Hi there 👋
This tutorial introduces you to the support of crowdloans operations and shows you how to label these operations.
Taxation:
Having used your tokens to participate in a crowdloan is not a taxable transaction because you have not made a taxable transfer (= transfer of a digital asset against something other than a digital asset or purchase of a good/service).
The value of your loaned cryptos is still included in the overall value of your portfolio.
💡 If you received derivative cryptos (example: BDOT), these cryptos are included in your overall wallet value instead of the originals to avoid duplication.
In exchange for your participation, you have or will receive tokens of the funded project. These tokens will be considered as earnings and will be considered as having been acquired for free.
Let's see below how to properly label your crowdloan transactions:
Labeling crowdloan transactions:
In this sample transaction, you loaned DOTs to participate in the GLMR (Moonbeam) project crowdloan.
👉🏽 So your DOTs are locked in for a set amount of time, and you get BDOTs back as proof of deposit.
The amount loaned is retained in your overall portfolio value.
The transaction to withdraw the loaned DOTs should be labeled as an “Other Withdrawal”.
(If you did not get any derivative assets in return, the transaction should be labeled as an “Add staking” to not decreases your portfolio value).
👉🏽 You have received rewards for participating in the crowdloan (GLMR).
The deposit transaction should be labeled as “Other gain”.
The tokens collected will be considered as having been acquired for free.
👉🏽 You are refunded your loaned tokens.
Waltio will record a deposit transaction.
(If you did not receive any derivative assets, the deposit transaction should be labeled as an “Unstaking” to not increase your portfolio value).
Here is a simple example:
You lend 10 DOT for a participation in a crowdloan
You withdraw 10 DOTs from your wallet which you deposit on a platform to participate in the crowdloan.
Case 1: You receive 10 BDOT as proof of your participation.
It will be necessary to label the withdrawal transaction as an “Other Withdrawal” on Waltio.
Case 2: You did not receive a BDOT.
It will be necessary to label the withdrawal transaction as “Add staking” on Waltio.
You will receive 100 GLMR as a reward for your participation.
You will need to label the transaction where you deposit your 100 GLMR as a “Other gain” on Waltio.
You are reimbursed for your 10 DOTs.
Case 1: You had received BDOTs.
It is not necessary to label the deposit transaction of your 10 DOTs on Waltio.
Case 2: You did not receive a BDOT.
It will be necessary to label the deposit transaction of your 10 DOTs as “Unstaking”.
If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! 💬
The Waltio team