Questions reg. Staking Classification

Hey,

I’ve got two questions:

1.) How do I represent staking/unstacking within the wallet? Is it a new Withdraw when staking and Deposit when unstacking?

2.) (Builds on first question) There are cryptocurrencies like STEEM where I can stake it and in return receive VESTS (similar to LP tokens), which appreciate in value over time, which means if I unstake after a month I trade VESTS for original staked amount + inflation.

Is this inflation a new Deposit with “Staking” Classification?

Thank you!

Hi @dennd

  1. staking within the wallet is just shown as deposits that get classified as “staking”. A withdrawal towards staking does not get classified.

  2. You also classify the deposit transactions as staking

Hi,
But how do you calculate the gains then for tax?

Example:

1)I Buy 10 BADGER for 1 USD via UNISWAP
2)I stake 10 BADGER in the BADGER DEFI (Transaction->Withdraw out of my wallet)
3)I claim the Interest 1 BADGER (Transaction->Deposit into my wallet)
4)I unstake the 10 BADGER from the DEFI (Transactopn → Deposit into my wallet)
5)BADGER is now Worth 5 USD per BADGER.
6)I sell all the BADGER vs ETH

How does it now calculate 40 USD of Gain/Win for the Taxes?
How does it now calculate 5 USD of Interest i received?
How i can i classify the Withdrawals and Deposit properly?

Here is an article on how to go about it: Calculating Staking Rewards - Accointing Blog - Cryptocurrency Portfolio Tracking & tax Software. Let me know if it helps.

Hi @Rod,

so if I delegate for staking with a validator but the coins remain in my wallet only one of the staking classification types mentioned in this post is actually relevant for me? The Different Types of Crypto Transaction Classifications - Accointing Blog - Cryptocurrency Portfolio Tracking & tax Software Meaning I would classify rewards received from my validator as “Staking” and fees I pay for delegating or claiming as “Fee”?

Because the post mentions:

  • Staked: Use this classification if a transaction was staked.
  • Staking: Coins that you are using to stake.
  • Staking Income: Coins that you earn during staking.

And I was wondering how I would have to classify my transactions in practice, as the tool only shows me “Staking” as a classification type.

Thanks!

Hey @cpawl! You’re right. “Staking” is basically staking income. We will be updating that document soon. Thanks for the feedback.

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Is it staking or staked?

Let’s say I buy 10 ETH. (Order) I deposit 10 ETH from exchange to wallet. (Internal) Then I stake those 10 ETH (Deposit - staked) and earn rewards (Deposit - staking)

Correct?

So, there’s two aspects to that. One is, the coin that’s being staked and the second is the coin rewards that you’re receiving. So, the coins that you’re staking continue to be your coins, and if they were short-term you’re gonna stake them for a while like say two to five years. They’re not gonna be long-term held coins, it’s a great way though, to do that. You never, just when I put the coins into staking that is not a sell. It’s just me putting them somewhere else, okay? No tax events there. When I receive a reward coin then the reward coin is considered income at the fair market value in US dollars on the day that you received it.

That income from your earned rewards, you should classify as staking

Hi @Rod so when I stake coins I do not classify them at all? Tags like “staked” and “unstaked” would be really helpful, otherwise these coins are not showing up in the portfolio anymore. Are you planning to add these tags or should I work with an internal Staked wallet where I manually deposit and withdraw the staked funds?

Here are some guidelines for you for classifications: USA Specific Crypto Tax Classifications 2021 - Accointing.com

This fine document marks several items as having: “Cost basis: Value of the receiving date.”

Does that mean the same as:Cost basis: Value as of the receiving date”?

The way I speak, to speak of the Value of the receiving date" is to infer that “dates” have values. Calendar dates don’t have a particular monetary value.

Yes. Apologies. You are right. Some things get lost in translation. We have people from over 10 countries working in ACCOINTING.com. Sometimes, we miss out on grammar.

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