In this article we will explain to you how to correctly enter Staking, LP Staking and Masternode transactions in CoinTracking.
We have various types of income transactions to track your rewards.
You can exclude some of these from income and gains reporting, if permitted in your country, as described here: Exclude Staking and other income rewards on tax reports
This article is separated into three sections:
1) How to enter Staking transactions
2) How to enter LP Staking transactions
3) How to enter Masternode transactions
1) How to enter Staking transactions:
You can either track your income/rewards only. Or you can track the "send to staking" and then later the "unstake" as well.
1) CRO withdrawal from your wallet
Sometimes, staked tokens get converted into a different token ticker while staked. Examples of such tokens are ETH to ETH2, ETH to stETH or SOL to xSOL.
In such cases, you have two options to convert the staked tokens. You can either convert them with the transaction type "Trade" or with the transaction type "Swap".
We will show an example of an ETH to ETH2 conversion below:
Entering a Swap transaction to convert ETH to ETH2:
The decision on whether to use the Trade or Swap transaction type should be made in consultation with a tax advisor.
To avoid capital gains or losses, as well as a restart of holding periods, we recommend using the "Swap" transaction type. This will classify the operation as tax-free.
Entering a Trade transaction to convert ETH to ETH2
If it's a taxable transaction, the "Trade" transaction type should be used. By using the "Trade" transaction type, the holding periods will be restarted.
Please note: When unstaking the token, the process has to be entered in reverse:
Swap (non-taxable):
Trade (taxable):
2) How to enter LP Staking transactions:
1) LP withdrawal from your wallet
3) How to enter Masternode transactions:
1) If you invested in a masternode, where your coins leave your possession, please add these as "Spend".
2) Income transactions/rewards can be added as transaction type "Masternode".
Please note: If the coins do not leave your possession, you must proceed as follows:
We will show you this process using the example of an ETH masternode:
1) Withdraw ETH from your wallet
2) Deposit ETH into the masternode wallet
3) Income transactions/rewards can be added as transaction type "Masternode"
4) Withdraw ETH and income/rewards from the masternode wallet
5) Deposit into your wallet
