Good morning Friends! Thanks for checking out this Quick tax update. Although not noted in the video staking income is not subject to Self-employment taxes but is considered "Other Income"
Ok, just for clarification, if one earns extra rewards , or yield however you want to refer to it, once its awarded to you it becomes taxable as other income automatically? What about this scenario, you earn extra income from staking- what if you wanted to restake those rewards, or you want to cash it out so in the case of HEX token you stake ends, you receive extra reward from the stake. That reward is taxed, then you want to cash out to bank which would require swapping hex into either a stable coin or a coin that you can sell on a centralized exchange. Please correct me where Im wrong, so the swap is a taxable event, and then you need to send to centralized exchange ( that send is taxable event?) finally you sell coin into us dollars and that sell is a taxable event also? Im either missing something or people are going to be taxed multiple times on the same money.
Good morning Friends! Thanks for checking out this Quick tax update. Although not noted in the video staking income is not subject to Self-employment taxes but is considered "Other Income"
Ok, just for clarification, if one earns extra rewards , or yield however you want to refer to it, once its awarded to you it becomes taxable as other income automatically? What about this scenario, you earn extra income from staking- what if you wanted to restake those rewards, or you want to cash it out so in the case of HEX token you stake ends, you receive extra reward from the stake. That reward is taxed, then you want to cash out to bank which would require swapping hex into either a stable coin or a coin that you can sell on a centralized exchange. Please correct me where Im wrong, so the swap is a taxable event, and then you need to send to centralized exchange ( that send is taxable event?) finally you sell coin into us dollars and that sell is a taxable event also? Im either missing something or people are going to be taxed multiple times on the same money.
Welp, guess it’s time to start learning more about crypto 😆
Have you heard of Gamefi and do you have any info on the taxation of income from playing the game?
Hi Jeffrey I have not heard of Gamefi. How does it work?
I have a friend who “plays” it and she states that she earns money playing. Other than that I know nothing about the App or whatever it is.
Interesting if she is earning money I imagine that company will be issuing a 1099 of some type to her at some point next year.
So your saying they are taxing unrealized staking rewards?
That is correct. Basically once you have the ability to sell them it becomes taxable.
Seems to me once you can spend it then it is actually realized gain like dividends
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