Abhinav Soomaney Defines His Role In The Cryptocurrency World
“Let’s go downtown and have dinner. It will be my treat with cryptocurrency.”
People don’t really talk that way but the gist of the conversation is very close to being true and very near to being the new daily reality. Once we look at this new way of transacting business from a futuristic point of view and even where it is right here in the present, it’s easier to see why Abhinav Soomaney got involved in it in the first place.
He will most likely tell you that Cryptocurrency (and there are a lot of them) pulled him into its sphere because it was so new and he could instantly see that it was going to be the finance anchor of the future. He might also say that when he started out in this field five years ago, he loved learning about it because there were so many aspects to it, from investing, to trading and purchasing, Defi, NFTs, Staking, Farming, ICOs and taxation and much, much more. These are relatively new terms to many of you and we don’t have enough room here to talk about all of them, so, we’ll just try to clarify one of them and touch on the rest in later articles. What is Staking and tax reporting for Staking rewards?
Staking cryptocurrency is the practice of committing your crypto assets to a blockchain network in order to sustain it and validate transactions. It’s compatible with cryptocurrencies that process payments using the proof-of-stake approach. Staking is a process that allows rewards to be earned by holders of a specific coin. Is Staking profitable? Yes, it is! Staking is potentially a highly profitable way to invest and earn more crypto. Interest rates on your crypto can be quite considerable and can yield higher than usual rates for the investor.
How are staking rewards taxed? Interest income earned by staking a coin should be factored in as ordinary income once deposited or received. A cost basis is determined based on the deposit date which is then applied towards the sell price as and when those specific coins are sold.
Although he has many years experience in this relatively new era of doing things, he always feels the need to personally assist each client with hard work and accuracy. He looks for and finds the best solution for each and every one of his clients. The future of finance is cryptocurrency and it is becoming more popular everyday. Abhinav’s passion for this type of investment and finding ways to solve tax questions make it a painless way to confidently take a step into the future of finance.
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