Taxes on Staking with the Eth Shanghi Update

https://www.reddit.com/r/ethtrader/comments/12jugyg/taxes_on_staking_with_the_eth_shanghi_update/

The ETH Shanghi update is happening today! Just a few reminders…

Staking rewards are taxable income and need to be reported at fair market value upon receipt. Reporting rewards while still locked has benefits such as potentially lower tax rates for long-term gains.

Those using Coinbase should be aware of a possible tax mistake. When you stake ETH on Coinbase, your rewards are reported on Form 1099-MISC, which is issued annually by Coinbase. This indicates that your rewards were reported to the IRS as taxable income at the time they were earned, even if they were locked up. When you provide ETH to Coinbase for staking, they “convert” it to ETH2 and classify it as a taxable event. When Coinbase distributes staking rewards to users after the Shanghai upgrade, they might “convert”and label this as a taxable event.

If you have any questions, make sure to reach out to a tax professional!

Disclaimer: The information provided pertains to the United States. Information contained in this post and in the comments is intended for general informational and educational purposes and does not constitute legal advice. Reading this post, reading the comments, receiving a reply to your comment, or sending a direct message to this account does not create an attorney-client relationship. Contact an attorney for legal advice regarding your specific situation.

submitted by /u/Gordon_Law
[link][comments]

I’m a Crypto Tax Attorney. AMA April 11th @ 9am CDT!

https://www.reddit.com/r/ethtrader/comments/12hxmhg/im_a_crypto_tax_attorney_ama_april_11th_9am_cdt/

Hi r/ethtrader, I’m Andrew Gordon, a tax attorney & CPA who’s been practicing cryptocurrency tax law since 2014. I help investors with their tax returns, audit representation, and tax debt resolution, as well as helping businesses adopt and report crypto. 

When it comes to crypto taxes and the IRS, things get really complicated. That’s why I’m here. Ask me anything about cryptocurrency tax law in the United States!

https://preview.redd.it/34sinjsio4ta1.jpg?width=6000&format=pjpg&auto=webp&v=enabled&s=5c799f0ac39d539fd82ce26819443ba769e82d94

Disclaimer: The information provided pertains to the United States. Information contained in this post and in the comments is intended for general informational and educational purposes and does not constitute legal advice. Reading this post, reading the comments, receiving a reply to your comment, or sending a direct message to this account does not create an attorney-client relationship. Contact an attorney for legal advice regarding your specific situation.

submitted by /u/Gordon_Law
[link][comments]