Question as to when to label Staking Reward

Tax Questions
#1

The simplest of LP/staking scenarios;

  1. Token X/Y creates Token X rewards
  2. that are then staked to get rewards in both X & Y.
  3. Which then are re-invested into 1. again

rinse and repeat.

at what point do you label X/Y ‘Staking Rewards’ without double counting them over and over as Staking rewards during this loop process??

#2

My understanding is that staking is not a taxable event, since you retain control over your tokens and do not dispose of them.
Each Reward transaction is an Income event.
So you should label all your staking rewards as Income, and then Stake them as Sent to Pool, which is non-taxable

(Just my opinion)
Stephen

#3

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