US House Crypto Tax Bill Leaves Out Mining and Staking Reward Deferral
(17 days ago) · 1 source · Summarized by CryptoBipto
A crypto-related tax package advancing through the US House of Representatives does not include provisions that would allow miners and stakers to defer taxes on rewards until they are sold. The omission means that, under current rules, mining and staking rewards would continue to be treated as taxable income at the time they are received. Advocates for the crypto industry had pushed for deferral provisions to be included in the legislation.
WHY IT MATTERS
If you earn crypto by mining (using computers to process transactions) or staking (locking up your crypto to help secure a network), the US government currently treats those rewards as income the moment you receive them — similar to how a paycheck is taxed when you get it, not when you spend it. Some people in the crypto industry wanted a new rule that would let them wait to pay taxes until they actually sell those rewards for cash. Think of it like growing tomatoes in your garden: under current rules, you owe taxes on the tomatoes as soon as you pick them, even if you never sell them and they rot. The proposed deferral would have let you wait until you sold the tomatoes at a farmers market. The new House tax bill does not include this change, so the existing rules remain in place for now.
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- cointelegraph.com
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