So, to add disclosure of my question above, I have staked crypto assets through Kraken but was unstaked at the time of selling any particular asset. Ergo, upon going over all parts of IRS Form 1040, TurboTax detected several transactions for a closer look at what I had from a CSV file (i.e. every transaction which identified either as a capital gain or loss, and staking rewards which a crypto asset position earns rewards from). The reason for this comes from the question, "How did you receive this investment?", asking me if it was a settlement, investment purchase, gift, or something else. At first, I would have determined it as "I received it as a gift", knowingly aware that crypto staking involves receiving rewards in the form of more crypto within its network. But I need a second opinion. What should the right approach here when classifying each transaction as a staked reward, given which all of the rewards were sold through a crypto exchange?
