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Crypto reporting question when used to purchase a service
So I purchase 300 UNCL tokens at xyz cost. I then use these tokens (sell?) a couple minutes later on a staking platform to obtain a percent "Boost" in my earnings of another token on the staking platform. I guess this could be considered that I purchased a "service"? The 300 UNCL are then burned or permanently removed from the blockchain by the staking platform in exchange for the "Boost". Is this considered a taxable/reportable event? I have a cost basis when I purchased the UNCL but when I used them for the "Boost", is that considered a sale with an associated capital gain/loss situation? If so, it'd basically be a wash as I performed each task concurrently.
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March 4, 2023
3:07 PM