Need to understand how Koinly processes the cost basis for staking rewards when later sold with FIFO/HMRC (UK) individual.
example:
I have a Pool of say 100,000 Ada tokens I bought at 0.10c in previous tax year. But I have been receiving staking rewards every few days, including when prices were up towards $3. Average price at which received staking rewards was say $2.
After a year I have 105,000 and I want to sell.
Now ADA is at .80c.
So, if I am higher rate tax payer, I am paying 40% income tax on coins received at say $2 average (and some up at $3).
I then sell the ‘staking rewards’ 5000 at .80c. $4000
due to FIFO, I am given a cost basis of .10c and pay Cap gain tax at 20% on .5000 * 0.70c = $700.
But, I have also paid Income tax of 5000 x $2 at 40% = $1600.
so in this case I am paying $2300 in tax on $4000 revenue = 57.5% tax
is this how Koinly is calculating it ? if so, how can I make Koinly use the actual staking rewards paid out as the cost price for those sold AND stay within HMRC rules for pooling etc.
In that case it would mean.
Income tax = $1600 (unchanged)
CGT = $4000 (revenue) minus $10000 (cost) = $6000 Loss for offsetting