IRS: Crypto Staking Rewards Taxable Once Investor Gets Hands on Tokens.
The latest tax guidance from the Internal Revenue Service outlines how and when staking rewards are taxed,
A cryptocurrency investor given rewards for validation activity on a proof-of-stake network should count the rewards as income in the year the investor gets control of those tokens, according to a ruling issued Monday by the Internal Revenue Service (IRS).
“The fair market value of the validation rewards received is included in the taxpayer’s gross income in the taxable year in which the taxpayer gains dominion and control over the validation rewards,” according to the legal analysis, which says that value should be figured as of the moment the U.S. taxpayer gains control of the tokens. Click on link above for the entire story.