Part-Time Chad
Diamond
- Joined
- Jan 5, 2022
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"The IRS just published new guidance regarding the treatment of cryptocurrency staking rewards. In Revenue Ruling 2023-14, the IRS has ruled that staking rewards must be included in gross income for the taxable year in which the taxpayer acquires dominion and control of the awarded cryptocurrency."
In other words, the IRS will now get to tax unrealized cryptocurrency gains acquired from staking.... because they said so. Shocker that they "ruled" in their own best interest. I didn't see that one coming!
How the hell is this arbitrary and capricious "ruling" even legal, and why isn't it being automatically challenged in court?
When we receive cryptocurrency from staking, we are not converting it into fiat currency (cashing out). Therefore, it is unrealized income. But, according to the creeps at the IRS, they have the right to tax it when we merely receive it, and then tax it again when we cash it out into fiat. Nice double taxation sleight of hand.
Am I missing something here? Please enlighten me if I am (and for the love of everything that's good, please make sense).
Oh, and this reminds me of another cynical and perverse IRS rule, that allows them to tax stock dividends and bond interest.
If a company is rewarding us with shares (property, NOT cash) of stocks or bonds, which we reinvest, without cashing them them out, why the hell does the IRS have a right to tax us on those shares (and then tax us again when we cash them out)??
These self-serving IRS rulings are so cynical and perverse. It's sicking that they consistently get away with it. This predatory agency is treated as if they're beyond reproach, like Louis XIV, the "sun" king, who was appointed by God himself.
If there ever is the political will for IRS reform, selfish rules, like these, should be the first to go.
In other words, the IRS will now get to tax unrealized cryptocurrency gains acquired from staking.... because they said so. Shocker that they "ruled" in their own best interest. I didn't see that one coming!
How the hell is this arbitrary and capricious "ruling" even legal, and why isn't it being automatically challenged in court?
When we receive cryptocurrency from staking, we are not converting it into fiat currency (cashing out). Therefore, it is unrealized income. But, according to the creeps at the IRS, they have the right to tax it when we merely receive it, and then tax it again when we cash it out into fiat. Nice double taxation sleight of hand.
Am I missing something here? Please enlighten me if I am (and for the love of everything that's good, please make sense).
Oh, and this reminds me of another cynical and perverse IRS rule, that allows them to tax stock dividends and bond interest.
If a company is rewarding us with shares (property, NOT cash) of stocks or bonds, which we reinvest, without cashing them them out, why the hell does the IRS have a right to tax us on those shares (and then tax us again when we cash them out)??
These self-serving IRS rulings are so cynical and perverse. It's sicking that they consistently get away with it. This predatory agency is treated as if they're beyond reproach, like Louis XIV, the "sun" king, who was appointed by God himself.
If there ever is the political will for IRS reform, selfish rules, like these, should be the first to go.
