I have a couple of question regarding Staking Income. I think I know how to track it all in Accointing thanks to the helpful guides in the Hub, my question is more around how the income is treated when it comes to Tax.
I can see in the below article that Staking Income is a Taxable Income and is classified as : Cost basis: Value of the receiving date.
How does this work in terms of holding the Asset long term? For example I am staking REEF coin and receive staking income daily, is the cost (i.e price) of REEF each day added to the Pool of REEF and the cost (i.e total purchase price) weighted out as if it were a regular purchase of REEF?
Secondly is the taxable event only occurring when I dispose of any of the REEF? If I was to hypothetically stake for 5 years and never sell any of the REEF (original purchased amount or income) during that period, will the taxable event only occur when I sell any of the REEF in 5 years? Is the cost price of the REEF, which will be used to determine how much profit I made, averaged out by the original purchase price and the weighted daily price of the income over that period?
I hope that makes sense!