Fun

News Feed - 2023-08-01 12:08:00

Martin Young5 hours agoCrypto staking rewards are taxable once received: IRSThe United States tax collector will require taxpayers to count staking rewards as gross income at the time they gain “dominion" over the tokens.2657 Total views16 Total sharesListen to article 0:00NewsJoin us on social networksUnited States crypto investors must report crypto staking rewards as gross income in the year it was received, according to a new ruling from the country’s top tax authority.


On July 31, the Internal Revenue Service issued Revenue Ruling 2023-14, giving clarification about how income earned from staking digital assets should be treated for taxation purposes.Excerpt from Rev. Rul. 2023-14. Source: IRS


Gross income includes income realized in any form, whether in money, property, services and now staking rewards.


The ruling applies to cash-method taxpayers who receive any crypto as remuneration for validating transactions on proof-of-stake blockchains and applies both when staking cryptocurrency directly and when staking through a centralized crypto exchange.


The ruling stated that the fair market value of the crypto rewards should be included in annual income and determined when the assets are received.“The fair market value is determined as of the date and time the taxpayer gains dominion and control over the validation rewards."


“Dominion” was defined as the time when the investor controls and has the ability to sell, exchange, or otherwise dispose of the cryptocurrency rewards.


The IRS previously subjected crypto-mining rewards to both income and capital gains tax but had no provisions for staking rewards up until now, according to crypto tax firm Koinly.


Head of tax at Koinly, Danny Talwar, elaborated to Cointelegraph:“The revenue ruling compounds the understanding of many accounting professionals in that staking rewards are only taxed as gross income when they are able to be sold. This means in that rewards accrued but locked won’t be taxable until the recipient can exercise ‘dominion and control’ over their staking rewards.”


Messari founder Ryan Selkis said the IRS is treating crypto staking like stock dividends.What PoS blockchains do at scale is embed state-level taxes into their protocols.

The IRS says PoS rewards should be included in gross income, which means crypto has taken the concept of a "stock dividend" and made it taxable.

You get a taxed for slicing a pizza in 10 vs. 8. pic.twitter.com/3qlm6lAGQv— Ryan Selkis (@twobitidiot) July 31, 2023


Meanwhile, Jason Schwartz, tax partner and digital assets co-head at Fried Frank, said: “While the ruling is therefore unsurprising, it’s still disappointing,” adding:“Tax law has always required the existence of a payer, such as an employer or other counterparty, for taxable income to accrue to someone. Even treasure trove discoveries are deferred payments.”


Related:Judge suggests IRS issued $4K refund over tax lawsuit based on quality of lawyers


The IRS tax bulletin comes at a time when U.S. federal regulators such as the Securities and Exchange Commission are targeting crypto-staking service providers and exchanges, alleging that they are offering illegal securities sales.


Magazine:Best and worst countries for crypto taxes – plus crypto tax tips# IRS# Taxes# Proof-of-Stake# Staking# RegulationAdd reactionAdd reactionRelated NewsHow to use index funds and ETFs for passive crypto incomeGerman political parties split on how to regulate increasing AI adoptionEthereum is about to get crushed by liquid staking tokensBill to exempt foreigners from crypto taxes passes preliminary reading in IsraelUS Senate Finance Committee asks digital asset community how to tax it in open letterIRS investigating crypto traders using Puerto Rico tax breaks: Report

News Feed

Marcel Pechman7 hours agoBitcoin investor sentiment slumps to a new low, even as macro and equities show improvementThree key Bitcoin price indicators explain why the BTC price continues to fall toward new lows.1964 Tota
Derek Andersen2 hours agoAbu Dhabi Global Market introduces comprehensive DLT Foundations RegulationsThe ADGM’s new regulatory framework is the first of its kind in the world, it says. The free financial zone is alread
Ebay CEO Talks NFTs and Crypto, Exec Says Company Continues to ‘Evaluate Other Forms of Payments’
Ebay CEO Talks NFTs and Crypto, Exec Says Company Continues to "Evaluate Other Forms of Payments" The president and chief executive officer of Ebay, Jamie Iannone, discussed the po
Crypto Biz: US dollar exposure via digital assets takes off
Ana Paula Pereira3 hours agoCrypto Biz: US dollar exposure via digital assets takes offThis week’s Crypto Biz explores Hashdex filing for a combined spot Bitcoin and Ether ETF, Coinbase’s pre-launch market, Ripple’
Arkansas house passes bills restricting crypto mining
Amaka Nwaokocha3 minutes agoArkansas house passes bills restricting crypto miningMuch of the debate surrounds whether Act 851 should be changed and how specific those changes should be.20 Total viewsListen to article 0:0
Bitcoin Breaks Past $67,000 After Spot ETFs See Highest Capital Inflows In Months
Este artículo también está disponible en español. As the broader crypto market starts to rebound, Bitcoin is once more in the forefront and crosses the $67,000 barrier. B
Study: 10% Growth in Crypto Market Cap Reduces Value of African Firms by 0.76%
Study: 10% Growth in Crypto Market Cap Reduces Value of African Firms by 0.76% A study undertaken by two assistant professors at American University in Cairo (AUC) has suggested th
Helen Partz2 hours agoTrezor releases new hardware wallet and metal private key backupTrezor is celebrating its 10th anniversary by releasing three new self-custody products, with a focus on providing entry-level devices
Is Dogecoin copying the 2020 fractal that sent DOGE price soaring 15,800%?
Yashu Gola8 hours agoIs Dogecoin copying the 2020 fractal that sent DOGE price soaring 15,800%?DOGE"s bullish fractal also gains support from expectations of interest rate cuts, the upcoming Bitcoin halving, and Elon Mus
‘I’ve moved on to other things’ — Satoshi Nakamoto’s final email revisited after 13 years
Ana Paula Pereira3 hours ago‘I’ve moved on to other things’ — Satoshi Nakamoto’s final email revisited after 13 yearsIn the last known communication in 2011, Satoshi Nakamoto disclosed they had moved on to othe
The Big Three Credit Agencies Critique El Salvador’s Bitcoin Adoption — S&P Global Warns of ‘Immediate Negative Implications’
The Big Three Credit Agencies Critique El Salvador’s Bitcoin Adoption — S&P Global Warns of "Immediate Negative Implications" All of the ‘Big Three’ credit agenci
Ezra Reguerra30 minutes agoMantle pauses token migration to stop FTX from converting $43M in BIT tokens to MNTA community member has argued that FTX"s BIT tokens should not be automatically converted because of disqualif