STAKING TAX POLICY
Ethxtrade is a platform that allows users to stake their crypto tokens and earn rewards by validating transactions on various blockchains. Ethxtrade recognizes that staking is a taxable activity that generates income and incurs expenses. Therefore, Ethxtrade adopts the following policy for its users:
- * The amount exceeding $50,000 USD will be automatically staked in a designated staking pool plan.
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- * The specific staking mechanism and associated risks will be outlined in a separate document or within the platform's user interface.
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- * Staking rewards will be calculated and distributed according to the rules and terms of the chosen staking pool.
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- *Users must report their staking rewards as ordinary income in the year they receive them. The amount of income is equal to the fair market value of the tokens at the time of receipt.
*Users must deduct the cost of staking from their income. This includes the costs of running computers and other equipment, as well as the amortization of the staked tokens. Users can amortize the original cost of their staked tokens over 15 years, using the straight-line method, as long as their tokens remain staked.
*Users must keep track of their staking transactions.
*While your capital is staked, you will not be able to withdraw the funds until the staking period is complete. Any withdrawal requests and associated fees will be refunded back to your Ethxtrade wallet.
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- * "Users are not permitted to re-invest amounts exceeding $50,000.
*Users are responsible for paying any taxes due on their staking income and complying with any tax laws and regulations.
*Users must commit to a minimum staking duration for each investment plan they choose. The duration varies depending on the plan, ranging from 7 days to 270 days.
*Users cannot unstake their tokens before the end of the duration, otherwise they will forfeit their rewards and incur a penalty fee.
*Users must pay the taxes on their staking rewards before they can withdraw them from their account. Ethxtrade will withhold a percentage of the rewards as a tax prepayment and transfer it to the IRS on behalf of the users. The percentage varies depending on the user’s tax bracket and the type of tokens they stake.