When does chain.report automatically create a subwallet for you?
Some providers offer information on when you have placed your funds, for example, into staking or a yield vault. This allows us to create a subwallet to transfer the funds accordingly into this subwallet.
If an exchange does not provide such deposit information, unfortunately, we cannot create a subwallet, as we do not know the timing or the amount of the deposit. In this case (such as with crypto.com), a subwallet is unfortunately not possible.
What are the different tax assessments for assets in subwallets?
The automatic transfer of, for example, staking deposits into the subwallet is particularly important because we separate these assets for tax purposes from other tokens or coins on the exchange. This is relevant for the FIFO method - assets from, for example, a staking process cannot be sold. Only in this way can the tax burden be correctly recorded. Competing products to chain.report usually do not offer this feature.
How rewards are recorded
Depending on the provider, for example, staking or yield vault rewards are recorded in different places. At bake.io, for instance, you first receive the rewards back in your main wallet. Then, a transfer transaction marks the shift to the staking or yield vault subwallet. With other providers, the rewards might be recorded directly in the subwallet.
Please note that the balance of the subwallet and the main wallet differ and should be considered separately.
Subwallets? How Staking, Yield Vault, and Other Income Are Recorded
Keep this in mind to understand the reward transaction.
Updated over a week ago