Staking rewards taxation

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!

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If you need personal help, please use the links below to book consultation with David.


15 Minute Meeting - David Spencer

30 Minute Meeting - David Spencer

Important: Because of liability reasons, David cannot help with personal tax questions in the forum. If you need personal help - book consultation using the link above.

He may still be able to answer general questions.

We want to set the expectations straight for the forum section in this course and therefore we make it clear that you shouldn’t expect personal help here :pray:

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David doesnt monitor this thread, please use the thread linked below for general questions:

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Great question. Ask it in the other thread as Ivan suggested!