In most cases yes. On-chain claim events determine when the ordinary income is received. It’s good practice to only claim when you want to spend/sell them.
@TokenTax Question: when supplying liquidity to a protocol to earn a token as a reward, does the token only exist for tax purposes when claimed (transferred to your wallet)? If yes, the tax effective strategy is to only claim the rewards when you're ready to spend/convert them?
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If you want to hold the tokens and you think the price will go up, it’s beneficial to claim when the price is low which locks in lower taxable income.
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