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RE: Oct 15 final 2017 tax deadline: Share your tax horror story with BlockTrades

in #blocktrades6 years ago

I also find the activity done with cryptocurrencies complicated when it comes to taxes given they are treated as property. This is unfortunate because it makes it more difficult for people to adopt them for everyday payments but I am sure we will get there one day to facilitate it. This is my first year on STEEM so my excel workbook already has hundreds of lines to determine my taxable income so it will be interesting.

Regarding my tax horror story, I recently moved from a foreign tax jurisdiction back to the United States. The first year I was literally half the time resident of both jurisdictions. Despite knowing my taxes, I hired an accountant which took 5 months to prepare. I submitted them with a hefty but manageable tax liability. However, the forms included receiving a big refund from one jurisdiction with a equal payment to the other. Unfortunately, everything went fine with the payment return but the jurisdiction that owed me money sent a letter months later asking for $80k in liability instead of the refund. The issue was they did not accept a prorated share of the deductions claimed due to my partial time in two countries. After a couple of letters, they finally applied them and processed a lower refund which made my payment higher. What was worst is that it took almost a year to get the refund! Imagine the Steem I could have bought with that!

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