I didn't stake with Stader because "not my keys, not

Question

I didn't stake with Stader because "not my keys, not

my crypto" and because hbar to hbarx would trigger a capital gains tax event, it's much better and simpler for me to receive hbar rewards and pay income tax on it. I don't understand why Hedera decided to use a third party (that also takes a cut) to give away hbar. How does it benefit the ecosystem? Why not just save that hbar for native staking rewards?

#cryptocurrency #english #hbar

0

21.07.2022

6 ответов

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Jeeptopdown

Increasing TVL encourages more DeFi development. It also brings more investors chasing the short term high rewards. Get them in the door and some of them will stay when they investigate the network and what it has to offer.

0

21.07.2022

eloquentplatypus Автор вопроса

Kris
The problem with native staking rewards that are p...

That's a decent point. Hopefully the rewards are paid weekly or monthly. I just sell staking rewards immediately to avoid CGT but the crypto I receive rewards for pays out monthly so it's easy.

0

21.07.2022

Jeeptopdown

eloquentplatypus
That's a decent point. Hopefully the rewards are p...

How does selling the rewards immediately avoid CGT? Your cost basis for those rewards is zero, correct? At least in the US that’s how it would be figured, right? And here we have to count the value of those rewards as regular income as well.

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21.07.2022

Kris

Jeeptopdown
How does selling the rewards immediately avoid CGT...

In Australia you only have to report if you've made a capital gain or loss. If you sell instantly it is recognised as income, and you pay income taxes based on the price when it hits your wallet.

0

21.07.2022

Kris

eloquentplatypus
That's a decent point. Hopefully the rewards are p...

I think it is going to be every day or 1440 minutes.

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21.07.2022

Kris · Accepted Answer

Kris

The problem with native staking rewards that are paid frequently is it is a nightmare to report to the tax office if you make a capital gain on them as you have to put the acquisition and sale date for all of them (in Australia). Potentially hundreds of events to input if they are paid daily. Stader is arguably much easier for this reason.

0

21.07.2022

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I didn't stake with Stader because "not my keys, not

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