Add Fee's for claiming staking/lending rewards

On Solana I am staking LIKE - Only1 Token. Claiming those rewards is causing TX FEEs. I cannot even manually add Fees to my wallet.

You have 2 options:

Option 1:
Use https://stake.tax/ to create a file for you.
Open the file and add the fees.
Upload the file to Accointing

Option 2:
Use https://stake.tax/ to create a file for you.
Upload the file to Accointing
Edit the full data set and add in all the fees

For option 2, there are 2 ways to add fees.

  1. Edit a transaction in the full data set and then add the fee.
  2. Manually add a new withdrawal transaction and then classify it as a fee.

Hi Matt, For option 2, 2nd way → When I manually add a new withdrawal txn and then classify it as a fee.

Does this fee txn deducted from the realized gains similar to trade txn fees ?

Thank you
Sip

Hi @Sip - I would go with #1 from the options that Matt listed above. If you manually add a withdrawal and classify as a fee, this will not produce the desired outcome as it will consider that a separate transaction.

If you add a withdraw transaction and call it a fee, this will yield a gain or loss (at time of payment less cost basis). So say you withdraw .1 ETH as a tx fee, basis is $20 (got it back when it was 200) and currently that’d be worth about $380 - this would result in a gain of $360, not the fee being deducted. In this case what you want is that basis of $20 to get reported as a fee, not the $360 gain. Using #1 option would give you the right answer.

Hope that helps!

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Thank you @DavidAC3 !

That makes sense, however, if I report the fees in USDC or where the gain/loss in the token is near zero it should work?

Give you some context, this txn is related to a metaverse income, part of the income is taken up as fees ( fuel and food ). As soon as I get this income in this particular token, I usually sell it for other tokens or USDC immediately so there is no gain or loss.

I will try your suggestion as well. Thanks again!

-Sip

No problem!

I don’t think that will work either because then it’ll just indicate no gain or loss (or nominal) but won’t show the cost as fees. So, typically if you withdraw crypto from your portfolio (as a whole, not to transfer to another wallet), it would be to either pay someone or buy something, which would trigger the taxable gain or loss as I mentioned before. The problem is that this just considers the gains or loss, and the withdrawal doesn’t impact your tax report beyond that. The outcome we want here is to deduct the cost basis of the fees, so the $20 in my example above.

The cleanest way by far (until we add support of Solana, which trust me, I’m asking for as much as anyone else) would be to edit the stake.tax file for the fees. Otherwise if the fees are a separate transaction, we can’t link to a specific coin and that’s where the tax law doesn’t give us any guidance on those fees. So you want the fees to be directly associated with each income receipt.

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