[RFC] - Rebase Tracking Feature for Tax Purposes
- Create a Rebase Tracking Feature for Tax Purposes
- Make No Changes
[RFC] - Should the Wonderland DAO have a Rebase Tracking Feature for tax-filing purposes?
Scope: Calculating taxes on rebase rewards is really difficult if it has to be done manually. By improving the platform to generate and provide stakers with a proper CSV list of all rebase rewards, would make it easier for those who don’t want to wrap and unwrap memo.
Objective: The main goal of this is to make it easier for us to calculate rebase rewards and taxes without having to manually track every rebase or wrap our memo which makes it more cumbersome to track our rewards.
Provide a High Level Overview: Rebase tracking can be confusing and tedious. Being able to generate a simple CSV of our staked time and rebase history would be very helpful for all of us who want to easily pay taxes on our gains.
Provide Low Level Details: By generating an automated .CSV list and being able to calculate our tax obligations will help empower us further by helping us to preserve our wealth and also invest with our tax obligations in mind.
Business and/or technical requirements of the implementation of the proposal:
The requirements for this implementation would be code added to the platform that calculates and automatically generates a Rebase Reward .CSV list that is only connected and viewable by the Wallet ID connected to the protocol. The list would calculate all rebase rewards, the amount in $TIME at the time as well as the index and any additional funds added to the protocol.
If there is already an easy way to do all of these calculations without having to wrap memo, please provide the solution. There are very few resources online that show how to easily calculate this without having to track it manually. Every video showing how to wrap memo is just so they can take out a loan against it and reinvest and I just want to simply stake, make money, and pay taxes on my juicy gains without the headache. If there is an easier solution to all of this please share! Thanks Frog Nation!
Where is the link for the previous DAO Discussion on this ? Normally there should be a post in the General Discussion channel about this before creating a RFC.
I’m sure a lot of people would like that, but it’s worth following the proper process since other members might have a solution or a reason why it is not possible to do so.
Also, name is the name of the proposal, not your name.
Edit: Nvm, looks like this isn’t in the RFC section lol… Might want to rename the post to include DAO Discussion.
I have just been wrapping MEMO to wMEMO and treating each stake/wrap as it’s own trade. Much easier to track.
Sorry I’m a newb, but I just realized its a feature that should be able to be easily implemented since the DAO is executing all the transactions already. From a programming aspect all we would need is just a few values added to a list that is associated with our wallet and accessible to us so we can have the proper documentation for tax time automatically generated for all users who need it. I think this will also help promote the legitimacy of the DAO and make it so that regulators don’t try to prosecute us $timeKeepers for not being able to provide the proper documentation. In America when a brown man gets too rich Uncle Sam will make sure he collects those taxes, and I want to make sure I pay my fair share on these juicy gains.
Yea but what about for people who don’t want to wrap? And what if you were staking for a while before you knew about wrapping and then you do wrap? What if you have some wrapped and unwrapped? What if you add more on your holdings and it’s unwrapped for a while then you wrap it? Then you can’t even use the calculator as easily.
This is where having an automatically generated list would be helpful. This is the boat I am in and I’m sure many other people are in the same boat.
We really don’t want regulators trying to outlaw DAOs for being havens for Tax Evaders.
I just wanna make this money and keep it without the government coming after me which they will do as soon as I go to purchase my lambo.
Oh man, I thought I had to pay tax on it when I took it out and brought it back to my bank,
I guess I have a ton of reading to do.
Or I could use some of that sweet sweet Lambo money to pay someone else to do it.
I’m not sure this should be something on the main Wonderland dashboard. Not everyone has the same tax laws, so how would you design a set-up that benefits everybody. I think this should be more of a 3rd party app that works with all of the DAOs. Maybe we could reach out to The Calculator Guy to work up something?
Bro, I just was thinking the same thing LOL. I can just pay someone else to take care of it
It would just be nice to have a little link that says “Download Rebase History .CSV” and then it just prints the list of all your transactions, rebases amounts and price at the time at the time. The fact that all these transactions have to be part of some ledger system it should be easy to pull the data. And when a Wallet ID connects to it, the list is generated based on the Wallet ID. I think this would be the most secure way to operate it vs. having to use a 3rd party service. This is the kind of documentation that would be needed in any tax situation regardless of jurisdiction.
My crypto currency was recently lost in a boating accident. I have no more money, I overinvested by A LOT.
But on a serious note, it would be nice if someone made an open source or at least cheaper tax tracking software for crypto. I think we should prioritize other tasks tho.
*** Solution Found*** You can use Snowtrace.io to get the information you need lol.
I think you guys keep talking about the rebase being taxable income will definitely make it come true right now the rebase isn’t treated as a taxable event by the IRS but yet you guys keep giving them ideas on how to tax us more efficiently please stop doing the IRS job for them
I mean IRS doesn’t control the world.
I don’t understand why anyone would have to pay tax on a rebase that is staked, if your cashing out your rebases, you should have an idea of how much money you made, I honestly hope no $TIME and no money is spent on this feature. What’s the current rate of tax on a $TIME token where you live, unless your cashing out, your only being paid in TIME, that APY, is $TIME , and until you have cashed out it isn’t earnings.
Actually, being paid in MEMO, which could have a very different implication given that MEMO is not technically actually worth any money.
But from what I’ve seen other staking rewards are usually counted as income. So it would be base on my income bracket. However, I didn’t want to have to figure out if it’s taxable or not, so I wrapped it. That way I can deal with that transaction when I unwrap.
so wrapped, your rebases are being saved up. ok that’s very cool, I thought it was just a locking mech for leveraging, I could most likely learn a lot from the discord, but I got kicked out and it won’t let me in.
There is a post around about people having issues with the Discord, maybe try posting in there.
According to “help koinly io”:
Staking refers to sending coins to a third party and receiving rewards in return. This third party is commonly called a “Staking Pool”. You still have control over the coins sent into the staking pool so for the most part such sends/receives are not taxable.
Receiving staking rewards
Whenever you receive a reward, you should tag the Deposit transaction as a “Reward”. This way Koinly will be able to summarize all reward transactions in your Income report so you can declare it in your tax returns.
Sending coins into a staking pool
Koinly will not import such transactions for most blockchains like Zilliqa, Elrond etc since these are not taxable.
However, if you are using Ethereum or Binance Smart Chain then these transactions will get imported as withdrawals. You should find these and tag them as “Sent to Pool” to prevent gains from being realized on them.
Read the rest on the link above.
So we are not receiving rebase to an account, as dividends do (even when u have automatic reinvestment of dividends they do touch your account before being reinvested to the same stock, that’s why they are taxable).
Rebase never leaves Wonderland.
Anyhow, I can not find any services that could trace the rebases, and I don’t know what to do for taxes with that. Have staked for exactly 1 month and now I have wrapped the MEMO to wMEMO.
From Koinly support:
“We have a lot of integrations planned for December.
These include FTM, AVAX, Terra, Cosmos and Celo.
I agree. I will only pay when I convert it to USD and transfer it to my bank account. The IRS is not all knowing. I’m not trying to avoid paying taxes but when you give the IRS enough rope they will hang you.
Now got response from CryptoTaxcalCulator
Thanks for reaching out. We are currently working on integrating the Avalanche network and transactions, however, I won’t be able to give a specific timeframe right now as to when it’ll get implemented; as you can imagine, there are so many different exchanges/wallets so it does take us some time to add them.
This is on the list of our priorities so we will hopefully have this integration completed at the start of 2022. I will be sure to let you know when support for Avalanche is added to the platform.
In the meantime, you can still manually import this data via the Manual CSV Import:
Wonderland is a rebasing token that becomes MEMO when staked. When it comes to rebasing tokens, because the contract execution rebases on each epoch, it actually isn’t recorded in the blockchain history and we can’t track it properly.
We are looking to see if there’s more support for this but unfortunately for now, there’s no way for us to properly handle re-basing tokens.
So I got rebases for a month, and no one seem to be able to see/track or help with calculations.
If anyone found out anything - please share