Read on Twitter
TokenTax @joinClubhouse questions $ answers recap thread below 
1/ https://twitter.com/defi_dad/status/1357748560624824320
1/ https://twitter.com/defi_dad/status/1357748560624824320
Is a deposit into a DeFi protocol a taxable event? (1/2)
Swapping ETH for wETH during a deposit is technically a trade, but the assets being so similar may cause it to not be taxable. However, you will need to be ready to substantiate support for to an IRS examination
2/
Swapping ETH for wETH during a deposit is technically a trade, but the assets being so similar may cause it to not be taxable. However, you will need to be ready to substantiate support for to an IRS examination
2/
Is a deposit into a DeFi protocol a taxable event? (1/2)
It may be non-taxable, or it may be taxable under current guidance. The most important aspect is to be consistent on if you’re treating ALL deposits as non-taxable, or ALL deposits as taxable
3/
It may be non-taxable, or it may be taxable under current guidance. The most important aspect is to be consistent on if you’re treating ALL deposits as non-taxable, or ALL deposits as taxable
3/
How is staking taxed?
Rewards earned from staking are treated as interest income or other income, both of which are taxed at ordinary rates
If you unstake an appreciated crypto and then sell it, you will need to pay capital gains tax on that appreciation
5/
Rewards earned from staking are treated as interest income or other income, both of which are taxed at ordinary rates
If you unstake an appreciated crypto and then sell it, you will need to pay capital gains tax on that appreciation
5/
How are NFTs taxed?
If you buy an NFT and re-sell it at a higher value, your will have a taxable gain on the value of the appreciation
6/
If you buy an NFT and re-sell it at a higher value, your will have a taxable gain on the value of the appreciation
6/
How are crypto charitable donations taxed?
If donated to a charity, your tax deduction is:
Original cost of the crypto if you held it less than a year
Full appreciated value of the donated crypto if held over a year
7:
If donated to a charity, your tax deduction is:
Original cost of the crypto if you held it less than a year
Full appreciated value of the donated crypto if held over a year
7:
How are gifts of crypto to family/friends taxed?
There is no tax deduction for giving gifts to an individual, and if you give more than $15,000 of crypto to someone, you will need to file a gift tax return
8/
There is no tax deduction for giving gifts to an individual, and if you give more than $15,000 of crypto to someone, you will need to file a gift tax return
8/
