How to file your Renzo (REZ) taxes with Koinly

Renzo (REZ) is a popular Ethereum restaking protocol for the EigenLayer ecosystem that allows ETH stakers to maximize staking yields. But your staking rewards will come with a tax bill. Whatever your investments, Koinly can help calculate taxes for hundreds of Ethereum dApps including Renzo. Here's how.

1. Sign up to Koinly and choose your country and currency

2. Connect Ethereum with Koinly to import all your trades safely and securely

3. Koinly identifies the cost basis of your tokens and coins, as well as your taxable transactions

4. Koinly calculates any capital gains, losses, and income from your taxable transactions

5. Koinly generates your crypto tax report - ready to help you file with your tax office, or hand it over to your accountant.

How are Ethereum staking protocols taxed?

Generally speaking, Ethereum staking rewards are subject to Income Tax upon receipt based on the fair market value in fiat currency on the day you receive them - but there are some countries that are an exception to this rule.

When it comes to Ethereum staking protocols though - there is a caveat because it all depends on how your protocol works. Earning new tokens will generally be seen as income and subject to Income Tax, but with some protocols, you'll receive tokens representing your staked asset(s) that accrue value instead. In these instances, no gain would be realized until you traded your tokens for your original asset, and as such, this may be viewed as a disposal and any gain subject to Capital Gains Tax instead.

Learn more in our DeFi tax guide.

Can the IRS track DeFi investments?

Yes, the IRS can track DeFi investments. All Ethereum transactions are recorded on a public ledger, available to anyone, including the IRS. The information available includes wallet addresses, all transactions associated with a given wallet, wallet holdings, and more. All the IRS needs to do is link you to a given address in order to track your DeFi investments.

You can learn how the IRS does that in our guide - can the IRS track crypto?

How to get Renzo tax documents

You'll usually report income, gains, and losses from crypto - including any Renzo investments - as part of your annual tax return.

To do this for your Renzo transactions, you'll need to identify the fair market value of any staking rewards in your fiat currency on the day you received them, as well as the value of any re-staking rewards. As well as this, you'll need to calculate any other gains and losses from other investments like REZ tokens.

If you think that sounds like a lot of hours of maths, you’d be correct - which is why most investors use a crypto tax calculator like Koinly. Koinly can calculate your gains, losses, and income for more than 800 wallets, exchanges, and blockchains.

How to import Renzo transactions to Koinly automatically

To import your Renzo transactions into Koinly, you’ll need to connect any Ethereum wallet you use with Renzo to Koinly. This is simple to do, you just need your public address. We've got instructions on how to connect popular Ethereum wallets on our integration pages - but here's an example of how it generally works.

In your wallet

1. Open or log in to your wallet

2. Select the blockchain you'd like to connect to Koinly - in this example, Ethereum

3. Copy your public address

On Koinly

1. Sign up or log in to your Koinly account and go to the wallets page

2. Search for and select the blockchain you'd like to connect to - in this example, Ethereum

3. Give your wallet a name - for example - Coinbase Wallet Ethereum

4. Paste your public address