Is that something you guys can fix? Not sure Binance gives you the information to differentiate.
Is this a similar issue? Binance API - Staking is classified as Income
The withdraw of coins to the pool and the deposit of the returned coins when exiting the pool should be manually classified as an internal transfer, following the same process as the in the blog post here. Only the staking rewards should be considered income.
Can you please specify what part of the process is being classified as “Income”. A screenshot with an explanation would help the support team figure out any possible problems.
You put the wrong link into your answer right?
The staking rewards are classified as “Income”, but the right classification would be “Staking”.
According to the article here, the “Staking” classification is for funds you are using for staking, “Staking Income” is your staking rewards, and “Staked” is the funds that have been staked.
You are right though, the rewards are classified incorrectly. The rewards shouldn’t be classified as “staking” though, they should be classified as “staking income”.
I could be wrong but I think “staking income” and “income” would be taxed the same, but I guess that would be determined by your jurisdiction.
Hey guys! I understand your frustration with the staked and staking classifications so just to clear this out from out standpoint:
all tokens that were staked=do not classify
all tokens that came as a reward for staked tokens=staking
The reason why we don’t have more strict guidelines is because there aren’t any and they are subject to the interpretation of the different jurisdictions. That bein said, here is an article from Bloomberg providing further context on the matter:
Now, the lender could be considered to have converted their crypto for another crypto when they “stake” their money into the liquidity pool and received another token they can sell elsewhere. That is a taxable event, so in this example, just as dividends are taxable, so are tokens generated from staking activities.
However, it’s not as straight-forward as that because this transaction can also be viewed in another way; in that what the lender deposited in the liquidity pool is still their money and the tokens they receive in exchange is nothing more than a receipt. That means it is not a taxable event.
Meanwhile, on the borrower’s side, it can be argued that depositing collateral and receiving a loan in a different token form is akin to an exchange transaction, so a taxable event. Of course, usually taking a loan is not a taxable event. However, the transaction on a DeFi is unique. Unlike conventional loans, it includes depositing one currency as collateral to receive a loan in another.
If you need any tax assistance with your crypto taxes, make sure you visit ACTAN in the Hub where any of our crypto tax professionals can help you out.
If this is true, then the article posted below with the definitions of the classifications is wrong and needs to be corrected. Whats being suggested here would give different results in your tax calculations.
According to that article, the classifications are as follows:
Staking: Coins that you are using to stake.
Staking Income: Coins that you earn during staking.
Staked: Use this classification if a transaction was staked. Taxwise this has different implications based on the country you live in.
I agree. That’s wrong.
For classifications, please make sure to reference this documents: You searched for classifications - Accointing Blog - Cryptocurrency Portfolio Tracking & tax Software
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