Wax poetic with me for a moment here. I get that this stuff is complicated and the government hasn’t established any real laws, because they don’t understand this stuff at all.
Firstly, For tax purposes is staking income and lending income considered the same. I assume liquidity pool income would be considered lending income, not staking. But going through my transactions its hard to separate which is which as they both reward the same token.
Secondly, On ShibaSwap I have staked lots of coins, as well as contributing to liquidity pools. When staking Bone, you get a “place holder” token called T-Bone. On Accointing t-bone is not tracked, but would obviously track 1 for 1 with bone in value. Under review in Accointing I have assigned t-bone to bone. This basically makes them the same coin, right? Yet while staking the price of Bone dropped precipitously as it was the new token being mined and large amounts were being created. My point being is that for tax purposes I would want these to be two different coins so I can realize that loss, but for day to day portfolio tracking purposes I want to see t-bone valued as bone.
It seems to me that I can’t manually add values to unknown coins, and also, that the system sees all unknown coins as virtually the same thing. For organizational purposes I should be able to group and name unknown tokens in the full data set.
I hope that makes sense. I’m trying hard to get all my booking keeping right so it’s solid for the end of the year. Accointing is the best software I’ve used yet and I applaud you, but I am still struggling to correctly account in the world DeFi and high risk “shit” coins.
Hey guys! I understand your frustration with the staked and staking classifications so just to clear this out from our standpoint:
all tokens that were staked=do not classify
all tokens that came as a reward for staked tokens=staking
The reason why we don’t have more strict guidelines is because there aren’t any and they are subject to the interpretation of the different jurisdictions. That bein said, here is an article from Bloomberg providing further context on the matter:
Now, the lender could be considered to have converted their crypto for another crypto when they “stake” their money into the liquidity pool and received another token they can sell elsewhere. That is a taxable event, so in this example, just as dividends are taxable, so are tokens generated from staking activities.
However, it’s not as straight-forward as that because this transaction can also be viewed in another way; in that what the lender deposited in the liquidity pool is still their money and the tokens they receive in exchange is nothing more than a receipt. That means it is not a taxable event.
Meanwhile, on the borrower’s side, it can be argued that depositing collateral and receiving a loan in a different token form is akin to an exchange transaction, so a taxable event. Of course, usually taking a loan is not a taxable event. However, the transaction on a DeFi is unique. Unlike conventional loans, it includes depositing one currency as collateral to receive a loan in another.