I just published A Stake to the Heart, an examination of the effect of taxes on PoS coins
Conversation
Replying to
Are you doing work if you've delegated your staking? Maybe it's like an apple tree in your back yard and the apples aren't taxable until they're spent. Are you taxed for a new calf when the mama cow you've been pampering has a baby?
Replying to
I would assume that if PoW mining income is taxable when received, whether via owned hardware or cloud mining contract, then PoS income would be treated similarly.
1
7
Key difference is PoS new coins being the product/output of old coins whereas with PoW, no coins are needed. It’s like cows that make more cows vs mining for gold.
5
10
Show replies
I think PoS coins would be a capital asset. So the price initially paid for the coins would be your basis and then the staking reward wouldn’t be taxed as income, but instead just affect the ultimate capital gains tax when they are all sold (or adjmnts 2 basis if partially sold)
1