Categories "Staking" & "Staking Income" don't work / confusion

I’m staking Cake token in PancakeSwap Syrup Pools to receive back Cake. Curently there is no way on BSC to categorize the funds I lock to the pool as “staking” and the income I receive from it as “staking income”.

Your documentation says that theres is a category “staking income” but I cannot select it.

In addition, all transactions categorized as “staking” are treated as other taxable income in the tax report. In my opinion there should be a separate tax free category “staking income” to selcet from as stakin income is presumably tax free in some jurisdictions (Germany).

How can I classify funds that I gibe int a pool as “staking” and the rewards from it as “staking income”

I addition, tokens received from staking are recorded as purchases with a price that dollar cost averages up the whole position. That’s not correct in my opinion, the should be bookef for free / 0 USD, no?

Somewhere else on the forum somebody also had a question on staking and staking income. The response was that the staking classification actually means staking income. There is currently no classification to have ‘withdrawing’ with staking. I’d wait for somebody from Accointing to answer, but that is what I understood.

Also, staking income is not tax free in Germany, as per my understanding it is classified as taxable income. However, you don’t have to pay tax over sales as you’ve paid income tax over receiving them. This is also why it needs to use the value at the moment you receive it for income tax. So in that sense it is actually correct. At least that is how I understood it. I’d be happy to be corrected by the Accointing wizards though :slight_smile:

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Thank you! And how do I classify the transactions from and to the staking pool? I don’t want to classify them as swaps. Just leave it blank as unclassified?

The easiest way is to create a new wallet without an address and label it the name of the coin(s) being staked. Then you can manually add transactions to link internal transfers of the staked coins. Once you do that it’ll show that you still own the coin and you just need to mark the interest as either “staked income” or “Liquidity Pool”.

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Thank you. One more question: Will just keeping the CAKE Staking on BSC and classifying the in/out to the Syrup Pool as “Swap” and the return from the pool als “Staking” lead to a correct result (i.e. is this the way Accointing is intended to use?)

Just so you know how swap works, it’s made to swap one coin for another kind of coin. In terms of taxes it shows you are selling one coin and buying another. If you are just putting “CAKE” into the pool and receiving the same amount of cake in return, it’s an internal transfer not a swap. If you are taking interest earned out of the pool, then that should be classified as “staking income” and not staking. I could be wrong but I included a link of what all terms mean below.

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staking income is not tax free in Germany! I don’t know where you got that information from.

@stifab

While I am from the US, so I don’t know too much of Germany Taxes. But to my understanding in the US, Staking income shouldn’t be tax free and I never said or implied that it was. Staking income is the interest you are receiving from the pool, so by definition you should be paying taxes on it when taking it out of the pool, even if you are putting it back into the pool which is increasing your investment amount. Your investment amount being returned should be the only tax free part of it, since taxes have already been paid on that amount. which is why when exiting the pool, your investment amount should be classified as an internal transaction, and any interest made from that amount that you haven’t paid taxes on should be classified as investment / staking income.

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Staking income is sorta like how dividends are treated. Taxed, even if you use it to buy the same stock.
@stifab

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