I'm trying to wrap my head around paying taxes for Steem profits. #Coding #Python
My problem is the taxman likely sees Steem and SBD profits as wages, but since it's a cryptocurrency I need to declare both the amount I have received, and the price it was at the time I earned it.
STEEM
As you see the prices have fluctuated quite a bit during this year. When I first joined, in September I barely made any profits, or at least it was quantitatively in pennies (or cents). I also had a long hiatus during which I didn't have any income from Steem.
Anyway, I was wondering if there is a way to retrieve a CSV containing every received Steem and SBD, plus any transactions I've made to voting bots like @minnowbooster or @buildawhale to see if I can report them as tax-deductibles.
Steem Dollars [SBD]
Since SBD jumped, I haven't redeemed my rewards, and I will probably keep it that way until the year changes, because I don't want to add them to this year's income. I might get a strike on my (unemployment) allowance and could end up making paybacks, although I am already thinking I will not apply for them for this month.
It'd be nice if there was something like a python script I could use that would ask me my tax rate, country, and how to interpret any transaction. fetch the transactions from the blockchain, and then calculate my taxes for me. I might be willing to pay & vote on Steem for such a script, and I would be there are others who'd do the same.
I'm not good enough programmer (I know little to nothing of programming) to code something like that yet, but if it were Open Source, I could easily provide translations and maybe some day even partake in some of the coding.
Do you think something like it could be done?
Me too!
I think it could. In fact I created a GitHub page as a development space for such a script. If you know Python and want to help me with this one, please come and join the project! (If you want to be paid, I can pay you a few ethers to help kickstart the process. But I do suspect there are others who might want to chip in as well.)
Tell me what you think about this!
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fucking taxes. yes its complicated and I don't know any tool for it.
We should just get rid of taxes.
pff the taxman, damn I'm still not sure how I am going to handle that :(
Yes I have that same dilemma. They say the rules for taxing cryptos are clear, but after I read the said rules I only got more questions about how I should go on about declaring them. I don't want to end up paying twice for what I earn on Steem for instance, just because it's a cryptocurrency.
I live in Denmark and have been thinking a lot about this. As far as I know the Danish tax authority regards crypto-coins as trade-objects and therefore not taxable, but you do have to pay WAT (tax on purchases) and you have to calculate that from the price that was current on the day you got it... Not sure about donations like Steemit actually so it is quite a problem. I would very much like such a program (but I am an artist and not a programmer :( )
The question is how to count taxes not just for Steemit , but also other cryptocurrencies. It is not really regulated at the present moment, but what i know is that some people are paying income tax when they withdraw to the bank account. In fact it is very good question how we can deduct it , i am sure there are law firms that are focusing on this matter.
If I sell crypto here in Finland, it is taxed as capital, but if I get paid in whatever be it crypto, eggs or computer equipment, it will be taxed as income.
The thing I don't quite understand is that if I get taxed income tax for receiving a cryptocurrency, then sell that said cryptocurrency, do I get taxed again, this time as tax on capital? I have not seen anyone explain how it works, or why it would work like that.
The following applies to Finland:
If you buy cryptocurrency and later sell it for fiat or exchange it for goods or services at a higher exchange rate, your gains will be taxed as capital gains. Losses in such exchanges cannot be deduced (I know, it sucks but that's the way it is.) It is very simple in that sense. Exchanging one cryptocurrency for another is not a tax event.
There are social media or games that use internal currencies. Activity rewards on them are taxed as income. Each and every instance of gaining access to such gains is a tax event. To calculate your taxes correctly, you need to know the exchange rate at each moment and tally everything up for the tax year in question and report that figure. Also, income from mining cryptocurrency is taxed as income according to the same principles.
Because calculating everything precisely in case of author and curation rewards on Steem is such as bitch and no tools exist to do it, I will resort to the next best thing, which is this using this calculator of money traffic on Steem that did a month-by-month conversion of everything in dollars. Just can't find it anywhere. Can anyone help? Or, better, suggest a better tool? In any case, in my case, we're talking about only some hundreds of euros.
Not sure what tool you mean, but here's a collection of some of the tools available for Steem, can you find it there?
I think it really depends on your local laws. The best thing to do , is not doing research yourself, but go to law firm. For example in UK, if i am not mistaken they pay only for income , although i might be mistaken. I have some law background, but i have no freaking idea how it works with cryptos. So yea as I said, bet solution - pay to lawyer and ask as many questions as possible ))
If you get paid in cryptocurrency for work, it will be taxed as income. It makes no difference whether you're paid in fiat or crypto. If you sell your possessions and get paid in crypto, you maybe taxed for capital gains. Now, if you sell, say, a used piece of furniture, it is assumed that you bought it for a higher price and sold at a loss. Hence, no tax liability. On the other hand, if you buy a flat and sell it later for a higher price, you will be liable to pay tax on your capital gains.
You do not get taxed for merely receiving cryptocurrency. If someone transfers you STEEM as a gift and the market value of that gift is less than the annual limit for tax free gifts (4000 euros per year or something), you will not have to pay tax for merely receiving it. If the value is above the threshold, you will have to pay a gift tax on the exceeding amount. If you get that sum, in STEEM, in exchange for authoring or curating content, you'll have to pay income tax. Now, if you exchange any of the STEEM for fiat (or goods or services) at a higher value, you will have to pay tax on your capital gain.
I hate taxes so i keep it silent for the moment.
It may seem to you I'm a bit partisan to advocate for taxes, but if it weren't for medical services paid for by taxes, with my background I most likely wouldn't be here talking to you. So all considered, I do think taxes are necessary.
I live in one of the countries with highest taxes in the world. I do agree they are needed but the rich dont pay as much, the companies who abuse the system dont pay them. If they all would pay we would pay less.
I'm really as confused as you are about the taxes. Though I don't have to deal with them for a while as I'm living with my parents, at the moment.
But there really should be an easy solution for this.
Do your parents do your taxes while you live there? I believe the tax-eligible age is at 16. I haven't checked it out, but recall it was so when I was younger.
No they don't, it's just that I don't need to cash out any of my crypto for a while because I don't need money to support my living. And I'm on my civil service so the day and food money I get from it doesn't get taxed.
You may not have realized it, but Steem rewards are pretty much considered income at this point, just like Bitcoin mining rewards. To the taxman it's a cryptocurrency, so they will apply their Bitcoin rules to Steem, and decide that since you get crypto for writing on a web service, it is a wage. I think you may argue it's all donations instead and only taxable as capital, but I doubt they will see it that way, after all you "worked" for it.
That's good to know.
What does tax eligible even mean? Fourteen-year-olds and older are allowed to work during school holidays and weekends here. Surely, their taxes are personal. Additionally, it is not very rare for even small children to receive inheritance and have assets to their name and thus be liable to pay taxes. It is a different matter who is entitled to handle their money affairs on their behalf.
Yes, I should have added a disclaimer: "I may be wrong." ;)
I'm sorry if that comment sounded rude.
It's okay, no offence taken. :)
Tax paying.... 😂 Too many people evade tax,most especially the footballers. There was a Neymar, Messi,Modric, Marcelo and Ronaldo's tax evasion. They were caught evading tax. I do not see tax as something easy to pay as I get tired calculating. Good luck with your tax paying friend....
i am still not able to do these things
@gamer00,
In my country if we says we are earning buy crypto, tax man will not question a more! Coz they don't know what is crypto :D
Cheers~
programming is very hard to understand