as it uses a proof-of-stake blockchain. This could potentially affect the number of participants in staking activities.
The IRS ruling could potentially deter some participants from staking activities due to the tax implications. However, it's unclear how significant this impact will be on Ethereum's overall network participation and price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The IRS ruling on crypto staking rewards as gross income could impact Solana as it uses a proof-of-stake blockchain. This could potentially affect the number of participants in staking activities.
The IRS ruling could potentially deter some participants from staking activities due to the tax implications. However, it's unclear how significant this impact will be on Solana's overall network participation and price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75