Hello!
After watching the course, i have some specific questions regarding staking rewards.
Do I need to report unclaimed staking profits? I.e. I have some tokens staked, and I can claim the
staking rewards at any time. and I am the only one who can claim these profits. do I need to report them as they accrue? or only when I claim them to my wallet?
My thinking is that even though the rewards are not in my wallet, they are effectively mine. So i wasn’t sure how would the IRS treat that.
You mentioned that we need to report staking profits as interest.
Let’s say I have some token TKN from staking profits. I assume I need to report it’s USD value as interest.
a few questions here:
- When should the USD value be determined? (when I claim it? In the end of year?)
- What happens if the next year that TKN drops in value? do I get a refund? how do I report that?
- Assuming I don’t get a refund if TKN drops, I may want to hedge against that by selling TKN in the USD amount I owe in taxes.
when I do that, is this needs to be reported for capital gains? - How do I determine the USD value that TKN? I’m asking as some of my tokens are low-caps, that are traded against ETH.
can I just take the ETH USD value at the time of the transaction from etherscan?
Thank you very much!
