Ethereum Surpasses Bitcoin in Price

The Unthinkable Flip: What Happens When Ethereum Surpasses Bitcoin in Price?

by with No Comment Tech

The Unthinkable Flip: What Happens When Ethereum Surpasses Bitcoin in Price?

For years, Bitcoin has reigned supreme as the undisputed king of cryptocurrency, its price and market capitalization setting the benchmark for the entire digital asset ecosystem. Yet, the question of whether another asset, particularly Ethereum, could one day challenge that dominance is a persistent whisper in the crypto community. While ‘the flippening’ often refers to market cap, imagining a world where Ethereum Surpasses Bitcoin in Price per coin is an even more profound thought experiment. This isn’t just a speculative forecast; it’s a critical ‘what if’ scenario that could redefine the very foundations of the crypto world, ushering in an era of unprecedented technological, economic, and social shifts. Let’s delve into the intricate layers of such a historic event and its far-reaching implications.

Key Takeaways:

  • A price flip where Ethereum surpasses Bitcoin in price would trigger immediate market shockwaves, leading to significant capital reallocation and investor psychological shifts.
  • Ethereum’s enhanced utility and smart contract capabilities would likely accelerate development on its network and Layer-2 solutions, potentially impacting the entire altcoin ecosystem.
  • Regulatory bodies would face intensified pressure to classify and govern dominant smart contract platforms, leading to potential geopolitical shifts in digital finance.
  • Institutional investment strategies would evolve beyond simple allocation, exploring new financial products and market structures centered around Ethereum.
  • Ethereum’s Proof-of-Stake model would amplify environmental, social, and governance (ESG) narratives, placing renewed pressure on Proof-of-Work chains like Bitcoin.
  • The shift could bring new challenges for Ethereum, including increased regulatory scrutiny, network congestion at higher scales, and the weight of becoming the industry’s primary target.

The Unfolding of a Historic Price Flip: A Step-by-Step Scenario

While often discussed, a scenario where Ethereum’s individual price token overtakes Bitcoin’s would be a landmark event, far more impactful than just a market cap flippening. Imagine the initial triggers: perhaps a sustained period of unprecedented utility growth for Ethereum, driven by a surge in decentralized applications (dApps), non-fungible tokens (NFTs), and scaling solutions, coupled with a period of stagnation or perceived lack of innovation for Bitcoin. Macroeconomic factors, such as a flight to more ‘productive’ assets during a global economic shift, could also play a role.

The moment of the flip itself would be characterized by extreme volatility. High-frequency trading algorithms, designed to react to market sentiment and technical indicators, would amplify price movements. Retail investors, fueled by FOMO (Fear Of Missing Out) and the ‘new king’ narrative, would likely pour capital into Ethereum, while some Bitcoin holders might capitulate, further exacerbating the swing. This would create immediate, dramatic market shockwaves, potentially leading to circuit breakers on exchanges and a flurry of panic buying and selling across the entire crypto spectrum. Capital, once firmly anchored in Bitcoin as the primary store of value, would aggressively reallocate, searching for the new perceived safe haven and growth engine.

The Unthinkable Flip: What Happens When Ethereum Surpasses Bitcoin in Price?

Psychological Ripple Effects: From Maximalist Wars to Mainstream Adoption

The psychological impact of Ethereum Surpasses Bitcoin in Price would be profound, fundamentally altering the crypto community’s identity and perception. For ardent Bitcoin maximalists, it would be a moment of disbelief and potentially, a forced re-evaluation of their core tenets. The narrative of Bitcoin as the sole digital gold, unassailable in its position, would be severely tested, leading to intense debates and, for some, a painful capitulation.

Conversely, Ethereum maximalists and proponents of smart contract platforms would experience a triumphant vindication. Their long-held belief in Ethereum’s utility and technological superiority would be validated, likely fueling renewed fervor and attracting a new wave of developers and users to the ecosystem. For the broader public and traditional financial institutions, this event would signal a maturation of the crypto market, where utility and innovation are rewarded, rather than just first-mover advantage. This ‘new king’ narrative could spark increased mainstream interest, drawing in fresh capital and further accelerating adoption globally, leading to a shift in how digital assets are perceived in everyday life.

Reshaping the Technological Landscape: Innovation and Interoperability Post-Flip

With Ethereum’s price dominance, its role as the magnet for blockchain developers would intensify dramatically. This would lead to an explosion of innovation, with more resources, talent, and capital pouring into building on the Ethereum network. Solutions for scalability, security, and user experience would accelerate, making the platform even more robust and accessible.

The impact on Layer-2 solutions would be particularly significant. As demand for Ethereum’s blockspace surges, Layer-2s like Arbitrum, Optimism, zkSync, and Polygon would become even more critical for managing transaction volume and keeping fees low. Their adoption would likely skyrocket, turning them into indispensable components of the broader Ethereum ecosystem. For the altcoin market, a price flip could have dual effects. Some altcoins deeply integrated into the Ethereum ecosystem might see a correlated rally, benefiting from the halo effect. Others, especially those competing directly with Ethereum’s smart contract capabilities, might face increased pressure to differentiate or risk being overshadowed. The entire blockchain industry would be forced to adapt, with other chains either specializing in niche applications or accelerating their own technological roadmaps to compete with a newly dominant Ethereum.

Economic Paradigm Shift: Investment Strategies and Financial Products

The implications for institutional investment would extend far beyond simply shifting asset allocations from Bitcoin to Ethereum. Financial institutions would likely begin to explore entirely new financial products and market structures. We could see the rapid development of Ethereum-based ETFs, futures, options, and structured products designed to offer exposure to its growth and utility. Asset managers might create new indices that give greater weight to programmable blockchains, fundamentally altering portfolio construction in the digital asset space.

Retail investment trends would also evolve, with Ethereum becoming the new ‘blue chip’ crypto, attracting more conservative investors seeking long-term growth and yield. The Decentralized Finance (DeFi) sector, predominantly built on Ethereum, would likely see an unprecedented boom. New protocols, lending platforms, and decentralized exchanges would emerge, further solidifying Ethereum’s role as the foundational layer of the future financial system. Investors would increasingly focus on yield opportunities, staking rewards, and participation in the burgeoning dApp economy.

The Unthinkable Flip: What Happens When Ethereum Surpasses Bitcoin in Price?

Regulatory Scrutiny and Geopolitical Implications

A scenario where Ethereum Surpasses Bitcoin in Price would inevitably lead to intensified regulatory scrutiny. Regulators globally would be forced to more definitively classify Ethereum: is it a ‘security’ given its initial coin offering and ongoing development, or a ‘commodity’ like Bitcoin, or perhaps a new hybrid category? This debate would have significant implications for how it’s taxed, traded, and integrated into traditional finance. Governments might also see Ethereum’s dominance as a geopolitical factor, potentially leading to national strategies around blockchain technology and digital currencies, aiming to either embrace or control its influence.

The environmental narrative, particularly Ethereum’s successful transition to Proof-of-Stake (PoS), would become a central point of discussion. Regulators and policymakers, often concerned with the energy consumption of Proof-of-Work (PoW) blockchains, would likely laud Ethereum’s greener footprint. This could place renewed pressure on Bitcoin and other PoW chains to address their energy consumption, potentially influencing future regulatory frameworks and public perception.

Here’s an example of the kind of regulatory discussions already taking place around crypto (requires subscription).

Why the Flip? Projecting Future Convergence and Divergence

The ‘why’ behind such a flip extends beyond current utility to future technological convergence and divergence. Bitcoin’s core value proposition remains its role as a decentralized, scarce, and censorship-resistant store of value. Ethereum, however, offers a platform for programmable money, smart contracts, and a vast ecosystem of decentralized applications. A price flip would suggest that the market increasingly values this utility, recognizing Ethereum not just as a currency but as the foundational infrastructure for a new digital economy.

This shift would highlight a divergence in market perception: while Bitcoin is akin to digital gold, Ethereum is evolving into digital oil, powering countless applications and services. The convergence of various technologies — artificial intelligence, Web3, tokenized real-world assets — all finding a home on Ethereum’s robust smart contract platform, could be the ultimate catalyst. The network effects, driven by its massive developer community and active use cases, would accelerate, creating a powerful feedback loop that further cements its position.

The PoS Advantage: Energy, Environment, and Public Perception

Ethereum’s transition to a Proof-of-Stake (PoS) consensus mechanism has dramatically reduced its energy consumption, making it significantly more environmentally friendly than Bitcoin’s Proof-of-Work (PoW). If Ethereum Surpasses Bitcoin in Price, this environmental narrative would become a powerful differentiator. In a world increasingly focused on ESG (Environmental, Social, and Governance) factors, Ethereum’s ‘green’ credentials would provide a significant advantage for corporate and institutional adoption. Companies seeking to align with sustainable practices would find Ethereum an easier choice, influencing investment decisions and public relations narratives.

This could also fuel a broader public discussion about the environmental impact of blockchain technology. While Bitcoin maximalists would likely defend PoW as a necessary component of security and decentralization, the mainstream appeal of a highly valuable, energy-efficient blockchain like Ethereum could shift public perception and put pressure on other energy-intensive digital assets to follow suit or risk being left behind in the evolving landscape of sustainable finance.

Potential Challenges and Downsides for a Dominant Ethereum

While the prospect of Ethereum’s price dominance is exciting for many, it’s crucial to consider the potential challenges and downsides. As the primary target, Ethereum would face unprecedented levels of regulatory scrutiny, potentially leading to more stringent compliance requirements or even attempts at direct control by state actors. Its decentralization, a core tenet of crypto, could be tested under the weight of such attention.

Furthermore, increased adoption and transaction volume, even with Layer-2 solutions, could lead to new forms of network congestion or security vulnerabilities if not managed effectively. The very success that propels its price could become a bottleneck if scaling solutions struggle to keep pace with demand. The burden of being the industry’s de facto leader would also bring immense pressure to continuously innovate, secure the network, and maintain its open-source, community-driven ethos in the face of immense commercial and political pressures. An internal link to a related article about challenges in crypto regulation could be useful here.

Conclusion: A Glimpse into Crypto’s Evolving Future

The hypothetical scenario where Ethereum Surpasses Bitcoin in Price is more than just a fleeting speculation; it’s a powerful thought experiment that illuminates the potential trajectory of the entire crypto ecosystem. It forces us to consider a future where utility, innovation, and environmental responsibility might play an even greater role in determining market leadership. While Bitcoin’s legacy as the pioneer and digital gold remains undisputed, an Ethereum price flip would herald a new era, characterized by a more functional, interconnected, and perhaps, more regulated digital economy. Such an event would not be the end of the crypto story, but rather a dramatic new chapter, inviting us all to adapt, innovate, and imagine the next frontier.

Frequently Asked Questions (FAQs)

What does it mean if Ethereum ‘flips’ Bitcoin?

Historically, ‘flippening’ referred to Ethereum’s market capitalization surpassing Bitcoin’s. If Ethereum Surpasses Bitcoin in Price, it means the individual unit price of one ETH token would be higher than one BTC token, a more significant and less frequently discussed milestone.

Could Ethereum realistically surpass Bitcoin in price?

While highly challenging due to Bitcoin’s scarcity and established market position, a scenario where Ethereum’s utility dramatically expands, its scalability improves, and institutional adoption surges, coupled with a relative stagnation of Bitcoin, could theoretically lead to a price flip. It’s a complex interplay of technological development, market dynamics, and global economic factors.

How would a price flip impact other cryptocurrencies (altcoins)?

A price flip could lead to a ‘halo effect’ for altcoins within the Ethereum ecosystem, potentially increasing their value. However, it might also intensify competition for other smart contract platforms, forcing them to innovate rapidly or specialize to find their niche in a market dominated by Ethereum.

What are the main arguments for Ethereum’s potential long-term dominance?

Arguments for Ethereum’s long-term dominance often center on its programmable smart contract functionality, vast developer ecosystem, leading position in DeFi and NFTs, and its shift to a more energy-efficient Proof-of-Stake consensus mechanism, which appeals to ESG-conscious investors and institutions.

What challenges would Ethereum face if it became the dominant cryptocurrency by price?

Dominance would likely bring increased regulatory scrutiny, potential network congestion at higher scales, and the immense pressure to maintain its decentralized nature and security against state-level attacks and sophisticated cyber threats. It would become a much larger target for both innovation and criticism.

How does Ethereum’s Proof-of-Stake (PoS) system compare to Bitcoin’s Proof-of-Work (PoW) in this context?

Ethereum’s PoS system consumes significantly less energy than Bitcoin’s PoW, making it more environmentally friendly. If Ethereum Surpasses Bitcoin in Price, its PoS advantage would be heavily emphasized, likely influencing institutional adoption, public perception, and potentially future regulatory frameworks that favor sustainable blockchain technologies.

Would a price flip mean the end of Bitcoin?

Not necessarily. Bitcoin’s role as a decentralized store of value and digital gold would likely persist. A price flip would indicate a shift in market priorities towards utility and programmable money, but Bitcoin could still maintain a significant and crucial role in the broader crypto ecosystem, albeit perhaps not as the absolute price leader.

Tags: ETH price flip, crypto market dominance shift, flippening implications, future of blockchain, post-flippening crypto landscape, Bitcoin vs Ethereum future, altcoin impact, crypto investment strategy, regulatory response crypto

Reporting DeFi Crypto Staking Rewards US Taxes

Mastering DeFi Crypto Staking Rewards: Ultimate US Tax Strategies

by with 2 Comments Tech

Mastering DeFi Crypto Staking Rewards: Ultimate US Tax Strategies

The decentralized finance (DeFi) landscape offers exhilarating opportunities for earning passive income through crypto staking. However, the excitement often gives way to a daunting question: How do you accurately handle Reporting DeFi Crypto Staking Rewards US Taxes? The IRS views cryptocurrency as property, not currency, for tax purposes, making its taxation a nuanced and frequently evolving challenge. This guide delves into advanced strategies to navigate the complexities, ensuring compliance and potentially optimizing your tax position for DeFi staking rewards.

Key Takeaways:

  • DeFi staking rewards are generally taxed as ordinary income upon receipt when you gain “dominion and control.”
  • The fair market value (FMV) at the time of receipt establishes the cost basis for future capital gains/losses.
  • Accurate record-keeping is paramount for tracking numerous, often small, transactions.
  • Specialized crypto tax software is essential for automating complex DeFi tax calculations.
  • Be aware of potential dual taxation (income + capital gains) and explore strategies like tax-loss harvesting.

Understanding the Basics: DeFi Staking & US Tax Principles

DeFi staking involves locking up cryptocurrency in a protocol to support its operations, such as validating transactions in a Proof-of-Stake (PoS) network, in exchange for rewards. These rewards can be in the same token, different tokens, or protocol-specific assets. The Internal Revenue Service (IRS) has made it clear that staking rewards are taxable.

The IRS Stance: Income & Control

According to IRS guidance, specifically Revenue Ruling 2023-14, staking rewards are considered ordinary income. This income is recognized at the time you gain “dominion and control” over the assets — meaning you can freely move, spend, or trade them. For example, if rewards are initially locked and become available later, they are taxed when they unlock, not when they are first earned. This interpretation addresses situations like Ethereum’s transition to Proof-of-Stake (Eth2 staking) where rewards were inaccessible for a period.

The fair market value (FMV) of the crypto at the moment you receive dominion and control is what determines your taxable income. This applies to various forms of staking, including traditional PoS, liquid staking, and rewards from DeFi protocols.

Timing is Everything: When Staking Rewards Become Taxable

The timing of when staking rewards become taxable income is a critical, and often debated, aspect for US taxpayers. The IRS’s “dominion and control” principle is central here. For many, rewards hit their wallet immediately and are usable, making the time of receipt the taxable event. However, some DeFi protocols or direct staking mechanisms might lock rewards for a period.

For instance, if your staked tokens generate rewards that are vested or locked, you generally don’t recognize income until those rewards become accessible and you can dispose of them. This distinction is vital for accurate reporting, as it affects the tax year in which the income must be declared.

Reporting DeFi Crypto Staking Rewards US Taxes

Calculating Your Cost Basis: The Crucial Step

Once staking rewards are received and taxed as ordinary income, they establish their own cost basis. This cost basis is the fair market value of the crypto in US dollars at the exact date and time you gained dominion and control over it.

This “new” cost basis is vital because if you later sell, trade, or otherwise dispose of those staked rewards, you will incur a second taxable event — a capital gain or loss. The gain or loss is calculated as the difference between the sale price (or FMV at disposal) and your established cost basis.

Example: You receive 1 UNI token as a staking reward when its value is $10. You report $10 as ordinary income. Your cost basis for that 1 UNI token is now $10. If you later sell that UNI for $15, you have a $5 capital gain. If you sell it for $8, you have a $2 capital loss. This clarifies the common Reddit and Quora question about being “taxed twice” — you’re taxed on income when received and then on capital gains/losses when disposed of, not the same money twice.

Advanced Strategies for Tracking and Reporting

The sheer volume and complexity of DeFi transactions, especially frequent staking rewards, can quickly overwhelm manual record-keeping. This is where advanced strategies become indispensable.

Utilizing Specialized Crypto Tax Software

Crypto tax software is no longer a luxury but a necessity for serious DeFi participants. Tools like Koinly, CoinLedger, CoinTracking, ZenLedger, and Bitwave are designed to integrate with various blockchains, wallets, and exchanges, automatically importing and categorizing transactions. They can help:

  • Automatically determine the FMV of received rewards at the time of receipt.
  • Track thousands of micro-transactions from multiple DeFi protocols.
  • Calculate cost basis using methods like FIFO (First-In, First-Out) or LIFO (Last-In, First-Out), or specific identification.
  • Generate necessary tax forms (e.g., Form 8949, Schedule D, Schedule 1) for filing.

When selecting software, prioritize those with strong DeFi and on-chain support, as they are better equipped to handle liquidity pool activities, yield farming, and various token swaps often encountered in the DeFi space. Look for software that can connect directly to wallet addresses and major DeFi protocols, not just centralized exchanges. CoinLedger, for example, is noted for its DeFi tracking capabilities.

Meticulous Manual Tracking (If Software Falls Short)

While software automates much, some obscure DeFi protocols or very complex strategies might require manual input. Maintain detailed spreadsheets including: transaction date and time (with UTC timezone), type of transaction (e.g., ‘staking reward received’, ‘LP token provided’), amount of crypto, token name, specific protocol, and the fair market value in USD at that exact moment. This level of detail is crucial for proving your calculations to the IRS if audited. IRS Publication 544 offers guidance on sales and other dispositions of assets, which is relevant for crypto.

Deducting Expenses and Gas Fees

The deductibility of expenses associated with staking is a common question. If your staking activity is classified as a hobby by the IRS, deductions are generally limited to the amount of income earned from staking. However, if your activity rises to the level of a trade or business, you may be able to deduct ordinary and necessary business expenses, including hardware, electricity, and network (gas) fees associated with earning or managing your staking rewards. This is a complex area, and consulting a tax professional is highly recommended to determine your specific eligibility.

Navigating Complex DeFi Scenarios

DeFi extends beyond simple staking. Yield farming, liquidity provision, and other activities introduce additional tax complexities.

Yield Farming and Liquidity Pools

Yield farming, where users provide liquidity to decentralized exchanges or lending protocols to earn rewards (often new tokens or a percentage of fees), is generally treated similarly to staking. Rewards received are considered ordinary income at their FMV when you gain control.

Providing liquidity and receiving LP (Liquidity Provider) tokens can sometimes be considered a non-taxable event, similar to a wallet transfer. However, if you receive a different token in exchange (e.g., cETH for ETH), this could be a taxable crypto-to-crypto trade. Exiting a liquidity pool can also trigger a taxable event if the assets you receive back differ from your initial deposit, or if there’s an impermanent loss/gain.

Reporting DeFi Crypto Staking Rewards US Taxes

Airdrops, Forks, and New Tokens

Tokens received through airdrops or hard forks in the context of DeFi activities are generally taxable as ordinary income at their fair market value when received, provided you have “dominion and control.” It’s crucial to identify the exact date and time you could access these new tokens to establish their cost basis.

Impermanent Loss and Its Tax Treatment

Impermanent loss, a temporary loss of funds that liquidity providers experience when the price of their deposited assets changes compared to when they deposited them, is generally not a taxable event until the assets are withdrawn from the liquidity pool. At that point, the realized loss (or gain) is recognized for tax purposes.

Mitigating Tax Liabilities (Legally!)

While taxes on DeFi staking rewards are unavoidable, there are strategies to manage your liabilities.

Tax-Loss Harvesting

This strategy involves selling cryptocurrency at a loss to offset capital gains and, to a limited extent, ordinary income. If you have staking rewards that have depreciated in value since you received them (and recognized income), selling them can create a capital loss to offset other crypto gains or up to $3,000 of ordinary income annually.

Long-Term vs. Short-Term Capital Gains

Holding your received staking rewards for more than one year before selling them can qualify them for more favorable long-term capital gains tax rates, which are often lower than ordinary income tax rates. This strategy requires careful planning and tracking of each reward’s holding period.

Common Pitfalls and How to Avoid Them

Many crypto investors trip up on these common mistakes:

  • Underreporting Income: All staking rewards, regardless of amount, must be reported. There’s no minimum threshold from the IRS for crypto income.
  • Inaccurate Cost Basis: Failing to correctly determine the FMV at the time of receipt leads to incorrect capital gain/loss calculations.
  • Lack of Documentation: Without a robust record of every transaction, proving your tax position to the IRS becomes incredibly difficult.
  • Ignoring Small Transactions: Even micro-rewards contribute to your overall income and must be accounted for.
  • Confusing Transfers with Taxable Events: Moving crypto between your own wallets is generally not a taxable event, but certain DeFi interactions might be.

The IRS is increasing its focus on crypto tax compliance, with upcoming regulations requiring exchanges to share more data. Proactive and accurate reporting is key to avoiding penalties and audits.

Conclusion

Reporting DeFi crypto staking rewards on your US taxes is undeniably complex, but with the right strategies and tools, it’s a manageable task. Understanding the IRS’s “dominion and control” principle, diligently tracking fair market values, leveraging specialized tax software, and being aware of nuanced DeFi scenarios are paramount. By adopting these advanced approaches, you can navigate the tax season with confidence and maintain compliance in the dynamic world of decentralized finance.

Frequently Asked Questions (FAQs)

Are crypto staking rewards always taxed as income?

Yes, in the US, crypto staking rewards are generally taxed as ordinary income. The IRS clarified this in Revenue Ruling 2023-14, stating that rewards are taxable when you gain “dominion and control” over them — meaning when you can freely access, sell, or transfer the tokens.

When exactly are staking rewards considered “received” for tax purposes?

Staking rewards are considered “received” when you have dominion and control over them. This means the moment they are deposited into your wallet and are accessible for you to sell, exchange, or transfer. If rewards are locked for a period (e.g., during an upgrade like Eth2), they are taxed when they become unlocked and usable.

How do I calculate the fair market value (FMV) of my staking rewards?

The FMV is determined by the USD value of the cryptocurrency at the precise date and time you received dominion and control over it. You can use prices from reputable exchanges where the crypto is traded, or a reliable cryptocurrency pricing index if it’s not widely listed. Consistency in your valuation method is important.

Do I pay taxes twice on staking rewards if I receive them and then sell them?

You are not taxed twice on the same amount. You are taxed on two separate taxable events: first, as ordinary income when you receive the staking reward (based on its FMV at that time); and second, as a capital gain or loss when you later sell or dispose of that reward. The cost basis for the capital gain/loss calculation is the FMV you reported as income upon receipt.

What tax forms do I need for Reporting DeFi Crypto Staking Rewards US Taxes?

You’ll typically report staking income on Schedule 1 (Form 1040), Line 8 (“Other Income”). If your staking activity qualifies as a trade or business, you would report income and expenses on Schedule C (Form 1040). Any subsequent sale of staking rewards that results in a capital gain or loss will be reported on Form 8949, and then summarized on Schedule D (Form 1040).

Can I deduct gas fees or other expenses related to DeFi staking?

The deductibility of gas fees and other staking-related expenses depends on whether your activity is considered a hobby or a trade/business by the IRS. If it’s a hobby, deductions are generally limited to the income generated. If it’s a business, you might be able to deduct ordinary and necessary business expenses. This area is complex, and professional tax advice is recommended.

Is staking through centralized exchanges taxed differently than DeFi staking?

While the mechanics differ, the tax principles are largely similar: rewards are treated as ordinary income upon receipt when you have dominion and control. Centralized exchanges might issue Form 1099-MISC if your rewards exceed $600, but you are required to report all income regardless. DeFi staking often requires more diligent manual tracking or specialized software due to the lack of centralized reporting.

What if I incurred an impermanent loss in a DeFi liquidity pool?

Impermanent loss is not a taxable event until you withdraw your assets from the liquidity pool. At that point, if the value of the assets you receive back is less than their adjusted cost basis (including the initial deposit and any received rewards), you would realize a capital loss that can be reported on your tax return.