When a reward is received from staking delegation, the tax treatment depends on the type of reward. If the reward is for:
- Additional tokens, it's taxed as ordinary income - see this TurboTax FAQ to enter
- An increase in the value of tokens already held, it's taxed as a capital gain - see this TurboTax FAQ to enter
Burns that have now become worthless are reported as capital gain/loss with Proceeds = $0 and the basis being what you originally paid for it. Make sure you have Proof of Burn in case of inquiry.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
