Tax on Interest from DeFi Lending

Hi all,

Not sure where else to post this, so if it needs to be moved elsewhere, feel free to move.

I have a question regarding tax on interest earned from DeFi lending. Say you’re paid out interest monthly, the value of BTC at the point of the payouts will obviously vary from then to year-end.

How, then, is interest revenue determined for taxation purposes? Do you add up the crypto earned x the spot rate at the time of each payout? Or is it the total crypto payout for the year x year-end spot rate?

Looking forward to reading what you guys think!

Hey @FaierPlay, from what I understand, you are taxed on the value when you earn the interest, which would be the spot rate at the time you receive the interest.