| Event | Usually several steps, not one transfer |
|---|---|
| Fees / rewards | Ongoing inflow |
| Impermanent loss | Relevant only when realized |
You give up two assets and receive a share of the pool. That can be treated as an exchange for the LP token. Then the holding period of the coins given up ends and the LP token gets a new cost basis. Treating the deposit as a partnership is the exception and belongs with an advisor, not in the default tool.
Trading fees owed to the LP and extra token incentives are typically a current inflow. They do not silently increase the cost basis of the original coins. Without a separate booking they are missing or land in the pool value and distort the later exit.
A Uniswap transaction contains several internal transfers. Without a decoder you get four independent trades. chain.report decomposes common pool tokens and lets you classify unclear contracts in CleanUp: liquidity add, remove, reward.
The German tax administration rejects that for most DeFi pools. A silent method switch in the tool is risky.
A mere drop in pool value is not yet a realised loss. Realisation usually happens when you withdraw or swap the LP token.
Yes, once you can dispose of it. Accrued but unclaimed fees may not yet have accrued, depending on the protocol.
This guide structures the data issues and common German administrative practice. It is not tax advice. The assessment in your case stays with you and your tax advisor.
Classify liquidity contracts in CleanUp. Then cost basis, rewards and exit stay separate — and the gain is explainable.
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