Kraken ETH staking cost basis

Koinly Support
1

Describe the problem:
Staking and unstaking ETH shows as an ETH <-> ETH2 conversion and profit event in Kraken transactions. I’ve seen previous threads recommending to tag these as swaps, but the source token still has a recorded cost basis and therefore a target profit/loss value.

Given ETH/ETH2 should be a 1-1 value, is the only option to delete these entries and create manual transactions for something like to/from pool?

The issue being my portfolio shows a much higher overall ETH cost basis and lower ROI. While this means lower tax implications, I suspect it’s not correct :slight_smile:

Which exchange/wallet is this regarding?
Kraken

How did you import data into this wallet?
CSV export

What have you tried to fix this so far?
Tagging transactions as swap

2

Hi @Techn

Thanks for your message. :wave:t2:

You’ll still see a cost-basis for a Swap but in reality it’s actually carried over until later when you dispose of the tokens.

The only time the Swap tag won’t work is if your account is registered in the UK, as HMRC deems a things like ETH > ETH2 as a taxable event.

Feel free to reach out to support@koinly.io if you want us to take a closer look at your account though. :+1:t2:

3

Hi Carl,

Thanks for the response, sorry I did forget to mention I’m UK based. That’s really interesting, I didn’t realise the UK views the staking exchange as taxable that’s kinda mad :smiley:

I’m glad I unbonded the other day then, before the current tax year ends and next years threshold lowers again. May be a question for support but, assumung I don’t stake next tax year does the cost basis remain and therefore lead to smaller gains to tax?

Thanks again