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Joined 1 year ago
Cake day: October 20th, 2023
  • BBQ-Batman@alien.topBtoSolana•What happens with taxes if I stake my SOL?English
    1·
    1 year ago

    My understanding is you (potentially) pay tax twice.

    1. The $SOL earned through staking is taxed as regular income. This is the first taxable event.

    2. Once you sell the $SOL, you then would pay short or long term capital gains tax on any profits. This is the second taxable event.

    Conversely, if you sold at a loss you could write it off on your tax return ( up to $3k a year ).

    Not an expert though so I’d also like advice if I’m mistaken.