We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Character of Staking Rewards: Interest, Rent, Royalties, or a Hidden Partnership?
- Authors
Foreman, Matthew E.; Kabel, Michelle S.
- Abstract
On July 31, 2023, the Internal Revenue Service (IRS) published Revenue Ruling 2023-14, regarding the tax treatment for cashmethod taxpayers that receive validation rewards in proof-of-stake transactions. The IRS confirmed its long-held position that validation rewards from a proof-of-stake consensus protocol are treated as gross income for cash-method taxpayers pursuant to Internal Revenue Code Section 61(a) when the taxpayer gains dominion and control over the validation rewards. This article considers what the character of that income should be.
- Subjects
UNITED States. Internal Revenue Service; INTERNAL revenue law; REVENUE rulings; GROSS income
- Publication
Journal of Taxation of Investments, 2023, Vol 41, Issue 1, p57
- ISSN
0747-9115
- Publication type
Article