Bitcoin and Crypto Talk (Merged)(includes NFT)

superchuck500 said
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.

I've been reporting income for my Tezo's & Algorand the last couple years. I recall Tezo's being litigated by some who have much more at stake than I. Current guidance is that staked coin rewards are considered income. Defendants are arguing they are more like grown crops where there is only property until sold and therefore it shouldn't be taxed.

Looks like the IRS has waffled a bit now...

https://www.coindesk.com/policy/202...-on-rewards-tax-in-break-from-current-policy/