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PARAGRAPHA cryptocurrency investor given rewards for validation activity on a proof-of-stake network should count the rewards as income in the year the investor gets control of those tokens, according to a ruling issued Monday by the Internal Revenue Service IRS.
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How To Avoid Crypto Taxes: Cashing outFor the avoidance of any remaining doubt, the Ruling makes clear that crypto investors who are earning staking rewards are required to report these earnings as. The Revenue Ruling holds that the two units of cryptocurrency received through staking constitute income for US federal income tax purposes in. According to the new IRS ruling, staking rewards are taxed at the time you gain dominion and control over a token. In simple terms, when you.