Chainlink Staking/BUILD tax implications

[Anonymous No.52518735]

from what I can gather, atleast for USA, these are the taxable events that occur directly from staking/airdrops:

1. receive staking rewards in wallet ---> fair market value of whatever you receive. taxed at ordinary income level

2. BUILD airdrop ----> same as above essentially. fair market value (if there is one, ie. market for coin) of airdrop when it hits your wallet, taxed at ordinary income level

hopefully the info above is correct. please let me know if i'm mistaken.

from what i gather, the above 2 are the taxable events directly linked to staking/build. doesn't take into consideration the cap gains tax you will pay (likely long-term) from selling your staking rewards. so basically there are 3 taxable events i think that the "never sellers" will have to pay if they're looking to "live" off staking:

1. staking rewards
2. build airdrops
3. cap gains from selling your link in order to pay off the taxes for the above 1&2

the "never sellers" will essentially be forced to start selling sell once link starts appreciating in price because the staking rewards will be more valuable (fmv and all). and since your cost basis will be low(ish), your cap gains will be significant

again, please let me know if I'm wrong somewhere along the lines

[Anonymous No.52518744]

lol burgers am I right

[Anonymous No.52518769]

>>52518735
kys faggot

[Anonymous No.52518771]

Is this the new fud now ? Not my fault mr tax man doesn’t know how to tax me on staking.

[Anonymous No.52518774]

cont
my question for everyone: what's going to be your approach here? immediately sell a portion of your staking rewards to pay off taxes? or for the rich anons, are you going to go out of pocket and into your savings to pay the taxes involved so you can just accumulate? this might work as long as the price of link is low, as soon as it starts ramping up price-wise, you're going to be forced to start selling.

also, is there a way to participate in staking without being involved in the build program? really not interested in receiving a bunch of shitcoins i never wanted in the first place. plus, imagine if you receive some build airdrops (let's say $1000 worth, just using that # as an example) when you were out of town or something. but when you finally see them in your wallet after a few days, the value of them has already dropped to $500. you're still on hook for the $1000 worth of income because that was the fmv of when you received them. so you got $1000 worth of shitcoins you never asked for that are only worth $500 now.

will we be able to opt out of this program? have no interest whatsoever in these build projects, most of whom will likely go completely bust. am i alone in thinking this build program is going to absolutely destroy anons financially? debating whether or not staking is even worth it due to the headaches it's going to cause

[Anonymous No.52518783]

cont

kys faggot

[Anonymous No.52518808]

if staking involves converting your LINK to another token like stLINK then that could be taxable too
the one upside of a lower LINK price is less realized gains that (((they))) can tax you for

[Anonymous No.52518823]

if you don't want to receive a bunch of "shitcoins", stake somewhere else faggot.

[Anonymous No.52518829]

>>52518771
not trying to fud, just trying to get some other anons' inputs

[Anonymous No.52518835]

>*profitable* staking is now the fud
Holy fucking wew lads. What a time to be alive.
Just how much are these Link tokens going to be worth? I'm starting to think it may be more than I once believed.

[Anonymous No.52518842]

I'M DEFINITELY NOT CONCERN TROLLING FELLOW ANONS AND I DEFINITELY SHOULDN'T KMS

[Anonymous No.52518850]

>>52518835

[Anonymous No.52518868]

>>52518842
not concern, simply trying to get a legitimate discussion going

[Anonymous No.52518872]

>be me
>be op
>be faggot
should I kill myself? I want some legitimate discussion about this topic.

[Anonymous No.52518914]

>>52518823
would you want to go into your own pocket to pay the "privilege" of receiving tokens like moab, lady luck, and gravelcoin? now imagine having to the airdrop tax for hundreds of projects like those

[Anonymous No.52518927]

>i'm definitely not a fudding faggot who should kill myself
>also ladyluck and gravelcoin serious discussion please
kys faggot

[Anonymous No.52518948]

>>52518774
Yeah the build shitcoins are a real pain in the ass. Where tf can I even sell them? I only use Coinbase and I don't feel like registering with any other cex or dex for the sake of tax simplicity. Just give me my link rewards thats all I ask. I think I'm just going to stake in v1

[Anonymous No.52518977]

>>52518927
>>also ladyluck and gravelcoin serious discussion please
do you honestly think that there won't be countless projects like those that will join build over time? and yes you will get their shitcoins

[Anonymous No.52519000]

kys faggot

[Anonymous No.52519039]

>>52518948
thank you anon for being the only one to give a serious response. and your question is legitimate. im sure most of these projects will be on obscure exchanges or dexes and be very thinly traded. the immediate rush to the exits will dump the price. it's going to be a major headache considering how many of these scammy airdrops there will be

i agree with you, wish i could just opt-into receiving link tokens and not bother with build. likely going to wait until v1 as well just to avoid the massive pain in the ass build will bring

[Anonymous No.52519044]

>>52518774
>immediately sell a portion of your staking rewards to pay off taxes?
This is the only solution if you actually earn a lot from staking. Say you earned US$200k/year from Link staking, you might owe $80k in taxes as income tax. You pretty much have to sell a portion of your stake to pay that off.
BTW, cost-basis method is EXTREMELY IMPORTANT here. If you use FIFO method you will get fucked up the ass if you initially bought Link cheap and then Link ended up going to $1k each. Because each time you sell some of your Link to pay off theincome tax, you have to pay additional capital gains tax on the massively appreciated Link.
Therefore, to minimise the additional capital gains tax, make sure you use either HIFO (highest in,first out) or LIFO (last in, first out) cost-basis methods. That way, your cost basis will at least be however much the value of the Link was when you received it as a staking reward, and assuming you sold it instantly then the capital gains would be 0 on that.
>t. spent a long time fretting about how the tax would work when Link finally moons and I;m living off staking rewards.

[Anonymous No.52519046]

>>52518977
Youve incensed the edgelord cultists. This board is not a great place for objective discussion on Link. Nubiz is essentially sportsball for crypto. Each cult blindly roots for their team while hating all other cults.

To your point, yes you have the tax ramifications correct. You’ll need to sell some of your rewards to cover taxes.

[Anonymous No.52519057]

>>52518948
You don't need to "register" on a dex lol. Have you never used Uniswap before? Assuming you're not selling a ton and there's sufficient liquidity you can just dump them there

[Anonymous No.52519082]

do the world a favor and kill yourself.

[Anonymous No.52519085]

>>52519046
Link cult and anti link Cult? Why would there be an anticult? Is that common? A pox on both their houses - both the cult and the anticult!

[Anonymous No.52519102]

>>52519057
I understand what a dex is. I just don't want my buy/sell records scattered over a hundred exchanges. All for $100 of shitcoins that are not needed in the first place

[Anonymous No.52519113]

>>52519044
thanks - i think immediately selling is the only way not to get completely fucked here. imagine if staking came out in early 2022 and you never sold your rewards throughout the year. you'd be on the hook for the fmv of the rewards when link was $15-20 in the early parts of of 2022. if link is only ~$6-7 come tax time you're going to be forced to liquidate a sizable part of your portfolio to pay the bill

[Anonymous No.52519134]

>>52519102
>I just don't want my buy/sell records scattered over a hundred exchanges. All for $100 of shitcoins that are not needed in the first place
If all the BUILD tokens are ERC20 then I believe it will all be summarised if you just look at your wallet address on https://etherscan.io/, even the when you swap them out on Uniswap. Can anyone confirm that Uniswap txs are recorded on there? I've never used it.

[Anonymous No.52519177]

>>52519102
agreed. don't want to even deal with that shit. waiting a few more months until v1 (even if it's half a year, who cares?) is fine by me. not trying to fud, just my opinion that the hassle is not worth it to me. nevermind the fact that i'd probably have to go into my pocket to pay the bill on these airdrops i dont even want in the first place

[Anonymous No.52519186]

>>52519113
>imagine if staking came out in early 2022 and you never sold your rewards throughout the year. you'd be on the hook for the fmv of the rewards
Yep. I'm glad I kinda missed out on the entire because it opened my eyes to the tax implications of this stuff haha. Definitely, if you don't have another income source that could pay off the entire Link income tax bill, then you MUST sell the Link immediately or be liable to be raped by tax agents if Link's price crashes. And as I said, make sure you use HIFO or LIFO cost-bases in your accounting method.

Regarding the BUILD airdrops, I don't think they'll be worth too much at the time of reception so you could always just pay for it by selling a fraction more of your Link rewards if you don't want to deal with the accounting hassle at that time.

[Anonymous No.52519204]

>>52519186
>*then you MUST sell ~45% of the rewarded Link immediately
fixed.

[Anonymous No.52519209]

my assumption is that this will be treated the same as dividend taxes

you'll owe based on it's value at the time it hits your wallet, again, i assume

[Anonymous No.52519275]

>>52519209
yeah, that's how staking rewards are treated
there apparently was a tezos couple who argued that they should only be taxed only once they sell their staking rewards instead of on receipt but the court didn't rule in their favor

[Anonymous No.52519285]

>>52519186
>BUILD airdrops, I don't think they'll be worth too much at the time of reception

do you report random dust you get in your wallet? my thought processes is, if the random trash later moons I'll report it and pay the fine. if it never moons and I get an audit, I'll pay the fine which shouldn't be much because the dust is worthless.

[Anonymous No.52519304]

Doesn’t matter not selling a single link…ever

[Anonymous No.52519332]

This new fud is boring

[Anonymous No.52519342]

>>52519332
discussing a legitimate issue is considered fud now? hmm got it

[Anonymous No.52519366]

imagine being so cuck-minded that you believe Kikes can see and hear everything you do in crypto and magically know what you did, not unlike Santa Claus :=)
>t. no wonder girls won't touch you guys, you guys are serious pussied and should kys if you pay taxes for crypto

[Anonymous No.52519420]

>>52519285
>do you report random dust you get in your wallet?
Generally no. These are unsolicited (and there's no "opt-out" of these) and if I never intend to use them then I don't see why I should pay tax on it. I received some scam token in my wallet the other day, I wonder if I'm expected to pay tax on that? LMAO.
Only the BUILD airdrops do I intend to report for tax purposes since I'm actually going to sell them at some point.

[Anonymous No.52519422]

>>52519366
Imagine making it beyond your wildest dreams until one day you get a visit from the IRS for failing to report the Cumrocket airdrop you unknowingly received 5 years ago.

[Anonymous No.52519432]

>>52519204
is that really the breakeven % after accounting for the staking, airdrop, and cap gains rates?

[Anonymous No.52519439]

>>52518735
I’ll be on a beach in Portugal so idc

[Anonymous No.52519472]

>>52519366
>Kikes can see and hear everything you do in crypto
That is exactly how it works. They're a bit overwhelmed now since crypto just recently exploded and the government is still figuring out the tech. However, in the future everything will be recorded on-chain (don't forget they're moving to CBDC's), and most things on-chain will even be KYC (so no hiding!), and I've no doubt they'll use some AI to monitor all transactions so they can tell when individuals (aka you) haven't reported stuff correctly. They will hunt you down eventually since we're heading for a dystopia.

[Anonymous No.52519473]

>>52519439
based. Anyone paying taxes on their crypto is worse than a Redditor

[Anonymous No.52519519]

>>52519432
>is that really the breakeven % after accounting for the staking, airdrop, and cap gains rates?
It was based on Australian requirements where the tax rate varies from 0 - 45% depending on your income.
You can technically halve the capital gains tax (CGT) rate if you hold the asset for over a year, but that doesn't apply to staking rewards which are treated as income and not capital gains, and it especially doesn't apply if you use the HIFO/LIFO methods I vouched for earlier ITT.

[Anonymous No.52519536]

>>52519044
is this true most reports i have seen say that staked income in tokens is new at the point you get them and as such you just need to pay the dividend taxes at the moment of receival
there is no mingling with your full stack for fifo rules as you can proof beyond reasonable doubt where which stack came from
and also yes sell the required% from the staked income immediately because if a year like this happens you can get fucked and have to make up for the lost funds

also this topic is almost impossible to have on biz as any criticism of link or staking is immediately shouted down by the retard brigade as fudders pressuring anons out of early access for themselves
that carpetbomb of a fud campaign really broke the minds of several frens unfortunately and was it all worth it to stop 5 redditors from buying in

[Anonymous No.52519545]

>>52519342
>discussing a legitimate issue is considered fud now? hmm got it
The way you are being facetious about it and concern trolling, yes

[Anonymous No.52519561]

>>52519519
yeah i figured it'd be ~40% for USA, taking into account ordinary income + long term cap gains rate. that doesn't even include the build airdrop tax due

[Anonymous No.52519572]

My wallet was seemingly manually blacklisted for early access despite meeting the criteria. I can't help but feel they just want to dox OG wallets.

[Anonymous No.52519589]

>>52519545
sergey locking the tokens you put in, which btw was never in the whitepaper, does indeed create some tax difficulties for some anons that requires some thought into the matter
but any discussion about it is quickly flooded by retards such as yourself

[Anonymous No.52519604]

>>52519589
You don't pay tax on the locked amount but the rewards. No-one is forcing you to put every cent of your liquidity into a locked contract you baboon

[Anonymous No.52519605]

>>52519545
attempting to have a rational discussion on the realities and ramifications of staking/build =/ concern trolling

[Anonymous No.52519648]

Hello fellow link OG's, I am also to much of a dumb Goy to understand the tax implications of Link Staking, and the Link Build Program. I think the best course of action is to immediately market sell all of my chainlink tokens right now, or at the very least every day for everyone in the foreseeable future.
It's the only way to be safe and I always use protection.

[Anonymous No.52519650]

if anyone from CLL is in here, please consider making the build program opt-in/out-out. so many anons are going to get financially justed because of it

[Anonymous No.52519713]

>>52519604
that is already called into question here in a way i didnt anticipate
if you have to fifo your tokens i could get mega justed with even a small amount in link
and most of the response you get to threads like these are retards such as yourself who equate every post that isnt sucking sergeys cocks are telegram fud

>>52519648
did anybody in this thread ever say to sell your stack you cultist fuck

[Anonymous No.52519741]

>>52519536
>there is no mingling with your full stack for fifo rules as you can proof beyond reasonable doubt where which stack came from
This is technically true but seems difficult to coordinate with tax software.
>also this topic is almost impossible to have on biz as any criticism of link or staking is immediately shouted down by the retard brigade
It's ridiculous. This isn't even FUD! It's literally just about tax reporting lmao.
>>52519561
>that doesn't even include the build airdrop tax due
I'm pretty sure the airdrops are taxed as normal income too.

[Anonymous No.52519782]

>>52519713
>if you have to fifo your tokens i could get mega justed with even a small amount in link
yeah, especially for those lucky OGs who got in between 20-50 cents. paying both the staking tax at ordinary income rate + long-term cap gains at what's close to a $0 basis
if link appreciates considerably and they don't sell their rewards they're going to be in a bad spot unless they have a well-paying job/other investments where they can draw from their savings to pay

[Anonymous No.52519848]

>>52519782
you didnt even have to be an ico og for that
summer 2018 for the risk takers and eoy 2018 when all crypto painted a clear bottom you could also get in at about 20 cents on regular exchanges
i did and was very thankful for the opportunity

[Anonymous No.52519856]

>>52519741
>I'm pretty sure the airdrops are taxed as normal income too.
yeah, that's why i mentioned that figure doesn't even take into account the build airdrop tax. seriously considering just holding off on staking until there is more regulatory clarity and guidance. 5% really isn't worth the headaches and trouble.

the "never sell" stakers are going to be forced to sell once link appreciates in price

[Anonymous No.52519880]

>>52519741
if you ever are at real amounts of usd equivalent value dont use tax software or accounts
insta go to the top taw lawyers your local has to offer, i did it last summer and altho the price tag is no laughing matter it pays for itself
accountants and accounting software generally uses a most safe approach while the lawyers being lawyers will actually call the tax office boomers into question when they will grossly overinterpret existing tax law into the new and uncharted domain of crypto

[Anonymous No.52519883]

>>52518735
This is the latest rat kike lie from the discord trannies
No tax burden till you sell

Literally fire up the ovens

[Anonymous No.52519910]

>>52519883
almost every tax jurisdiction in the world taxes you instantly the moment a stake reward drops with rules alike to dividends on stocks
dont go full retard there not everything is fud

[Anonymous No.52519917]

>>52519856
>seriously considering just holding off on staking until there is more regulatory clarity and guidance
lol
>the "never sell" stakers are going to be forced to sell once link appreciates in price
lmao even

[Anonymous No.52519940]

>>52518735
>>52518774
>>52519044
>>52519186
All this text only to get BTFO by my personal tax accountant who did my taxes for crypto staking rewards last two years and said the only thing I hve to pay is if I cash out the rewards LOL good attempt ESL differs but what your internet research shows about taxes and how they’re actually collected in the US are completely different. You would know this if you were an American and paid taxes but you are a paid fudder from another country

[Anonymous No.52519970]

>>52519940
>everybody on here lives in the usa
come on now anon you cant be this retarded

[Anonymous No.52519978]

>>52519848
grats man, you're lucky you got in so early. in your situation, after 4 years old holding, what's another few months-year of waiting for v1 or even v2? avoid the v.1 build fiasco, a potential staking black swan event, and have your coins in your own custody to take advantage of a potential blowoff top

[Anonymous No.52519998]

>>52519978
thanks, anyone retarded not to sell into the staking pump deserves to hold chainlink down to below a dollar. Not staking is the high IQ play here.

[Anonymous No.52520081]

>>52519910
Were putting you all in ovens
Every last rat fucking kike and discord tranny
https://htj.tax/2022/03/irs-taxation-of-staking-rewards/

[Anonymous No.52520084]

>>52519880
Well I've done enough research on it to know how it works in my jurisdiction (Australia). Unfortunately my country isn't the "Land of free, home of brave" so we pay more tax and the tax software is actually pretty accurate from what I've investigated. I'll check out getting a top lawyer when I eventually make it though, thanks for the tip.
>>52519856
>seriously considering just holding off on staking until there is more regulatory clarity and guidance
To me that seems a bit too conservative as the tax software can handle your accounting and all you have to do is instant-sell ~40-45% of your staking rewards. I mentioned earlier but if the BUILD rewards are ERC20 then you can track everything with just your singular wallet address and etherscan, no need to track separately per DEX.

[Anonymous No.52520111]

>>52520081
Anyway, for any Australian anons, we have to pay based on the value based at time of reward.
https://www.ato.gov.au/individuals/investments-and-assets/crypto-asset-investments/transactions---acquiring-and-disposing-of-crypto-assets/staking-rewards-and-airdrops/

[Anonymous No.52520128]

>>52518735
Who gives a fuck
Stop worrying about it

[Anonymous No.52520205]

>>52518835
>6$
Now cope

[Anonymous No.52520218]

>>52518774
lmaoing at burgers right now

[Anonymous No.52520259]

>>52518774
>let's say $1000 worth, just using that # as an example) when you were out of town or something. but when you finally see them in your wallet after a few days, the value of them has already dropped to $500. you're still on hook for the $1000 worth of income because that was the fmv of when you received them. so you got $1000 worth of shitcoins you never asked for that are only worth $500 now.
This cannot possibly be true. Is it? No way is it like you bought the coin at the price you received it. You just pay taxes on it when you sell it, there is no cost basis.

[Anonymous No.52520269]

Haha, u're wasting ur cash on the shit and then cry on 4ch on every topic. Be smarter, kids, check Bspin

> Strong casino with a BTC as the playing currency
> Coming giveaway with $15K Prize Pool.
> Transparency and Provably Fair.

[Anonymous No.52520297]

>>52519970
He literally says “at least for USA” in OP RETARD

[Anonymous No.52520308]

>>52520259
Staking rewards are taxed as income, not capital gains. So in a situation where you receive $1000 worth of staking rewards and sell them later when they are worth $1300, you owe income tax on $1000 plus you owe capital gains tax on $300

[Anonymous No.52520368]

>>52520308
How are random shitcoin airdrops income if I can't directly use them to buy food, gas, and utilities? You only owe taxes if you convert the shitcoins to USD. There is no way it is legal to tax the rewards as both income and cap gains, please kill yourself immediately.

[Anonymous No.52520406]

>>52519978
You've failed to make anyone sell all these years. You are failing to get any of us to not stake you retard gorilla.

[Anonymous No.52520428]

>>52520368
>There is no way it is legal to tax the rewards as both income and cap gains, please kill yourself immediately.
It is what they do in Australia. Yes it makes me want to kill myself.
>How are random shitcoin airdrops income if I can't directly use them to buy food, gas, and utilities?
Your logic is good, but the Aus government just wants to take our money to give to dumb fuck abbos and single-moms while they sell our property to Chinese nationals.

[Anonymous No.52520476]

>>52518735
why the fuck would it be taxable event if I dont claim the staking rewards? If the BUILD token would be worth 1m at the time of airdrop and then drop to 10 cent in 5 seconds would I need to pay tax for that 1m price? So wouldnt the most logical taxable event be when you actually claim the reward to your wallet?

[Anonymous No.52520488]

>>52518735
I knew this fudding faggot would pop up again. Didn't take him long. Earlier he was in another thread trying to persuade anons not to stake in v0.1 as they'd be liable for tax on their 7000 links and be unable to unstake to pay it. He's changed tack here and has made up some new fud.
It's all so tiresome, but at least he's dropped the other bs

[Anonymous No.52520570]

>>52519536
>sell the required% from the staked income immediately

wounder what all that sell pressures going to do to the token price

[Anonymous No.52520624]

Didnt read the thread. You get taxed on the value as soon as it touches your wallet.

So is your wallet getting spammed with build tokens? Tax, tax, tax. All the shit coin build tokens then crash? Too bad, you're taxed on the value when they first hit your wallet, unless you sell them at a loss.

[Anonymous No.52520652]

>>52520368

[Anonymous No.52520668]

>>52519000
Will you fuck off please.

[Anonymous No.52520683]

>>52520368
Only the base reward is taxed as income.
Only the $300 profit is taxed as capital gains.

[Anonymous No.52520775]

>>52519940
Hate to break it you big guy, but your cpa is wrong

[Anonymous No.52520810]

>>52520368
This is so far from being correct. And the confidence with which you say it. Vintage American ignorance. Amazing

[Anonymous No.52520844]

>>52520488
You guys are pretty paranoid. Talking about taxes isnt fud. Take a break from the computer buddy, its gonna be ok.

[Anonymous No.52520866]

>>52520081
this article is out of date and misleading. as mentioned earlier in this thread, the tezos couple's case was dismissed by a judge last month ie. they lost the case
https://news.bloombergtax.com/daily-tax-report/crypto-staking-tax-lawsuit-ruled-moot-after-irs-issued-refund
>A legal dispute pitting Tennessee taxpayers against the IRS over how cryptocurrency tokens are taxed has been dismissed by a Tennessee district court, because the refund sought by the taxpayers had already been issued and the dispute rendered moot.

Joshua and Jessica Jarrett initiated the closely watched lawsuit over Tezos tokens created by Joshua through the process known as staking, seeking a tax refund of nearly $4,000. The Jarretts argued that the tokens shouldn’t be taxed as income because they were newly created property. In staking, cryptocurrency holders are rewarded with additional tokens for lending their tokens and computing power to validate new crypto on a blockchain.

While the dispute concerns the 2019 tax year, the Jarretts claimed that they were entitled to a refund for all income taxes paid on the tokens. The IRS issued a refund in early 2022, and the couple rejected it. They continued to fight the issue in court, hoping to force a judicial ruling that staking gains only be considered income when new tokens are sold, as is generally the case for other forms of new property.
>>52520368
as much as it doesn't make sense, that's the guidance right now. it's like if someone came up to your house and dumped 10 lbs of rocks on your doorstep (wallet address), and if there was a rock market, you would be taxed on the fmv of those rocks even if you didn't ask for them

[Anonymous No.52520916]

>>52520683
Correct. The $1,000 is taxed at ordinary rates, which leaves you with a basis of $1,000. Then when you sell for $1,300, the capital gain is $300.

Keep in mind, to get the preferential long term cap gains rate in the US, you need to hold the coins for over a year. If not, its a short term cap gain, taxes at ordinary rates

[Anonymous No.52520942]

>>52520488
different person

[Anonymous No.52520950]

>>52518735
If staking works the way it works for the Linkpool token then you won't receive the LINK rewards on your wallet until you manually claim the rewards which would allow you to defer the staking rewards indefinitely until you relocate to a more favorable country.

For the airdrops if we are lucky you will be able to claim them to have a value of $0 at the moment of the airdrop if they are not yet supported by a DEX, CEX or CMC at the date of the airdrop.
Then you can hold it as a long term investment and not have to pay taxes on it until you sell years later.

[Anonymous No.52520990]

The staking Smart contract audit ended a few days ago and it is currently being reviewed by Chainlink Labs.
Once it passes the final review we will finally get more details about this staking program and how it works.
This should happen next week probably.

[Anonymous No.52521000]

>>52520950
thanks for the intelligent post. it'd be nice for CLL to put out some more information regarding the claiming/distributing process instead of keeping everyone in the dark until the very last minute

[Anonymous No.52521033]

>>52520950
that would be wonderful

[Anonymous No.52521042]

>>52520950
>until you manually claim the rewards which would allow you to defer the staking rewards indefinitely
that brings up a good question. would it be better to claim earlier to establish a lower basis and start the clock for long term cap gains? link going up is an inevitability (likely) so is it better to pay the piper now or kick the can down the road and probably pay more later? if you wait maybe some more guidance comes out

[Anonymous No.52521048]

>>52521000
Checked!
After getting burned out on the staking and CCIP announcements, Sergey does not want to release any information until everything is 100% ready and certain to not cause delays.
The review process for the staking contract audits should take 1-2 weeks.

As for the staking rewards for those who used another staking protocol on ETH it makes sense to manually claim to reduce gas costs.
If Chainlink sent you your rewards every month the gas costs would eat up most of your profits.

The original design for the LP token was to do it like this which they changed for LPL staking for this reason.
Even Scamcor had the same principle of having to claim your rewards manually to re-stake them.

[Anonymous No.52521058]

>>52520775
that doesnt say that you have to pay income tax on stake rewards when you receive them, it just says they would be taxed at the value they were when you received the rewards, not when you sell them

[Anonymous No.52521104]

>>52521058
Aneurism moment

[Anonymous No.52521123]

>>52521058
wtf?

[Anonymous No.52521142]

>>52520866
So you’re telling me that if I click a button and stake my link, then leave my computer let’s say for 5 years and never check it or do anything, that I will be breaking tax law because the government forces you to go through the entire process of reassembling the computer and logging into Wi-Fi, into my wallet to dig out the airdropped coins, to sell those on an exchange for usd and then transfer that to my bank where I can now pay the income tax on it even though I never intended to withdrawal anything for 5 years…. And on top of that it is taxed as BOTH income and capital gains. Seems pretty unconstitutional to me and will be thrown out in court easily imo. I’m a lawyer btw.

[Anonymous No.52521148]

>>52521042
My idea is to keep a minimum of 10-30% of my existing stack depending on the size and future plans not staked.
Then I can sell these long term held token when I need cash and let the staking rewards accumulate to compensate this if I sell.

The issue when selling the staking rewards come from the FIFO taxation method making you officially sell the token you staked instead of those you receive as reward.
To do this properly you may need to unstake your tokens and move them to a different wallet, and leave only the claimed staking rewards on your wallet to sell them separately if you want.

This is the type of thing you won't want to do more than once a year at best.
Personally I prefer to wait and let it accumulate like for Linkpool, because I expect the taxation of crypto to improve and become less painful with time and I may relocate to a more tax friendly country by the time I decide to sell some of the rewards in a few years.

But if you don't think you can take profit of this then the second best choice is to time moments when LINK is at a local bottom price to claim the rewards to reduce your taxation basis.

[Anonymous No.52521181]

>>52521142
>seems pretty unconstitutional to me

[Anonymous No.52521188]

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[Anonymous No.52521225]

>>52521142
https://www.natlawreview.com/article/lawsuit-challenging-taxation-cryptocurrency-tokens-generated-through-staking

[Anonymous No.52521303]

>>52521225
I admire your retarded dedication. This is the lowest of low tier fud and it's clear that you are low iq, but still 24 very wordy posts in this thread.

Hats off to you Mr Retard.

[Anonymous No.52521350]

>>52518948
I’m no expert on anything and this is not advice, but my accountant said that if staking rewards are in the same coin as I staked, I only have to pay taxes when I sell (and all the staking rewards do is affect my cost basis). But since the BUILD rewards are in a different coin, I think different rules apply. Personally I see the BUILD rewards as a liability that I would prefer to opt out of. Perhaps if there was some option to always immediately auto-liquidate, sending me the cash so I could set a portion aside for taxes, but I don’t want to worry about paying tax on a bunch of shitcoins that will go to zero.
> sell yourself
No way in hell, I didn’t buy Link to take on a second job, one that is far shittier than my actual job.
However, I’m not even eligible to stake with v0.1 and by v1 hopefully they have sorted this stuff. If not, they might actually finally have found their way to filter out at least some anons like me who are dead set on never selling, because I’m even more dead set on not locking myself down into managing the continuous selling off of a self-refilling shitcoin portfolio. This would only be an option if I were rich enough to hire someone to do it, but you’d need quite a lot of staked link before the profits from the BUILD coins support that salary.

[Anonymous No.52521380]

>>52521225
So they want to prevent a big case from reaching the Supreme Court but it most likely will anyway because of upcoming regulation. It’s not income, it’s a brand new financial instrument used by retail for long term growth through stable means - similar to a 401k or savings account. We have the right to invest our money and let it grow, and as long as we do not sell any of the earned income it should be allowed to sit there and compound faster and faster. The new laws have to recognize that traditional financial apparatus definitions do not overlay with the newest developments in the economy.

[Anonymous No.52521511]

>>52521350
the CRA is ambiguous but airdrops, staking rewards are NOT taxed at time of receipt. they are only taxed when you exchange them into something else. this is to prevent someone from minting 100M tokens, buying 1 token for 100$, gifting you that shitcoin and now you have a tax liability for 10 billion$.

i cannot imagine how fucked up the USA is to not understand this simple logic.

also i see the brainlets in here saying a lot of shit about "fair market value" without understanding the actual, LEGAL definiton. for it be considered as fair value there has to be an actual, open, liquid market for the fair market value to be accurate. if there is no market for the item you don't have to report it since its fucking garbage in the first place.

this is why living in leafland i dont give a single fuck about the BUILD program or my staking rewards if i keep it staked for eternity i don't pay taxes until i cash out unless trudeau chages the law.

>t. an actual CPA

[Anonymous No.52521521]

>>52521350
>Personally I see the BUILD rewards as a liability that I would prefer to opt out of
seconded. never asked to be spammed by shitcoins, nor do I want them. waiting until v1 to avoid that nonsense make a lot of sense (in my situation, not speaking for everyone else)

[Anonymous No.52521581]

>>52518835
>it's too profitable!

[Anonymous No.52521604]

>>52520950
this

[Anonymous No.52521613]

>>52521511
>LEGAL definiton. for it be considered as fair value there has to be an actual, open, liquid market for the fair market value to be accurate
look at the OP anon..
>fair market value (if there is one, ie. market for coin)
also,
>it's like if someone came up to your house and dumped 10 lbs of rocks on your doorstep (wallet address), and if there was a rock market

[Anonymous No.52521655]

>>52520866
It seems if the IRS refunded already, and that was the reason for the judge to dismiss, that this would imply the tezos couple were right and the judge didn’t see any reason to drag on with a case that had already been resolved.

[Anonymous No.52521663]

>>52521613
>land of the freeeeeeeeeeeee

[Anonymous No.52521746]

>>52521655
No, see this thread. The couple wanted a new precedent to be set. It was dismissed
https://twitter.com/CryptoTaxesGuy/status/1580950357085106176

[Anonymous No.52521774]

>>52518735
Big problem right here.
Better no become a multi millionare because of tax.
Much more smart to stay poor and fuck the tax man, right?
Hahahaha ... all the rich people living on their yachts, drinking champagne and flying private jets are really retards and fucked up, because of the tax man.
Such idiots.

[Anonymous No.52521776]

>>52521104
>>52521123
learn how to read you dumb esl niggers

[Anonymous No.52521798]

>>52518735
>once link starts appreciating in price
you're in luck then

[Anonymous No.52521811]

>>52521774
>Better no become a multi millionare because of tax. Much more smart to stay poor and fuck the tax man, right?
no one has said any of this? we're just discussing the financial implications of staking/build.

[Anonymous No.52521826]

>>52518835
>*profitable* staking is now the fud

Honestly are the FUD shills mentally retarded?

[Anonymous No.52521849]

You can use realized losses to offset taxes on realized gains.

How does this thread have 120 replies?

[Anonymous No.52521907]

>>52521849
capital losses are capped at $3k

[Anonymous No.52521928]

>>52521811
honestly this shit show just decreases the overall demand/need for the link token. They're paying with their shittoken to use the network.

Staker gets fucked with fair market value when they receive the reward. Raped once for paying income tax, raped a 2nd time when the shit coin dumps to Zero with capital gains/loss.

200 coins in the basket? Thanks that will be 200x more tax calculations than before.

Sergey literally making shit up as he goes along now.

[Anonymous No.52521932]

>>52521746
Right so they didn’t get the precedent, but they did get the refund. This makes me expect I would get a refund too, or rather that the IRS now knows better than to try.

[Anonymous No.52521933]

there was some good discussion in here, thanks
good luck on whatever everyone decides to do. stake, don't stake, wait for v1/v2, etc. everyone has their own situations to manage

[Anonymous No.52521937]

>>52521811
Well here in Germany you pay no tax at all after 1 year of hodling. Everything after 1 year is tax free.
Nice, right?

[Anonymous No.52522002]

>>52521907
Per year and those losses will last into the future and that only applies to other forms of income. So that isn't entirely accurate.

Capital losses can be used entirely to offset taxes on all capital gains in a single tax year.

The $3,000 is only limited to different forms of income that aren't capital gains.

[Anonymous No.52522010]

>>52518774
Anon..I. I know you are just trying to fud.but any anon that has some serious money and hired an accountant knows that the only taxes you own are when you cash out (most of the countries) and when you swap between cryptos( only some countries). If somehow you are getting taxed on more than that it's because your country law is retarded or inexistent and complying is irrational. My own accountant told me to lay low and pay the absolute minimum taxes to avoid suspicion until the (rational) legal framework is set in stone. And it may be 5 years or more bl. When every normalfag has to pay crypto taxes that's when you start taking it seriously

[Anonymous No.52522122]

>>52522002
sure but op seems to be talking about ordinary income. he doesnt sound like someone whose entire income is capital gains. I dont even know if there is any guidance on whether a staking reward could ever even constitute a capital loss. I would logically think it could not

[Anonymous No.52522164]

>>52518735
Couldn’t you put your Link holdings into a Roth IRA?
Then any proceeds from those holdings would stay in the Roth and wouldn’t be able to be taxed?
That way you’d only pay tax on whatever you pulled out.
That or open a company in a country where staking isn’t taxed.

[Anonymous No.52522183]

>>52519978
Always remember where you come from.
Link is biz. Biz is link. Link is our DNA.

Don't read.
Never sell.
Always stake.

[Anonymous No.52522589]

>>52522122
>I dont even know if there is any guidance on whether a staking reward could ever even constitute a capital loss. I would logically think it could not

You are trying I'll give you that. You have zero reason to think the BUILD airdrops are not capital gains/losses. MAYBE the LINK received from staking from is income but airdrops have always been treated as capital gains and losses.

[Anonymous No.52522606]

Staking will occur through cold wallets...just don't report unless you love self induced financial cuckery.

[Anonymous No.52522763]

UK fags:
"If a crypto trader or business receives an airdrop, any valuation increase will be added to the trading profits and will be subject to income tax, as well as NICs. But if an individual receives an airdrop, that will be subject to capital gains tax at the time of the disposal."
and
"According to HMRC, the GBP value of any tokens awarded at the time of receipt will be taxable as miscellaneous income with any reasonable expenses reducing the chargeable amount.

Individuals may want to treat it as savings income and claim personal savings allowance to further reduce taxes due. Speak with a tax accountant if you consider this, as capital gains tax rules may apply if you dispose of it at a later date."

updated 3rd Nov 2022
https://www.unbiased.co.uk/discover/personal-finance/savings-investing/uk-cryptocurrency-tax-guide-everything-you-need-to-know#:~:text=If%20a%20crypto%20trader%20or,the%20time%20of%20the%20disposal.

[Anonymous No.52522782]

>>52522763
So no income tax on Build rewards, assuming they are categorised as airdropped. Only CG at point of sale. Nice.