Taxation of Staking

BlondeFishBlondeFish
in BAP/Staking
Taxation of Gambling: Tax Implications of Staking Activity
Let’s go back to our Canadian resident, and let’s call him Stu. Suppose in 2011, Stu won $10,000 in a poker tournament held at a Tribal casino in New York State. The casino is required to withhold $3,000 (30% of $10,000) and issue to Stu a Form 1042-S, Foreign Person’s US Source Income Subject to Withholding.
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Takeaway #4: When staking activity involves US nonresidents, Form 1042 and Form 1042-S filing requirements may apply not only to casinos but also to the recipients of the winnings.
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Comments

  • HobbesHobbes
    Moral of the story....

    No matter how you dice it, the IRS gets their share.
  • JimmyHoJimmyHo
    Heard a lot of cdns winners in the us get retro agreements to prove a portion of their winnings are owing to residents from other countries that are not subject to w/h (uk, etc.).
    Thereby effectively avoiding the 30% on a portion of their winnings.
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