Elrond LKMEX taxation

Tax Questions
#1

Hi,

I’m trying to finalise my tax report for the year just concluded and I’m not sure how to handle LKMEX rewards from Maiar Exhange farming.

Should they be taxed when the vesting is completed? or the moment you receive them, even though you cannot sell them, you are supposed to report them as income? (assuming in this case they have the samve value of MEX on the day you received as cost basis)

If they are supposed to be taxed when vesting how are we supposed to manage them in Koinly?
Is anybody else running into this issue?
Thanks

1 Like
#2

I’ve got the same problem because there isn’t lkmex listed as option or atleast i havent found the LKmex only Mex from koinly. This is bad. I need to file my tax in the coming few days.

#3

From what I can gather it seems that we need to consider LKMEX as MEX and mark them as rewards assigning the corresponding MEX value.
This of course generates quite a high income considering the amount of LKMEX farmed at the very beginning.
If someone knows better I would be glad to hear what other options there are.
Cheers

#4

Hi @Catafa and @J_K !

First of all, how/when it is taxed really depends on the jurisdiction you are in and if in any doubts it is always recommended to reach out to a tax pro. We know of a few here in several countries Cryptocurrency Tax Accountants | Koinly

Regarding adding an LKMEX to our markets, I have just contacted our currency expert to add a token with that ticker. Once that’s done, I’ll get back to you and you will be able to sync/add those transactions. Note that the price of that coin isn’t tracked on coinmarketcap, so you would have to set the price manually from the UI (3 dots>>Edit>>Change worth).

Hope that makes sense. Talk to you both soon, cheers! :slight_smile:

#5

Hi All,

I have the same issue! I’ve been adding my LKMEX as MEX and as it stands I have a tax bill worth more than the MEX!!! (due to the high value and high rewards % in the early days). I’ve added everything as rewards and are subject to income tax. It would be great if no tax is due until we decide to unlock them? Some clarification on this would be great from a UK tax accountant!

#6

Thanks for the answer @Platypus-Sam_Koinly.
I’m based in the UK and I’m not 100% sure how those kind of transactions are managed. I’ll have a look at the page you suggested.

#8

Hey @Platypus-Sam_Koinly Any update on adding LKMEX to Koinly please?

#7

This is still a valid thread. Waiting for koinly to update elrond wallet integrations…

#9

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