Well, I guess it is time to pop up the question...
I wanted to ask that for quite a long time, almost from the beginning actually, but I held back thinking, "let's see how it goes first".
Some may say that it is still too early for me to care about that, but as I watch with amazement as my value in Steemit is climbing into the over $5K zone. I think it is time.
There are people here who made much more money than myself, so I can't believe no one had to deal with this question so far, so I'd be happy if some of you could share their tips and insight. Oh... What am I talking about? So here is the question:
How do go about with your Steemit earnings in regards to tax payment?
I know the rules and regulations differ greatly between countries. Also, I am not asking anyone to disclose any private financial facts, but I'd like to know how to approach this matter, even in principle. I mean, to begin with, what are Steemit earnings. Are they income? Investment earnings? More like a Lottery prize? Or some mix of all these things that had to be split somehow?
Besides my personal stake at this, I think it is time to discuss the issue for the benefit of the Steemit community. If we want the community to grow significantly, we have to make sure that we can guarantee that the earnings of Steemit are legal.
So again, any thoughts and tips are welcomed.
(The picture of my cat is just a click bate)
Why would you even bring this up in your income taxes, it's a crypto currency. Since Steem isn't that widely known as for example bitcoin you won't be able to use it buying as much commodities. However you could convert Steem to Bitcoin and spend it without any government tax regulations involved. Otherwise keep it as an investment, and yes Steem itself is perfectly legal.
However it is taxed I am sure it would be a tax nightmare if you are transferring amounts earned/enjoyed as a windfall from the "mania" are transferred into an account with your tax ID attached to it. There are only so many gifts that are allowed to be paid to any one tax ID in any given year so large transfers of funds are going to be judged as some kind of income I'm sure. I'd ask papa pepper. I think he said he transferred enough STEEM earnings to build a house. I'm assuming that entire transfer was considered earnings by the IRS. Still, free house and "likely" free taxes thanks to steemit for many. I'm glad to see some people taking the opportunity to cash in before this bubble implodes.
@papa-pepper , would you care to comment?
If he does comment I want to apologize ahead of time if I assumed he did something...when he actually did not. I'd like to see the answers to questions you brought up though.
I agree with you man.