I just published A Stake to the Heart, an examination of the effect of taxes on PoS coins
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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?
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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.
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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.
Hm... but dividends or interest from deposits is also usually taxed, regardless of currency. Staking proceeds seem more similar to this than to cattle farming.
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The difference is that there is a counterparty to dividends and interest, though. Somebody gives you money. Nothing is created.
When staking there is something new created and credited to you. Furthermore, there is no counterparty.
I believe that POS staking revenues are 100% analogous to POW mining revenues. Thus, amount coins mined/staked per day X USD value on day of receipt = USD revenues. This is how I would report on a tax return.
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Calves are not fungible. There’s no national market that gives you a FMV for “a calf.” And since the IRS knows that calves eventually become cows and must go to market one way or another, it’s just more practical and fair to tax them at that point.
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Also, farmers are very good at lobbying.
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