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10-year retention period extension for interest-generating coins - Staking, Lending, Farming


The extension of the 10 year holding period for crypto currencies is not applied in Germany

https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2022-05-09-einzelfragen-zur-ertragsteuerrechtlichen-behandlung-von-virtuellen-waehrungen-und-von-sonstigen-token.html


If you still want to use the functionality you have to add your transactions like it is described here.


At the moment, coins can be set to a 10-year retention period by entering a combination of withdrawal and deposit with the "Staking" trade group.

 

For the coins that are sent to exchanges where all the coins deposited generate interest (e.g. BlockFi, Crypto.com and Celcius), the already imported initial transfer can be identified with the staking trade group. This trade group is then highlighted in blue. 


The purchase date of coins does matter but not the starting date of the staking. If you bought coins in 2018 an started staking them in 2020 they are Long in 2028 already and not only in 2030.


Here are two examples which lead to different results.


1. It is a little more complicated with coins that are bought or re-stacked directly on these exchanges. A pseudo transfer with trade group "staking" must be added here after the purchase or the staking income to take them out from the purchase pool (How does the CoinTracking purchase pool work?). It is important that you assign different exchange names for the separation of the depots (e.g. Kraken -> Kraken Staking). You can sum up your reward transactions if you re-invest your staking rewards as shown below to apply the 10 year holding period as well. You do not need to do this for each income transaction separately.

Short/Long report result: all are Long including the re-invested rewards


2. Transactions if your staking rewards are not re-invested:


Short/Long report result: only the originally staked amount is (still) short, rewards are long:



The initial transfer of coin sent to staking are added on a separate exchange. The rewards could be added to the separate exchange as well depending if they are re-invested or not as described before. Adding the trade group "staking" to those deposit and withdrawal transactions is mandatory. It has no impact on the filter if you add a trade group "staking" to the reward/income transaction. It is important as well to add the trade group "staking" again to the transfer transactions before selling those coins.


If your Coins do not appear as Long, please check the short/long report again with depot separation enabled:

Depot/Lot separation is mandatory if you want to use the 10 year short filter on all reports: Depot/Lot separation


If it is allowed in your country to exclude some rewards or even gains on rewards on your tax report you can do this as described here: Exclude Staking and other income rewards on tax reports


We are working on automatically setting entire exchanges to 10 years (without the extra transfers), this might be implemented in the next few months.


The topic about loans/lending is described here: Loans and their repayments
The Liquidity Mining topic is described here: How are Liquidity Pool transactions imported?


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