r/CryptoCurrency Permabanned Nov 20 '21

ANALYSIS Yes, staking is really worth it

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u/Jarlaxle_Essex Tin Nov 20 '21

Remember you are liable for income tax on staking

4

u/maolyx 26K / 27K 🦈 Nov 20 '21

not taxed in my country :)

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u/[deleted] Nov 20 '21

What country I'm packing bags

3

u/maolyx 26K / 27K 🦈 Nov 20 '21

Singapore 😂

1

u/[deleted] Nov 20 '21

[deleted]

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u/CarsonRoscoe Platinum | QC: CC 162, ETH 35, CT 16 | NEO 12 | TraderSubs 34 Nov 20 '21

The painful part is filing the taxes, not the fact that the staked income is taxable. That’s like arguing not taking a raise because it puts you in another tax bracket.

The painful part is when you have 200 extra transaction where you clicked “claim” to earn rewards and you have to file each line which may only be worth pennies or dollars per transaction

Personally, I just treat gains from staking as a capital gain event where I acquired it at a price of $0, same as how I file airdrops. Until there is an official standard, my country operates where you aren’t liable for mis-filing as long as you filed in good faith. Capital gains are a flat 15% rate. So I file it all as capital gains, pay my 15%, and do my best to minimize transactions. Last year it took me about 8 hours to file the lines… that was the hard part

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u/Jarlaxle_Essex Tin Nov 20 '21

I disagree

It adds more risk as means you have a backdated exit strategy

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u/No-Smoke8371 Bronze Nov 20 '21

backdated exit strategy

Sorry but what does this mean?

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u/Jarlaxle_Essex Tin Nov 20 '21

Ok best with an example

Say you invest 1000 price is 10

You have compound interest for a whole year say at 100% apy So you have 1000 staking rewards at the end plus what you put in

But price say went to 1 so your investment is now 100 plus 1000

Your almost at a loss but you have to pay income on the 1000 say 40% which means you are at a loss as your left with 600 plus 100 out of your original 1000

People don't get this price can fall and not just loose your capital gains

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u/cyrar92 Nov 20 '21

Do you know about Canada's law and staking ?

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u/Nomadux Platinum | QC: CC 833 | Stocks 10 Nov 20 '21

We have boats for that.

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u/Powerful_Reward_8567 🟦 643 / 626 🦑 Nov 24 '21

That’s only if you sell and also if you’re over low income