Any easier ways to keep track of cryptocurrency for taxes?
Its no secret that many of us have made a little bit of cash on Steemit and will be paying taxes on those earnings. If you are a miner that may complicate things even more and make the time you spend doing your taxes increase exponentially. Steemit makes it easy for anyone to see what you have earned over the year and may make those with high balances more subject to scrutiny. Cryptocurrency and taxes is a very confusing subject so getting help may be key for many of us.
I am curious about how others are keeping tack of steemit earning for tax purposes and any suggestions that can help make the process a little less frustrating. Ideally using turbo tax would be nice, but I am curious if people have other suggestions. I am also interested to know if people setup a business when they get really big on steemit or just file as individuals? Any type of software suggestions that can make keeping track of steemit and mining earning would be greatly appreciated. Once states start to look at cryptos more and make better laws I expect to see better guidance.
I know some people may consider taxes as theft or the government imposing their will on individuals. I think that if you partake in society and use toilets, roads and any other infrastructure its your duty to pay taxes. The only beef I have is the complexity and confusion especially with cryptos when it comes to understanding and paying your taxes. We have to make our best effort to report and pay what we owe given the vague guidance given to everyone.
It also depends on the country. In Slovenia, cryptocurencies are not money and are not stock. So you don't pay anything if you buy and sell for more. It is "valued" as a moving object, the same as vehicles.
But things get complicated a bit, if you mine them, than you didn't buy and sell for more, but you got paid in them for "labor". So you are taxed the same as any income. And i assume that it might be the same with steemit. But as far as i know, they track you when you make a bank account deposit, but I've read some forum posts that mining should be actually reported every month. Problem is that as far as i know, we don't have a mechanism for reporting that other than opening an business.
The common theme is its fairly confusing for many people, lets hope with continued development and understanding we will gain more clarity.
I am paying on what I take out. The rest I see as a stock that hasnt been sold and can go up or down. So I just went to Coinbase and printed all my sells for last year.
That makes the most sense, but as you read more into it the laws get more and more confusing. It seems like they want you to track the value of it as you receive it and then show a profit or loss when you sell it. Not sure how they classify steem power though. That could lead to spreadsheets 900 pages long, and could classify as cruel and unusual punishment.
I think we'll just do it like Paul said and if they don't like our numbers, they can come back to us with theirs. 😊
The most important thing is to make a reasonable effort given the limited guidance regarding each type of crypto.
I was just wondering this tax issue, your post came just in time. I will also search about it. Please let us know if you get more about it.
Will do, hopefully more people will share their experiences and suggestions.
I won't have to pay taxes cause I don't earn anything lol..
Takes are fair but where I live, they're just used to complete the selfish desires of our corrupt politicians.
Sorry man, its always hard when we first start. I suggest participating in photo challenges and any other type of contests you have the ability to create content for. Politicians are very similar around the world, but not all of them are bad or corrupt.
It's all good..
I'm enjoying my time on steemit and I'm also learning a lot of new stuff
nice post @azfix . i like your Any easier ways to keep track of cryptocurrency for taxes post. thanks for sharing post
Thanks for telling about bittoine. It can cost at least the price.
25% -curation rewards
50% - tax
25% - author rewards
Lol😂😂😂😂😂
This link confirms your nice topic, thanks