Bitcoin and Crypto Talk (Merged)(includes NFT)

Tapxe said
I'm kind of happy about it. My main concern was that the coin would go over valued at launch, the inflated amount would drop in acct, and then sell pressure would drive it back down. Could have gotten dicey with taxes for some folks.

I still expect the coin to rocket up until the merge and drop a good bit after. It is being likened to a halving in BTC parlance so it should hold value, but seeing it go back close to ATH or more and then drop back several thousand wouldn't surprise me at all. It'll be nice to not have too much locked ETH2 where that would be a huge impact.

I hadn’t thought about the tax issue, it’s interesting.

Typically earned interest is ordinary income on a 1099-INT, with tax due as it is earned. But here it isn’t a cash interest payment, it’s paid as fractional coin. And it appears that we still can’t sell the ETH2.

So I would think it’s the same as a dividend where tax isn’t owed until the shares are sold - and treated as a capital gain rather than income even though it’s interest.