I’m invested in OHM (OlympusDAO). It’s a rebasing token where new OHM are created every 8 hours and given to current holders. The idea being that the value of each token should go down but the total amount of tokens you hold will go up and the total value greater over time. I’m not sure how to classify this. I don’t think it’s staking income… more like a stock split. But staking income is taxable and stock splits are not. So I’m not sure what to do
I don’t know for sure but it does sound like staking income. (even if it doesn’t sound like it to you, the tax consequences are the same). Maybe try asking this next time there’s an AMA.
Same issue here. In German tax law this would make a huge difference as Staking Income is taxable on received date. In case of OHM this would be financial disaster, as the you described @tron the value is likely to go down. So I am tempted to classify this as a hardfork, as it is technically more this. Any suggestions from @Accointing @Matt ?
Here is an interesting discussion from TokenTax on the topic with OlympusDao
TL;DR: rebasing tokens like OHM may get treated as stock splits.
Hey guys, I have a few questions and we will do our best to help you guys out
- Can you send me the CoinMarketCap link to your coin?
- Do these new tokens that come into your account every 8 hours. Are these trackable transactions or are they frictionless? If they are frictionless, please vote here: Frictionless Yield Coins Update Coin balances
- Whether there these are frictionless or not, we would like to help out for which classification you should use on these.
Here is the breakdown of classifications: Crypto Tax Classifications : Accointing AG
Here is how you are taxed per classification: You searched for classifications - The Hub on ACCOINTING.com
I believe it is frictionless as no new transactions are created but the balance goes up.
I’ve moved to using wsOhm as it doesn’t rebase and instead increases in value in proportion to the rebase value.
I have wrapped some sOHM as well, but then noticed (on another tax/coin tracking platform) that it was treated as a trade into another token, meaning the transaction was taxable using the cost basis of the sOHM.