Vanessa A
Expert Alumni

Get your taxes done using TurboTax

You are not double taxed on this because you are only taxed on the amount above your basis in the asset.  So if you received $1,000 in Staking Rewards and that was included in your income, then you reinvest for a month then liquidate at $1,200 you would only be taxed on the gain of $200, not the full $1,200.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"