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.
It may be a taxable event but it sounds like the end result is $0 taxable gain.
Your Crypto Tax Guide states:
If you buy, sell or exchange crypto in a non-retirement account, you'll face capital gains or losses.
As an example, you purchase 300 units of A for $1 each equals $300 cost basis in the property. The staking platform gives you credit for the $300 with no gain or loss.
You now have X units of B with a cost basis of $300.
If the staking platform had given you credit for $350 and your cost basis in the property was $300, you would report a $50 gain.