How to correctly book reward payouts

Tax Questions
#1

I sometimes claim rewards from a DeFi account. I obviously should tax this income. But Koinly tags it as a Reward, and shows 0 gain, and a market value “cost”. How do I easiest edit this so that it has a 0 cost and full gain? And gets it right in the future?

Thanks in advance

#2

Hi @Nilsson

Transactions tagged as “reward” are shown on your Income report if you have the “treat rewards as income” enabled in the Settings (on Settings page in your account). In this case, the transactions will have a cost basis which is their market price at the time of deposit.

If this option is disabled, these transactions will have a 0 cost basis and you will be taxed on the full amount when you dispose of them.

I suggest you talk to your accountant before making this change.

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