tax

Many investors fail because they wait for the "perfect" moment to buy or sell. But history shows that being patient is much more rewarding than being fast.
Look at the price of $BNB on January 1st over the years:
2017: $0.15 (Pre-launch/ICO)2018: $8.502019: $6.202020: $13.702021: $37.402022: $511.902023: $246.302024: $311.602025: $605.202026 (Today): $857
If you tried to time the "top" in 2021, you might have panicked during the 2022 dip and sold everything. But those who stayed in the market are now seeing new highs.
Why #holding Long-Term is the Smartest Move:
#tax Benefits: In many countries, holding for more than a year significantly reduces your tax burden. Why give your gains away to the government when you can keep them?Less Stress: Market timing requires 24/7 attention. Long-term holding lets you live your life while your wealth grows in the background.Beating the Odds: Statistics show that most day traders lose money. Long-term holders, however, benefit from the overall growth of the crypto ecosystem.
I am building my wealth by focusing on the big picture, using strategies like Buy and Hold and #dca . I’m sharing my journey right here to help you do the same.
What is your #strategy ? Are you holding for 5+ years or looking for quick wins? Let's talk in the comments.
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@AZ Blockchain $BTC $ETH

✨Cuộc tranh luận tại Mỹ về việc đánh thuế staking crypto từ nước ngoài giống như một “phòng thí nghiệm chính sách” có thể tạo ra tiền lệ toàn cầu. Dù anh em không phải công dân Mỹ, tác động lan tỏa của các quyết định này là điều khó tránh khỏi.
✨Nếu IRS siết chặt quan điểm, các sàn giao dịch và giao thức staking có thể buộc phải điều chỉnh dịch vụ trên phạm vi toàn cầu. Điều này ảnh hưởng trực tiếp đến cách báo cáo thuế, phân phối phần thưởng staking, thậm chí là việc có còn cho phép người dùng quốc tế tham gia hay không.
✨Ngược lại, nếu Mỹ chọn cách tiếp cận linh hoạt hơn, thị trường có thể được tiếp thêm động lực. Staking xuyên biên giới sẽ dễ thở hơn, các sản phẩm mới có đất phát triển, và nhà đầu tư toàn cầu cũng tự tin tham gia hơn.
✨Chính sách thuế crypto của Mỹ thường định hình hành vi toàn thị trường. Dù không nộp thuế cho IRS, chúng ta vẫn bị ảnh hưởng gián tiếp qua thiết kế sản phẩm, quyền truy cập và lợi nhuận. Chiến lược hợp lý lúc này là cẩn trọng, đa dạng hóa nền tảng staking và theo dõi sát diễn biến từ Washington – vì chuyện ở đó hiếm khi chỉ dừng lại ở đó.
🛑 BÀI VIẾT KHÔNG PHẢI LỜI KHUYÊN ĐẦU TƯ, ANH EM THAM KHẢO VÀ LUÔN BÌNH AN TRONG THỊ TRƯỜNG. 😘
#CryptoPolicy #Staking #Tax #az_blockchain #uscryptostakingtaxreview

#USCryptoStakingTaxReview The IRS's July 2023 guidance underscores unique tax considerations for staking rewards, treating cryptocurrencies as property. As the IRS sharpens its focus on crypto transactions, U.S. stakers must understand current tax rules to ensure compliance and avoid legal issues - also see our complete US crypto tax guide. This article clarifies crypto staking taxation per IRS regulations, aiming to guide investors through this intricate area with confidence.
Understanding Staking Rewards as Income
IRS guidelines treat cryptocurrency staking rewards as income, reflecting the view of cryptocurrencies as property. Receiving staking rewards is seen as earning income from blockchain participation, taxable at the time of receipt, not sale.
Tax Implications When Rewards Are Received‍
Upon receipt, staking rewards are subject to income tax based on their fair market value in U.S. dollars at that time. Accurate record-keeping of the receipt date and value is essential for proper tax reporting as ordinary income.
Tax Implications When Rewards Are Sold‍
Selling staking rewards constitutes a taxable event, with capital gains tax due on any increase in value from the time of receipt. The length of time the rewards were held determines whether gains are short-term or long-term, affecting the tax rate.
In summary, both the receipt and sale of staking rewards come with distinct tax implications. Understanding and adhering to these guidelines is key to staying compliant with IRS rules and effectively managing your crypto taxation responsibilities. See below a screenshot of the Crypto Tax Tool Blockpit for automatic classification of staking rewards.
Staking Tax Example
Determining Fair Market Value (FMV)
When it comes to taxation of staking rewards in the U.S., accurately determining the FMV in U.S. dollars of these rewards at the time of receipt is essential.
There are several approaches to ascertain this:
Exchange Rates‍
If the cryptocurrency is traded on an exchange, the FMV can be established based on the going rate on the exchange at the time of receipt. It's important to use a consistent method for this valuation, especially if the reward is traded on multiple exchanges with varying rates.
Cryptocurrency Pricing Indexes
‍In some cases, taxpayers might use average rates from a recognized cryptocurrency pricing index to determine the FMV, especially if the staking reward is not listed on a major exchange.
Other Reasonable Methods
‍If neither of the above methods is feasible, the IRS allows for "any other method that provides a reasonable valuation under the circumstances."
Accurate and detailed record-keeping is here crucial for several reasons:
Tax Compliance
‍Proper documentation of the FMV of each staking reward at the time of receipt is necessary to comply with IRS regulations and to accurately report taxable income.
Capital Gains Calculation
‍These records are also vital when you sell the staked assets. To accurately calculate any capital gain or loss from the sale of staking rewards, you need to know the initial value when you received them.
Audit Preparedness
‍In case of an IRS audit, having detailed records with crypto portfolio trackers like Blockpit substantiates the valuations you've reported on your tax returns. By meticulously tracking the FMV of each staking reward on the day of receipt, you lay a strong foundation for compliant and stress-free crypto tax reporting
#tax #USCryptoProgress

In the U.S., the IRS currently treats crypto staking rewards as ordinary income at the time you gain "dominion and control" over the assets, such as when they become transferable or spendable. A separate capital gains tax applies when the rewards are later sold or otherwise disposed of.

Current Tax Rules
Income Recognition: You must report the fair market value (FMV) of the staking rewards in U.S. dollars at the precise date and time you receive control over them. This amount is subject to your standard income tax rate.
Double Taxation Argument: Lawmakers and industry experts have criticized this approach, arguing it results in "double taxation" (once on receipt as income, and again on disposal as a capital gain) and creates significant administrative burdens for taxpayers.
Capital Gains: When you eventually sell, trade, or spend your staked rewards, you will incur a capital gain or loss based on the difference between the FMV at the time you originally received them (your cost basis) and the price at disposal.
Reporting: Individual taxpayers typically report staking income on Form 1040, Schedule 1 as "Other Income". If you dispose of the assets, you report the details on Form 8949 and summarize on Schedule D. Businesses report on Schedule C, which allows for deducting related expenses.

Legislative and Legal Review
Lawmaker Push for Reform: A bipartisan group of U.S. House lawmakers recently urged the IRS to revise its guidance before the 2026 tax year. They propose taxing staking rewards only at the time of sale to align with actual economic gain and reduce administrative complexity.
Ongoing Court Case: The legal challenge in Jarrett v. United States is ongoing, with taxpayers arguing that newly created tokens are self-created property and should only be taxed upon sale, similar to how mined minerals or harvested crops are treated. The IRS previously issued a refund in the initial case to make it moot but the taxpayers filed a new lawsuit in October 2024 to seek a final judicial ruling on the matter.
New Reporting Forms: Starting in 2026, custodial platforms will be required to issue a new Form 1099-DA to report digital asset sales and income, including staking rewards, which will increase scrutiny on reporting.

For the most accurate and up-to-date information, taxpayers should consult with a qualified crypto tax professional or refer to official IRS guidance available on the IRS website.

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