12 hours ago
U.S. IRS Declares Cryptocurrency Staking Income as Taxable The U.S. Internal Revenue Service (IRS) has officially clarified that income earned through cryptocurrency staking is subject to taxation , according to a report from Watcher Guru. This announcement highlights the growing attention regulators are placing on digital assets and their associated activities. Key Points: What is Cryptocurrency Staking? Staking involves locking up cryptocurrency in a blockchain network to support its operations, such as validating transactions. In return, participants earn rewards in the form of additional cryptocurrency. Taxable Events in Staking: The IRS classifies staking rewards as ordinary income at the time they are received. The value of the staking rewards must be reported in U.S. dollars , calculated based on the fair market value at the time of receipt. This applies regardless of whether the staking rewards are immediately withdrawn or left in the wallet. Impact on Taxpayers: Staking participants are required to include their staking rewards in their gross income during the taxable year they were earned. In addition to income tax, taxpayers may also owe capital gains taxes if they sell or exchange the staked cryptocurrency for a profit at a later date. IRS Guidance and Enforcement: The IRS has been increasing its efforts to regulate and enforce cryptocurrency-related tax compliance. It previously issued guidance for crypto mining and trading activities and now extends its focus to staking. Non-compliance could result in penalties or audits. Implications for Staking Participants: Record-Keeping : Stakers must maintain detailed records of their staking rewards, including the date received and the fair market value at the time of receipt. Tax Planning : Investors should consider the tax implications of staking when determining their overall crypto investment strategies. Potential Complexity : Taxation on staking rewards may add complexity for individuals unfamiliar with crypto tax laws, necessitating professional tax advice. Conclusion: The IRS’s stance on staking highlights the importance of compliance for cryptocurrency investors. As the digital asset space continues to grow, regulators are expected to provide further clarity and guidelines on other crypto-related activities. Investors engaging in staking must ensure proper documentation and timely reporting to avoid potential legal issues. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Analyst Forecast ‘Highly Bullish’ 2025 For Ethereum: Is The Bleeding Over?
Ethereum (ETH) has started to climb some levels after it fell to the $3,100 support zone last week. The second-largest cryptocurrency is attempting to break from its downtrend, with some market watchers suggesting it is poised for a massive run in 2025. Related Reading: Is Altcoin Season Here Already? VanEck Answers As Bitcoin Price Struggles Below $100,000 Ethereum Key Levels To Reclaim With only a week left in 2024, several market watchers have started forecasting the crypto market’s potential performance for next year. Despite the recent pullbacks, several analysts have predicted a remarkable performance for Ethereum in 2025. The King of Altcoins has struggled to turn the $4,000 level into support. After breaking past this level earlier this month, ETH has been rejected from this price range three times. Its latest attempt occurred a week ago when Ethereum soared to $4,100 before retracing 7.3%. As Bitcoin (BTC) fell to $92,000, the second-largest crypto continued its freefall to the $3,100 support zone, reaching its lowest price in a month. Since then, Ethereum has hovered between $3,200 and $3,550 but failed to break past the price range’s higher zone for the past four days. However, the cryptocurrency has broken out of its downtrend line and is attempting to reclaim the $3,500 support. A crypto analyst noted that ETH appears to have broken and retested its one-week downtrend after reclaiming the $3,400 support. According to the post, a “clean breakout” of this downtrend could lead the cryptocurrency to a retest of higher levels. Ali Martinez highlighted that ETH’s next big support zone was between the $3,032 and $3,132 price range, with 4.85 million ETH bought by 3.69 million addresses. Meanwhile, Ethereum’s next big resistance wall is between $3,640 and $3,740, where over 2 million addresses bought around 4.3 million ETH. To Martinez, “a sustained close outside this no-trade zone will determine the direction of ETH’s trend.” Will ETH Follow 2021’s Performance? Analyst Ted Pillows pointed out that “the first four months after U.S. elections are often highly bullish for ETH.” Per the chart, Ethereum registered massive gains in the first third of the year after the 2016 and 2020 US elections. In 2017, Ethereum started the year with a 31.92% increase in the first month, while it recorded a 78.51% surge in January 2021. In both years, ETH hit its peak monthly performances between March and April, seeing 214% and 44% returns in 2017 and 2021, respectively. If Ethereum repeats this historical performance, its price could surge above its all-time high (ATH) of $4,878 in January and continue to climb during the rest of Q1. Crypto trader Immortal noted that Ethereum’s recent performance resembles its 2020-2021 price action. According to the chart, ETH saw a significant rise in early 2021 before consolidating in its new range. This was followed by a breakout and a massive drop to retest consolidation zone. Related Reading: Solana Recovery Momentum Set The Stage For $194 Resistance Breakout However, when ETH reclaimed its breakout levels in 2021, the cryptocurrency continued rallying toward its previous ATH of $4,300, eventually hitting its current ATH at the end of the year. The trader notes that ETH is retesting the consolidation range after last week’s dip, which signals that the cryptocurrency could soar in the coming weeks if it follows a similar path. As of this writing, Ethereum is trading at $3,501, a 6.3% increase in the last 24 hours. Featured Image from Unsplash.com, Chart from TradingView.com Bitcoin World
Analysts Praise CRV Token for Significant Growth Potential
CRV token shows considerable potential for price appreciation according to analysts. Its unique tokenomics contribute to stabilization and long-term investment appeal. Continue Reading: Analysts Praise CRV Token for Significant Growth Potential The post Analysts Praise CRV Token for Significant Growth Potential appeared first on COINTURK NEWS . Bitcoin World
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