New coins on the market like HOGE and SAFEMOON pay a % of the coin’s transactions back to the coin holders. So your coin amount in your wallet literally increased every few minuets just for holding the coin. When you sync your wallet the new total is brought in and tracked in the dashboard and in the portfolio performance. After I did a few trades I realized that the transaction totals were not keeping up with what was shown in the dashboard and in the portfolio performance. What’s the plan to better track these kind of auto-yield coins? It seems like CoinTracker is tracking them two different ways. When I manually attempted to add the difference between what I bought vs what I earned through auto-yield, I showed over the total coins than what I actually had in may wallet. There are now dozens of auto-yield coins, like SAFESTAR, FEG, ELONGATE, etc, where your wallet totals just increase over time. Please let me know how to address this and what CoinTracker plans to do.
IDK but there’s already a problem with staking rewards inflating transactions and bumping people to higher tax plan tiers, so that would need to be thought about to. But I am seeing the same behavior, with SAFEMOON and SAFEGALAXY - even though SG doesn’t register as a known coin yet…
Edit: Also I wonder in the end how much it matters, you gotta pay taxes on stuff you get for free and your cost basis is zero regardless. But it would keep transactions for reconciling right when you do go to sell and you’re selling more than cointracker knows you have I guess.
My fear for the taxes is when you count the cost basis for the coins you receive every 10 minutes for example. Two days ago I received ~5,538,817 SAFEMOON coins in my wallet with a cost basis of $0.00000031. But the price went up yesterday and I received ~6,140,733 for a cost basis of $0.00000041. Am I overthinking this? Is this type of tracking necessary? Or does it only matter the price of the coin when you sell?
Well since it’s all free the cost basis is zero every time… so when you do to sell you pay taxes on the full (earned) amount anyway.
I get it now, makes complete sense, thanks for the reply.
I do have one follow up. Yes it’s all taxed, but in the US I’ve read that the auto-eared, like from staking, is treated as income and taxed at your income tax bracket. So If I get one token for free at $1 it’s taxed at my income bracket %. Then if that free token is at $5 when you sell, you’d pay capital gains on the $4 difference, since income tax and capital gains are different tax % based on different factors in the US. So these auto-yield coins make it really challenging to track all this with prices going up and down daily and receiving free coins every few minuets. It’s a nice challenge to have, but I want to track it correctly for my taxes. Thoughts?
Yea, I think you are to mark them as Staking Reward and in theory it does that the math for you. That is what I have been doing. You can select the dropdown arrow on the right of each incoming transaction or select multiple with the checkbox on the left then use the bottom center popup dialog to do in bulk a page at a time.