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My entire question is really not showing - the actual question is:
I'm confused:
THEN, once liquidated you are taxed AGAIN. How is this NOT a double dip for the IRS?
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.
Thanks for clarifying this for me @Vanessa A 😉
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