Rappaport, Matthew E.
The taxation of staking and wrapping tokens taking the contrarian view / Matthew E. Rappaport
Resumen.
Incluye referencias bibliográficas.
Digital assets have become very popular in recent years, but an overloaded legislative branch and IRS have given taxpayers little guidance about how to treat interesting and unique transactions the world of Web3 has invented. The government has never commented directly on the tax treatment of block rewards in a proof-of-stake system; most practitioners seem to believe the block rewards are not taxable, as the taxpayer argues in the Jarrett case, but this article discusses why the taxpayer’s argument could fail. The government is similarly silent thus far about whether wrapping tokens would be treated as a sale or exchange under Section 1001; most practitioners seem to believe wrapping is not a sale or exchange, but this article discusses why wrapping could be treated as one.
ECONOMÍA DIGITAL
TOKENS
CONTRIBUYENTES
IMPUESTOS
AGENCIAS TRIBUTARIAS
ADMINISTRACION TRIBUTARIA
ESTADOS UNIDOS
Journal of Taxation of Investments 0747-9115v. 39, n. 3, Spring 2022, p. 3-16
The taxation of staking and wrapping tokens taking the contrarian view / Matthew E. Rappaport
Resumen.
Incluye referencias bibliográficas.
Digital assets have become very popular in recent years, but an overloaded legislative branch and IRS have given taxpayers little guidance about how to treat interesting and unique transactions the world of Web3 has invented. The government has never commented directly on the tax treatment of block rewards in a proof-of-stake system; most practitioners seem to believe the block rewards are not taxable, as the taxpayer argues in the Jarrett case, but this article discusses why the taxpayer’s argument could fail. The government is similarly silent thus far about whether wrapping tokens would be treated as a sale or exchange under Section 1001; most practitioners seem to believe wrapping is not a sale or exchange, but this article discusses why wrapping could be treated as one.
ECONOMÍA DIGITAL
TOKENS
CONTRIBUYENTES
IMPUESTOS
AGENCIAS TRIBUTARIAS
ADMINISTRACION TRIBUTARIA
ESTADOS UNIDOS
Journal of Taxation of Investments 0747-9115v. 39, n. 3, Spring 2022, p. 3-16