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Staking Questions & Answers

Explore community questions and practical answers about staking.

Questions tagged Staking

Staking rewards taxation: Income vs capital gains treatment?

I've been staking ETH and ADA for months. Are the staking rewards taxed as ordinary income when received, or only when I sell them?

Staking rewards taxation: Income vs capital gains treatment?

I've been staking ETH and ADA for months. Are the staking rewards taxed as ordinary income when received, or only when I sell them?

Staking rewards taxation: Income vs capital gains treatment?

I've been staking ETH and ADA for months. Are the staking rewards taxed as ordinary income when received, or only when I sell them?

Staking rewards taxation: Income vs capital gains treatment?

I've been staking ETH and ADA for months. Are the staking rewards taxed as ordinary income when received, or only when I sell them?

Best way to handle DeFi staking and liquidity rewards for 2025/2026 taxes?

I've earned staking rewards, liquidity provider fees, and yield from platforms like Aave, Uniswap, and Lido. Are these treated as income when received, capital gains when sold, or both? Any reliable methods or software for tracking cost basis in DeFi, especially across chains?

Latest HMRC position on DeFi lending interest and yield farming (2025–2026)?

I've been providing liquidity on Uniswap and lending stablecoins on Aave throughout 2025. I know HMRC used to treat every token movement in/out of pools as a disposal, but there was talk of potential changes or "no gain/no loss" treatment for certain DeFi deposits. Has anything been clarified or updated going into the 2025/26 tax year? I'm trying to figure out if interest/yield is still miscellaneous income and whether impermanent loss can offset gains. Appreciate any recent experiences or links to official guidance!

Best way to track cost basis for Ethereum staking rewards in 2025?

I've been staking ETH directly through my wallet since the Merge and received quite a few rewards throughout 2025. From what I've read, rewards are treated as income at fair market value when received (UK perspective), and then you get a new cost basis for future disposals. Has anyone found a reliable method or tool to automate this? I've tried Koinly and ZenLedger, but the staking reward handling still requires manual tweaks. Also curious if the recent IRS guidance on PoS rewards changes anything for non-US residents filing in the UK. Any recommendations welcome!