I put 2.5 ETH into a service and I got nothing back.
Then every day the service sends me some USDT.
How do I treat these transactions for tax purposes? It is not staking because I don’t get the 2.5 ETH back.
I’m thinking of treating it like this:
- For the transaction where I send 2.5 ETH into the service I change the proceeds to $0. So the full amount gets marked as a capital loss.
- Then for each day that I receive a transaction for some USDT from the service I mark it as a payment, so it is taxed as income.
Is this how I should do it? Or is there a better way?