How to Enter (LP) Staking and Masternode Transactions

TL;DR:

Staking, LP staking, and masternode transactions can be recorded either by tracking only the rewards or by logging the entire process including deposits, withdrawals, and conversions. For tokens that change when staked (e.g., ETH to ETH2), you can use a “Swap” entry to keep it non-taxable or a “Trade” entry if taxable, which also resets the holding period. Masternode handling depends on whether the coins leave your control—if they do, record them as a spend plus income; if not, track them as transfers to and from the masternode wallet with rewards as income.

1) Entering Staking Transactions

You can either:

• Track only rewards (income entries), or

• Track the full process: send to staking → earn rewards → unstake.
  
  

Example Flow:

1. CRO withdrawal from your wallet.

2. CRO deposit into staking wallet (staking).

3. CRO income/rewards in your wallet or staking wallet.

4. CRO withdrawal from staking wallet (unstake).

5. CRO deposit back into your wallet.
   
   

Token Conversions While Staked

Some tokens change tickers when staked (e.g., ETH→ETH2, ETH→stETH, SOL→xSOL).
 You can:

• Swap (non-taxable): Keeps holding period, avoids capital gains/losses.

• Trade (taxable): Resets holding period, may create gains/losses.

Unstaking: Reverse the process — use Swap or Trade depending on tax treatment.

2) Entering LP Staking Transactions

Same steps as staking, but with LP tokens:

1. LP withdrawal from your wallet.

2. LP deposit into staking wallet (staking).

3. LP income/rewards in your wallet or staking wallet.

4. LP withdrawal from staking wallet (unstake).

5. LP deposit back into your wallet.

3) Entering Masternode Transactions

If coins leave your possession:

1. Add the initial investment as Spend.

2. Add rewards as Masternode transaction type.

If coins remain in your possession:
 Example (ETH masternode):

1. Withdraw ETH from your wallet.

2. Deposit ETH into masternode wallet.

3. Add rewards as Masternode.

4. Withdraw ETH and rewards from masternode wallet.

5. Deposit them back into your wallet.

Summary

• Use the correct transaction type depending on whether coins leave your control.
• For staking token conversions, Swap = non-taxable, Trade = taxable.
• Track full stake/unstake flows if you want detailed reporting. 
• Consult your tax advisor when unsure of the correct classification.