Staking Rewards Cost Basis

Tax Questions
#1

Hi there

I’m reporting to the ATO (Australia) and staking CAKE to earn C98. When i redeem the C98, I mark each transaction as a Reward.

What I’m noticing in the dashboard page is when I expand the C98 coin, I have a Total Cost value in there that isn’t equal to 0. Instead, it is adding up the fiat value of each transaction upon redemption. I would expect that since I earned this from staking that the cost of my C98 would be 0.

I tried relabelling the transactions to Income as well but that didn’t change anything. Am I wrong in assuming that my cost of C98 should be 0? Is anyone able to explain to me why it isn’t supposed to be 0?

Thanks

#2

From a UK perspective, rewards received from staking are classified as income so would be valued at the fiat value when received.

1 Like
#3

ok great thanks for that. I think I got it. The reward’s fiat value at the time will go towards my taxable income and then any gains from thereon will be considered a CGT event.

#4

This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.