> For the complete documentation index, see [llms.txt](https://docs.recap.io/us-tax-guide-for-individuals/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.recap.io/us-tax-guide-for-individuals/transaction-types/staking.md).

# Staking

![](/files/vDO4TOpcHzPT09lL2klJ)

## What is Staking?

{% hint style="info" %}
Staking is where you can stake some of your crypto to contribute to the Proof of Stake network of that asset. As a reward, you earn more assets from the network at a percentage rate over time.  
{% endhint %}

{% hint style="danger" %}
There has been no official guidance on Staking from the IRS and as such we recommend that you speak with your tax attorney or accountant about the best way to file your return.
{% endhint %}

In general, the IRS considers any increase in value that you receive as income. So, if you receive rewards, it is generally taxed as income at the fair market value at the time received.

![](/files/Y8ThDOAwIhSUUjzqyLMA)

> **Example:** Louise is awarded 0.5 ETH for staking activities on 03/01/2022. When this ETH arrives in her wallet, she checks the current market value of that asset ($3k). $3k is recorded as ordinary income.

## Staking in [Recap](https://recap.io/)

Recap has been designed to work out the taxable impact of staking based transactions. 

1. Simply connect your exchange accounts or wallets through our automated integrations or enter your data manually via the user interface or CSV file. 
2. Recap only creates taxable events for staking reward transactions, generating acquisition and income tax events based on the asset's market value (determined by Recap's valuation engine using both foreign and cryptocurrency exchange rates).
3. See the tax impact of every staking reward transaction (example below) in the tax tab or download a PDF tax report 

![](/files/qYIyU62mIhUwY6d66HEH)


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.recap.io/us-tax-guide-for-individuals/transaction-types/staking.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.