I’m WendyO From The Street and I talk everything crypto every day. Also, are you on Roundtable? If not, you definitely should be! You can chat with me more over there!
Now, let’s talk about taxes. Some of you seem to think that not paying your crypto taxes is a good idea. Well, today I’m here to remind you that it’s not. In this video, I’ve invited my own personal CPA, Scott Martin, to explain why paying and properly filing your crypto taxes is absolutely essential if you’re in crypto.
Crypto can be a confusing space when it comes to taxes, but understanding the rules can save you a lot of trouble with the IRS. Scott joined me today to discuss how The United States Internal Revenue Service (or the IRS) has reaffirmed that crypto staking rewards are taxable as income upon receipt, countering a second legal challenge by Joshua and Jessica Jarrett. The couple argues that crypto staking rewards, like crops or manuscripts, should be treated as new property and taxed only upon their sale. Their legal dispute began back in 2021 over taxes on 8,876 Tezos (XTZ) tokens earned in 2019 and continues with a 2024 lawsuit seeking a $12,179 tax refund and an injunction against the IRS's current policy on crypto staking rewards The IRS, referencing its 2023 guidance, maintains that crypto staking rewards are taxable at their fair market value when the recipient has control to sell or exchange them. This case has been making headlines as it could set a major precedent for how staking rewards are taxed in the United States.
Go ahead and contact Scott Martin today if you’re looking for a knowledgeable tax and financial advisor! His website is shown in today’s video! (Make sure you watch until the end)