A yield-tokenization asset that represents the right to specified future yield from an underlying position until maturity.
A YT pays out yield over its life and expires worthless at maturity. The yield received is ordinary income when accessible; the decline of the YT to zero at maturity is a capital loss equal to your remaining basis. Selling a YT before maturity is a capital transaction.
Under the common position, income when received. The purchase price is basis that becomes a capital loss when the token expires.
Source: No IRS guidance as of September 2026; IRS Notice 2014-21 (property treatment)
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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