What about cash back rewards, where you use a debit card and receive, say, 2% of the cash value of your purchase back in crypto? Fiat cash back rewards are not taxable as far as I know. But would it be for crypto, or could it be considered a purchase of crypto for the dollar value of what you would have gotten if they’d just given you dollars and then you bought crypto with it? If the latter, how would it be taxed when you sell it, and if the former, how do you report it?
I’ve heard that if you mint rewards that inflate the supply there’s no intrinsic gain. You’re just minting what are essentially stock splits based on the total supply of the token. A lot of what’s known as yield farming is also like this. When you mint liquidity rewards you just minted the inflation so it’s not a gain since you diluted yourself and all the others coins in the supply.
Since the cost basis of rewards are ZERO, then the entire amount when sold would be taxed as gains. When my rewards in my crypto reports were received, I had no cost basis reported, so I assume that value is ZERO.
Last time you guys talked about staking you said all staking was subject to SE tax. Now its only if you are running a node? So delegated staking would NOT be subject to SE tax?
If you do a "sacrafice" and get an airdrop of tokens that landed in your metamask before a value was set- wouldn't that then have no tax ramifications until they were sold? It was Pulse Chain and PulseX btw
Voyager rewards are NOT staking. Voyager is the one staking the coins. Voyager reports all of there staking income and pays tax on it. How can the government charge Voyager income tax for staking and then charge me income tax again on those exact same staking rewards? It’s so annoying when people assume voyager rewards are staking.
I’ve heard that if you mint rewards that inflate the supply there’s no intrinsic gain. You’re just minting what are essentially stock splits based on the total supply of the token. A lot of what’s known as yield farming is also like this. When you mint liquidity rewards you just minted the inflation so it’s not a gain since you diluted yourself and all the others coins in the supply
How about in an IRA ROTH LLC staking and compounding or in an LP - does the yield or APY a taxable income or does it grow tax free in the IRA ROTH LLC?
I have a ROTH Crypto IRA that you guys have under management and I have to use Gemini and there is options to earn yield but it states we have a restricted account- is that something that Directed IRA can change and allow us to gain yield like others offer?
If I bought crypto on robinhood and made a gain do I report that as a capital gain (I sold) or do I answer yes to virtual currency question. I ask this question cuz on Robinhood you don’t necessarily own the crypto you hold the value of crypto if that makes sense. If my question doesn’t make sense please reply so I can try to explain in another way.
It's been a while since a savings account made any interest but I never remember the IRS asking to report on those as gains. But staked tokens earning a % should not be a taxable event. They don't deserve a single dime from someone who is staking a digital token. They won't even write legislation about how these are securities or not, yet they just want people to fork over a big cut because they say so? Ugggh why do people put up with this.
What happens if your earn "rewards", and restake the proceeds and the platform does a rug pull and takes what you made? Still have to pay on what they stole?
If I buy digital software through a company and I want to help get myself tax credits even though I’m earning rewards daily what is the best way to go about making sure I get it up tax credits. Do I have to have a business or can I just use my own personal money and buy this digital software and still get tax credits
What about cash back rewards, where you use a debit card and receive, say, 2% of the cash value of your purchase back in crypto? Fiat cash back rewards are not taxable as far as I know. But would it be for crypto, or could it be considered a purchase of crypto for the dollar value of what you would have gotten if they’d just given you dollars and then you bought crypto with it? If the latter, how would it be taxed when you sell it, and if the former, how do you report it?
There was a lawsuit on rewards and IRS says you are not taxed until one sells those rewards
Hmmm. According to Coinbase, rewards are taxable as other income.
I’ve heard that if you mint rewards that inflate the supply there’s no intrinsic gain. You’re just minting what are essentially stock splits based on the total supply of the token. A lot of what’s known as yield farming is also like this. When you mint liquidity rewards you just minted the inflation so it’s not a gain since you diluted yourself and all the others coins in the supply.
Any links to support this?
Yes, Tezos
@@BillBlackfund4u It's ongoing. Tezos.
Since the cost basis of rewards are ZERO, then the entire amount when sold would be taxed as gains. When my rewards in my crypto reports were received, I had no cost basis reported, so I assume that value is ZERO.
Am I correct in saying that crypto rewards, in kind, is the only “asset” that is taxed upon discovery/receipt?
To my knowledge you would not pay taxes on these rewards until you report them with your tax return.
How are rewards paid in bitcoin or other crypto treated in a crypto credit card?
Last time you guys talked about staking you said all staking was subject to SE tax. Now its only if you are running a node? So delegated staking would NOT be subject to SE tax?
If you do a "sacrafice" and get an airdrop of tokens that landed in your metamask before a value was set- wouldn't that then have no tax ramifications until they were sold?
It was Pulse Chain and PulseX btw
The entity, Voyager, may receive their income as staking rewards but they are giving it to users as “interest” or “payments”.
Voyager rewards are NOT staking. Voyager is the one staking the coins. Voyager reports all of there staking income and pays tax on it. How can the government charge Voyager income tax for staking and then charge me income tax again on those exact same staking rewards? It’s so annoying when people assume voyager rewards are staking.
People pay taxes on crypto?
I’ve heard that if you mint rewards that inflate the supply there’s no intrinsic gain. You’re just minting what are essentially stock splits based on the total supply of the token. A lot of what’s known as yield farming is also like this. When you mint liquidity rewards you just minted the inflation so it’s not a gain since you diluted yourself and all the others coins in the supply
Great summary - appreciated!
Thanks for this info.
How about in an IRA ROTH LLC staking and compounding or in an LP - does the yield or APY a taxable income or does it grow tax free in the IRA ROTH LLC?
I have a ROTH Crypto IRA that you guys have under management and I have to use Gemini and there is options to earn yield but it states we have a restricted account- is that something that Directed IRA can change and allow us to gain yield like others offer?
If I bought crypto on robinhood and made a gain do I report that as a capital gain (I sold) or do I answer yes to virtual currency question. I ask this question cuz on Robinhood you don’t necessarily own the crypto you hold the value of crypto if that makes sense. If my question doesn’t make sense please reply so I can try to explain in another way.
Can an LLC/S-Corp write off this crypto tax conference somehow? I would love to come to it!
It's been a while since a savings account made any interest but I never remember the IRS asking to report on those as gains. But staked tokens earning a % should not be a taxable event. They don't deserve a single dime from someone who is staking a digital token. They won't even write legislation about how these are securities or not, yet they just want people to fork over a big cut because they say so? Ugggh why do people put up with this.
You should always report your interest from savings/checking/CD accounts
What happens if your earn "rewards", and restake the proceeds and the platform does a rug pull and takes what you made? Still have to pay on what they stole?
If I buy digital software through a company and I want to help get myself tax credits even though I’m earning rewards daily what is the best way to go about making sure I get it up tax credits. Do I have to have a business or can I just use my own personal money and buy this digital software and still get tax credits
To get your question answered, please submit it to podcast.mainstreetbusiness.com/ - thank you!
Georgiacox VlA Te le gr am.........📧
I never doubted trading with Georgia after seeing her (Proof of Trades) I made good profit last year, I hope to make more
Georgia Cox daily signals has been so profitable. i am also looking forward to another successful month again
Outstanding is the word Her knowledge and expertise as a trader is really extraordinary.
wow