Rev. Rul. 2023-14: Why Staking Rewards Are NOT "Interest" (Schedule B Warning)

Описание: We are performing a forensic review of Crypto Staking Taxes—specifically addressing the massive confusion between "Interest Income," "Other Income," and "Business Income." With the release of Revenue Ruling 2023-14, the IRS solidified the "Dominion and Control" standard for timing, but the classification of that income remains the biggest trap for investors.

As The Finance Observer, I analyze the specific intersection of Commissioner v. Groetzinger (Trade or Business Test) and Higgins v. Commissioner (Investor vs. Dealer) to show why "Delegators" can legally avoid the 15.3% Self-Employment Tax by filing on Schedule 1, while "Validators" must pay it on Schedule C.

FORENSIC BREAKDOWN:

0:00 The Classification Crisis: Why the difference between Schedule B, Schedule C, and Schedule 1 changes your tax bill by 15.3%.

01:39 The Fundamental Difference: Why "Proof of Stake" is a service (performance risk), not a loan (interest), disqualifying it from Schedule B (Form 1099-INT).

02:10 Revenue Ruling 2023-14: The "Dominion and Control" rule. Why income is recognized the second you can move the rewards, not when you sell them.

03:40 The "Created Property" Myth: Why the Jarrett case argument failed and why relying on it now is a major audit risk.

05:22 The Groetzinger Test: The two-part Supreme Court test (Continuity + Regularity) that determines if your staking is a "Trade or Business."

06:08 Delegator vs. Validator: The Forensic Conclusion. Why "Set it and Forget it" staking (Delegating) fails the business test and lands on Schedule 1 (No Self-Employment Tax).

06:40 The Reporting Cheat Sheet: Line-by-line instructions for Schedule 1 Line 8z vs. Schedule C.

07:39 Record Keeping: The requirement to document Fair Market Value at the exact timestamp of receipt to establish Cost Basis.

DISCLAIMER: I am The Finance Observer. This content is for educational purposes only. Crypto taxation is governed by IRS Notice 2014-21 and Revenue Ruling 2023-14. The definition of a "Trade or Business" is based on judicial precedent (Groetzinger). Always consult a qualified CPA or Tax Attorney specializing in Digital Assets.