#USCryptoStakingTaxReview 🇺🇸 US Staking Tax Review 2025: End-of-Year Update 🛡️
As we wrap up 2025, the IRS has made it clear: staking rewards are not "free" money in the eyes of the taxman! 🏛️ If you’ve been locking up your tokens to secure a network, here is exactly what you need to know to stay compliant before the year ends:
The "Income" Rule: Every time you receive a staking reward, it’s treated as Ordinary Income at its Fair Market Value (FMV) the moment you gain "dominion and control" over it. 💸 Whether you sell it or not, it counts toward your total income for the year.
The "Double" Tax: If you later sell those rewards at a higher price, you'll also owe Capital Gains Tax on the profit. 📈 (Pro tip: Hold for 12+ months to qualify for lower long-term rates!)
New 2025 Safe Harbor: A big win this year! The IRS recently released Rev. Proc. 2025-31, allowing certain investment trusts to stake without losing their tax status—paving the way for more "staking-ready" ETFs and institutional products. 🏦
Reporting Alert: Starting Jan 1, 2025, the IRS is tightening up with Form 1099-DA, so expect more reporting from exchanges and brokers. 📝
💡 Quick Poll: Are you tracking your rewards manually, or using tax software? Let me know in the comments! 👇
🛠️ Pro-Checklist for 2025 Filing Activity Tax Type Action Required
Receiving Rewards Ordinary Income Record FMV on receipt date 📅
Selling Rewards Capital Gains Track your cost basis vs. sale price 📊
Transferring to Cold Storage Non-Taxable Keep records of the transfer fees ❄️Stay ahead of the curve! 🚀
#StakingRewards #IRS #Ethereum #Solana $ETH
