Garrett L. Brodeur was quoted in an August 18th, 2023 article published in Bloomberg Tax’s Daily Tax Report titled “Crypto Tax Guidance Confusion Heralds Court Battles to Come.” Guidance from the IRS released in July states cryptocurrency tokens created through staking must be reported as income. While the released IRS guidance was not unexpected, it is poised to spark legal battles over proper categorization of crypto rewards. The guidance also doesn’t address rewards generated through transaction (or “gas”) fees, or the new and changing ways investors are staking cryptocurrencies, such as through liquidity pools or delegated staking.
The article notes:
“In many ways I think the revenue ruling is very clear: Newly created tokens are income,” said, Garrett Brodeur, an associate at Kostelanetz LLP. “But not all staking rewards are newly created, so how are those to be treated?”
Read a full version of the article here.
