due to tax reasons I haven’t claimed any staking rewards to this point. My plan was to keep staking and when the time comes I would start claiming rewards on a weekly or monthly bases and only the amounts I need at that moment.
I had a look today and was a bit surprised that a partial claim is not possible at the moment and I could only claim the full amount. A Tax event of the whole reward pool would be quite a disaster.
Is there a possibility to get this change implemented? It seems that other members would appreciate this feature as well.
To give the flexibility on when and how to claim rewards is a big deal IMO.
Great idea! Who wouldn’t want the option to take a portion or all of your rewards, especially since any claims are taxable events.
You just claim on a periodic basis and that way you can distribute the taxes over the years. That was my idea of passive income. It’s our rewards, so we should have the flexibility to manage the claims how it best fits to our needs.
I am no accountant but I think the eventual tax rules, once they catch up, will be that rewards are considered income as they are earned not when they are claimed. The cost basis of the rewards would be linked to the market price at the time they are awarded and any sale of the ONE after would be subject to taxes on gains and losses based on the market value of the sale - the cost basis at award.
The closest thing would be a company that gives dividends of their stock every few hours to investors. Would be a nightmare to track, unless they were using a blockchain.
At first that is how I interpreted the current regulatory status, but this is how I see it now.
Unless I claim, there is no awarded coins or transaction saying that I have been awarded with anything. The taxable event is the claim, because with the claim those coins end up on my wallet and I have a transaction to show to the tax administration of my country.
Before the rewards are claimed, those rewards are a"potential" rewards (only a counter on my screen not yet on the blockchain) that is effective towards tax regulations only after the conis arrive on my wallet and a transaction exists as documentation (prove of provenance).
Till a reward is being claimed, there is nothing I have received so far. I couldn’t even document that coins even if I wanted to.
I hope thats the way it goes. Think we’ll collectively need to hire some good lobbyists around the globe.
We need someone for the Dev Team having a look at this and check if this can be done, from a legal and technical standpoint.
You can put this forward as a hip proposal in the validator section under governance.
Do I need to do a formal proposal or just present the main idea?
It would be nice if you can put it into the proposal format but there is nothing to stop you doing it any other way lol.
All proposals have a discussion / debate and require a feasibility review from the core team / devs before a vote can be considered.
Of course, I completely agree with the author of the topic. Besides, I want to add my opinion. Removal of accrual interest from staking is impossible for the same reason, perhaps because the developers have not completed the work. Thus, the contract does not support such a function. Deposit withdrawal with the option to withdraw 100% of the total staking deposit. Maybe soon they will finish the job, then many will be happy.