Long term gains for staking crypto possible?

Hi,

Imagine a one asset ETH staking pool. I stake 1 ETH into the pool at 1/1/2019 and in return I get deposited 1 xETH in my wallet, since at that time the ratio ETH:xETH is 1:1. The value of xETH steadily rises, e.g., through accrual of platform trading fees, then at 1/1/2021 I exchange my 1 xETH for 1.5 ETH, since the value of xETH has gone up. Now I essentially just exchanged two ERC20 tokens. I bought and held xETH for 2 years and then sold it for a profit of 0.5 ETH. Can I consider this 0.5 ETH profit a long term gain then? And if so, since my imaginary “xETH” is not tracked in Accointing, is it possible to account for this in Accointing?

Thanks!

Does 1 ETH = the price of 1xETH? If son, in the review tab, sync the value of xETH to ETH.
Then follow these steps :slight_smile:

In my example it only does so initially but then it becomes more valuable than ETH, as in the end I exchange 1 xETH for 1.5 ETH. So that approach would not work. Is my example not clear maybe?

Is there a CMC link for the xETH?
If so see this: Liquidity Pool Transactions - The Hub: Crypto and Bitcoin Tax Blog | ACCOINTING.com

If it is not on CMC, then I would classify the ETH to xETH transactions as ignored. Then follow the staking link I sent above.

The 1st option I believe would be a short term gain, and the 2nd option would be a long term gain (Assuming you held the ETH for more than a year).

In the 2nd option, only the original amount of ETH would be long-term. If you received staking income and recorded that on your Accointing software and held that ETH staking income for more than a year, then that would also be a long-term gain.

Get back to me about if you are going for option 1 or 2. I can also get out Tax Guy if you would like after we know your situation better :slight_smile:

I am happy to inform you that we now automatically add the coins listed on CoinMarketCap’s website. Unfortunately, if the digital asset is not available on CoinMarketCap we are currently unable to add it. When it has been added to CMC, we will gladly add it to our database.

If your coin is at a 1:1 value of another coin, please go to the review section and sync the value of it as described in this article:

Please consider voting for these 2 posts in the meantime:

Manual entry of tokens: Manual entry of tokens (those not listed on CoinmarketCap)
Missing currencies: Use CoinGecko API For Missing Currencies

Thanks for the reply. Looking at the options I think my best bet would be manual entry of tokens. I upvoted this now. Looking at the thread I’m not too hopeful, but still hoping you guys can accomplish this before mid April :slight_smile:

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Am I good to close this post? :slight_smile:

Yep should be good!

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