Rebase Tracking Feature for Tax Purposes (DAO Discussion)

1. General Discussion
#2

Hello,

Where is the link for the previous DAO Discussion on this ? Normally there should be a post in the General Discussion channel about this before creating a RFC.

I’m sure a lot of people would like that, but it’s worth following the proper process since other members might have a solution or a reason why it is not possible to do so.

Also, name is the name of the proposal, not your name.

Edit: Nvm, looks like this isn’t in the RFC section lol… Might want to rename the post to include DAO Discussion.

2 Likes
#3

I have just been wrapping MEMO to wMEMO and treating each stake/wrap as it’s own trade. Much easier to track.

1 Like
#4

Sorry I’m a newb, but I just realized its a feature that should be able to be easily implemented since the DAO is executing all the transactions already. From a programming aspect all we would need is just a few values added to a list that is associated with our wallet and accessible to us so we can have the proper documentation for tax time automatically generated for all users who need it. I think this will also help promote the legitimacy of the DAO and make it so that regulators don’t try to prosecute us $timeKeepers for not being able to provide the proper documentation. In America when a brown man gets too rich Uncle Sam will make sure he collects those taxes, and I want to make sure I pay my fair share on these juicy gains.

#5

Yea but what about for people who don’t want to wrap? And what if you were staking for a while before you knew about wrapping and then you do wrap? What if you have some wrapped and unwrapped? What if you add more on your holdings and it’s unwrapped for a while then you wrap it? Then you can’t even use the calculator as easily.

This is where having an automatically generated list would be helpful. This is the boat I am in and I’m sure many other people are in the same boat.

We really don’t want regulators trying to outlaw DAOs for being havens for Tax Evaders.

I just wanna make this money and keep it without the government coming after me which they will do as soon as I go to purchase my lambo.

#6

Oh man, I thought I had to pay tax on it when I took it out and brought it back to my bank,
I guess I have a ton of reading to do.
Or I could use some of that sweet sweet Lambo money to pay someone else to do it.

1 Like
#7

I’m not sure this should be something on the main Wonderland dashboard. Not everyone has the same tax laws, so how would you design a set-up that benefits everybody. I think this should be more of a 3rd party app that works with all of the DAOs. Maybe we could reach out to The Calculator Guy to work up something?

2 Likes
#8

Bro, I just was thinking the same thing LOL. I can just pay someone else to take care of it :smile:

1 Like
#9

It would just be nice to have a little link that says “Download Rebase History .CSV” and then it just prints the list of all your transactions, rebases amounts and price at the time at the time. The fact that all these transactions have to be part of some ledger system it should be easy to pull the data. And when a Wallet ID connects to it, the list is generated based on the Wallet ID. I think this would be the most secure way to operate it vs. having to use a 3rd party service. This is the kind of documentation that would be needed in any tax situation regardless of jurisdiction.

#10

Dear IRS,
My crypto currency was recently lost in a boating accident. I have no more money, I overinvested by A LOT.
Sincerely,
DankWeed420xx

But on a serious note, it would be nice if someone made an open source or at least cheaper tax tracking software for crypto. I think we should prioritize other tasks tho.

#11

*** Solution Found*** You can use Snowtrace.io to get the information you need lol.

#12

I think you guys keep talking about the rebase being taxable income will definitely make it come true right now the rebase isn’t treated as a taxable event by the IRS but yet you guys keep giving them ideas on how to tax us more efficiently please stop doing the IRS job for them

2 Likes
#13

I mean IRS doesn’t control the world.

1 Like
#14

I don’t understand why anyone would have to pay tax on a rebase that is staked, if your cashing out your rebases, you should have an idea of how much money you made, I honestly hope no $TIME and no money is spent on this feature. What’s the current rate of tax on a $TIME token where you live, unless your cashing out, your only being paid in TIME, that APY, is $TIME , and until you have cashed out it isn’t earnings.

1 Like
#15

Actually, being paid in MEMO, which could have a very different implication given that MEMO is not technically actually worth any money.

But from what I’ve seen other staking rewards are usually counted as income. So it would be base on my income bracket. However, I didn’t want to have to figure out if it’s taxable or not, so I wrapped it. That way I can deal with that transaction when I unwrap.

#16

so wrapped, your rebases are being saved up. ok that’s very cool, I thought it was just a locking mech for leveraging, I could most likely learn a lot from the discord, but I got kicked out and it won’t let me in.

1 Like
#17

There is a post around about people having issues with the Discord, maybe try posting in there.

#18

https://help.koinly.io/en/articles/4928636-staking?utm_content=article_4928636

According to “help koinly io”:

Staking refers to sending coins to a third party and receiving rewards in return. This third party is commonly called a “Staking Pool”. You still have control over the coins sent into the staking pool so for the most part such sends/receives are not taxable.

Receiving staking rewards

Whenever you receive a reward, you should tag the Deposit transaction as a “Reward”. This way Koinly will be able to summarize all reward transactions in your Income report so you can declare it in your tax returns.

Sending coins into a staking pool

Koinly will not import such transactions for most blockchains like Zilliqa, Elrond etc since these are not taxable.
However, if you are using Ethereum or Binance Smart Chain then these transactions will get imported as withdrawals. You should find these and tag them as “Sent to Pool” to prevent gains from being realized on them.

============

Read the rest on the link above.
So we are not receiving rebase to an account, as dividends do (even when u have automatic reinvestment of dividends they do touch your account before being reinvested to the same stock, that’s why they are taxable).
Rebase never leaves Wonderland.
Anyhow, I can not find any services that could trace the rebases, and I don’t know what to do for taxes with that. Have staked for exactly 1 month and now I have wrapped the MEMO to wMEMO.

From Koinly support:
“We have a lot of integrations planned for December.
These include FTM, AVAX, Terra, Cosmos and Celo.
Best regards,
Petur”
https://discuss.koinly.io/t/avalanche-avax/1030/20

1 Like
#19

I agree. I will only pay when I convert it to USD and transfer it to my bank account. The IRS is not all knowing. I’m not trying to avoid paying taxes but when you give the IRS enough rope they will hang you.

#20

Now got response from CryptoTaxcalCulator
https://cryptotaxcalculator.io

Thanks for reaching out. We are currently working on integrating the Avalanche network and transactions, however, I won’t be able to give a specific timeframe right now as to when it’ll get implemented; as you can imagine, there are so many different exchanges/wallets so it does take us some time to add them.

This is on the list of our priorities so we will hopefully have this integration completed at the start of 2022. I will be sure to let you know when support for Avalanche is added to the platform.

In the meantime, you can still manually import this data via the Manual CSV Import:

https://cryptotaxcalculator.io/guides/advanced-manual-csv-import/.

Wonderland is a rebasing token that becomes MEMO when staked. When it comes to rebasing tokens, because the contract execution rebases on each epoch, it actually isn’t recorded in the blockchain history and we can’t track it properly.

We are looking to see if there’s more support for this but unfortunately for now, there’s no way for us to properly handle re-basing tokens.

=======

So I got rebases for a month, and no one seem to be able to see/track or help with calculations.
If anyone found out anything - please share

#21

https://help.coinpanda.io/en/articles/5510706-staking-and-mining

Staking rewards

1) Coins sent to staking pool

Staking works differently depending on which platform/exchange you are using, but in most cases, you will be sending your crypto to a third party and receive staking rewards in return on a daily/hourly basis. Sending coins to a staking pool is not a taxable event since you still maintain ownership of your assets.

Coinpanda will in many cases not import these transactions, but for certain blockchains like ETH/BSC, they will get imported as Send (no tag) transactions. You should find these transactions and tag them as Ignore such that Coinpanda will not realize any capital gains.

2) Staking rewards received

Coinpanda will in most cases tag all your received staking rewards as Staking automatically. If you see some Receive transactions imported from API or CSV files that are not tagged but should be tagged as Staking, you should then change the tag yourself. You can also contact us in the Live chat so we can check if we can update our integration to identify this automatically.

All Receive transactions tagged as Staking will be included in Section 6 - Income summary in your tax report.

3) Coins received from staking pool

After ending your stake, you will typically receive the coins/tokens back to your wallet or exchange account. Similar to coins sent to the staking pool, receiving coins is also not a taxable event and should be considered an internal transfer.

These transactions will be imported as Receive (no tag) from blockchains like ETH/BSC and you will need to tag these as Ignore yourself to avoid gains being realized.