Based on a full 13 week power down i did, it appears to me that the power down is w.r.t. to what you had at the start of power down period.
I completed full 13 week power down and still had a bit of residual at the end.
The residual I had left at end of 13 weeks appeared on superficial analysis to be roughly equal to the SP and Steem I had earned for authoring and curation over the 13 weeks.
Ok, cool. Not an official confirmation, but seems to provide evidence towards supporting the answer that what is powered down comes from before the initiation.
This is very correct. One has to restart the power down process again to include new payouts. The system powers down with the assumption that SP will not increase or Sp remains constant
I just initiated a power down of a specific amount of steem power
you actually choose how much you want to power down
for example you have 100 sp then you can chose with a slider how much you want say 30 sp and then click power down or start power down
you can chose all but steem will alert you to leave at least 5 steem power ...
As per the tax thing I don't know however
I think that as long as your trading and gaining steem inside the platform you are not subjected to tax
having said that
once you take it out to buy for something then you are subjected to tax
keep in mind that gov are still to regulate all this crypto world
I know people that profit a lot from crypto and they went to their bank and explained how their profit comes from so they don't get alerted and inform the police , am talking big money here
the bank accepted him and now he pays his taxes directly from the bank no problem! actually they were like: "you can put whatever amount you want here sir!"
that's bank of america for you...ehhh they stink a little but you chose your bank, sir!
it was probably over a year ago when I initiated mine. at the time, it was for 2 years, and I don't recall being able to choose an amount - but it just started the whole amount.
I think that as long as your trading and gaining steem inside the platform you are not subjected to tax
having said that once you take it out to buy for something then you are subjected to tax
sounds like wishful thinking, based on all what I've read/heard, although I'd love it to be true.
consensus seems to be you're due income tax on rewards earned, and capital gains/losses when sell for any other pair, whether crypto or fiat.
hence, the name of the game becomes figuring out the particulars of how all these differences in payouts works, and how to best calculate precisely to minimize the burden.
I suppose one other way would be to look back and see when the weekly distribution “payouts” began...
Would you know if there is any other way of seeing such a history of Power Down distributions/payouts besides scrolling all the way back through the wallet...?
Looks like that the powerdown form now automatically deducts 5 Steem (that has to stay on the account) from the available amount.
Then you can choose how much to powerdown:
A fixed weekly rate :)
I suppose it was the same (fixed rate) before the change from 104 to 13 weeks.
About the taxes. In Slovenia, you have to report your profit when you exit the crypto world and actually buy some fiat. As long as you trade between cryptocurrencies you don't have to report it.
OK, I have to correct and extend my first answer. It is wrong :)
As a physical person you find yourself in one of the following three situations:
you are being paid in crypto -> the fiat value at the day of payment is added to your income report
you sell crypto at the exchange for fiat -> this value does not go into your tax report
you mine crypto -> the fiat value at the day of payment / capital gain is added to your income report
The question in our case is -> is income on Steem considered payment for a service, a mining operation or anything else :) I don't know.
Tax inspector might see it as an income. They tend to be biased in this way :)
About the rate of the taxes. There is a system with 5 classes and you pay progressive taxes according to the class you fall in after you add all your income and deduct all your bonuses.
I think that the second class is most common with upper income limit after deduction of bonuses being 20,400.00 €. You would pay 1,283.41 € + 27 % above 8,021.34 € of income.
Would pay because after the tax amount is established as above, your monthly tax payments are deducted and thus the final amount is reached. You might actually get some money back if you were paying too much with your monthly sallary payments :)
It is not so complicated as it looks. And the software takes care of it. Our IRS does the report for you and you only add to it if some income is missing or when you find some bonus not accounted for. Pretty straightforward process ...
I am sorry that this lengthy explanation doesn't help a bit with your original question :)
Haha, no problem. I appreciate different perspectives on the matter, as still trying to piece together the optimal accounting strategy. :-)
The question in our case is -> is income on Steem considered payment for a service, a mining operation or anything else :) I don't know.
I talked to a lawyer last week, and we kinda came to the conclusion that anything earned on Steemit would pretty much be considered income. However, there may be some room for creativity in its accounting - because as half is paid in Steem Power, that might not technically be considered taxable - until a Power Down is initiated and you receive the actual Steem.
Of course, that could get seriously fucking complicated to fully record, especially if one weren't to do a full 100% Power Down.
I'm simplifying it in my case, documenting SBD received as income - and deferring the Steem (Power) until a Power Down is initiated next year or the year after. As the Power Down I currently have going was started last year - and I was living in Indonesia, thus no taxes filed last year - those Steem distributions could be considered capital gains - if I were to cash them out direct. Though with the conversions between different cryptos and capital gains/losses not actually realized until into fiat... headaches.
Well at least for now, I've got a simplified solution that should suffice.
I would simplify it further. I would say that you actually get your Steem / SBD income when you transfer it to your bank account and then report it in its fiat value.
The other question is, at least according to Slovenian tax laws, what happens when you don't exit Steem to fiat and go to exchange with it to buy BTC.
No, tax inspector would argue that any exit from steem is considered an income.
Eh, complicated ...
OK, enough for now. Thanks for reading my excursions into the fascinating world of crypto taxation :)
I am doing this for selfish reasons. Sooner or later I would have to do this exercise myself. For now, I am ignoring the issue...
Based on a full 13 week power down i did, it appears to me that the power down is w.r.t. to what you had at the start of power down period.
I completed full 13 week power down and still had a bit of residual at the end.
The residual I had left at end of 13 weeks appeared on superficial analysis to be roughly equal to the SP and Steem I had earned for authoring and curation over the 13 weeks.
So that is the basis of my comment
Ok, cool. Not an official confirmation, but seems to provide evidence towards supporting the answer that what is powered down comes from before the initiation.
Thank you. 🙏
This is correct @rok-sivante
This is very correct. One has to restart the power down process again to include new payouts. The system powers down with the assumption that SP will not increase or Sp remains constant
i upvote you yes friend
I just initiated a power down of a specific amount of steem power
you actually choose how much you want to power down
for example you have 100 sp then you can chose with a slider how much you want say 30 sp and then click power down or start power down
you can chose all but steem will alert you to leave at least 5 steem power ...
As per the tax thing I don't know however
I think that as long as your trading and gaining steem inside the platform you are not subjected to tax
having said that
once you take it out to buy for something then you are subjected to tax
keep in mind that gov are still to regulate all this crypto world
I know people that profit a lot from crypto and they went to their bank and explained how their profit comes from so they don't get alerted and inform the police , am talking big money here
the bank accepted him and now he pays his taxes directly from the bank no problem! actually they were like: "you can put whatever amount you want here sir!"
that's bank of america for you...ehhh they stink a little but you chose your bank, sir!
that's all I know about it!
ok, the protocol must have definitely changed.
it was probably over a year ago when I initiated mine. at the time, it was for 2 years, and I don't recall being able to choose an amount - but it just started the whole amount.
sounds like wishful thinking, based on all what I've read/heard, although I'd love it to be true.
consensus seems to be you're due income tax on rewards earned, and capital gains/losses when sell for any other pair, whether crypto or fiat.
hence, the name of the game becomes figuring out the particulars of how all these differences in payouts works, and how to best calculate precisely to minimize the burden.
informative post.I do not know about power down because I have just join steemit.
I am not so sure there is any tool to determine when a power down was initiated, if i found any i will do well to let you know
I suppose one other way would be to look back and see when the weekly distribution “payouts” began...
Would you know if there is any other way of seeing such a history of Power Down distributions/payouts besides scrolling all the way back through the wallet...?
Looks like that the powerdown form now automatically deducts 5 Steem (that has to stay on the account) from the available amount.
Then you can choose how much to powerdown:
A fixed weekly rate :)
I suppose it was the same (fixed rate) before the change from 104 to 13 weeks.
About the taxes. In Slovenia, you have to report your profit when you exit the crypto world and actually buy some fiat. As long as you trade between cryptocurrencies you don't have to report it.
cool.
what's the tax rate their when you DO cash out? is it the same as US/Canada, where INCOME is a standard rate, and then CAPITAL GAINS is about half?
OK, I have to correct and extend my first answer. It is wrong :)
As a physical person you find yourself in one of the following three situations:
The question in our case is -> is income on Steem considered payment for a service, a mining operation or anything else :) I don't know.
Tax inspector might see it as an income. They tend to be biased in this way :)
About the rate of the taxes. There is a system with 5 classes and you pay progressive taxes according to the class you fall in after you add all your income and deduct all your bonuses.
I think that the second class is most common with upper income limit after deduction of bonuses being 20,400.00 €. You would pay 1,283.41 € + 27 % above 8,021.34 € of income.
Would pay because after the tax amount is established as above, your monthly tax payments are deducted and thus the final amount is reached. You might actually get some money back if you were paying too much with your monthly sallary payments :)
It is not so complicated as it looks. And the software takes care of it. Our IRS does the report for you and you only add to it if some income is missing or when you find some bonus not accounted for. Pretty straightforward process ...
I am sorry that this lengthy explanation doesn't help a bit with your original question :)
Haha, no problem. I appreciate different perspectives on the matter, as still trying to piece together the optimal accounting strategy. :-)
I talked to a lawyer last week, and we kinda came to the conclusion that anything earned on Steemit would pretty much be considered income. However, there may be some room for creativity in its accounting - because as half is paid in Steem Power, that might not technically be considered taxable - until a Power Down is initiated and you receive the actual Steem.
Of course, that could get seriously fucking complicated to fully record, especially if one weren't to do a full 100% Power Down.
I'm simplifying it in my case, documenting SBD received as income - and deferring the Steem (Power) until a Power Down is initiated next year or the year after. As the Power Down I currently have going was started last year - and I was living in Indonesia, thus no taxes filed last year - those Steem distributions could be considered capital gains - if I were to cash them out direct. Though with the conversions between different cryptos and capital gains/losses not actually realized until into fiat... headaches.
Well at least for now, I've got a simplified solution that should suffice.
I am happy with this simplification too.
I would simplify it further. I would say that you actually get your Steem / SBD income when you transfer it to your bank account and then report it in its fiat value.
The other question is, at least according to Slovenian tax laws, what happens when you don't exit Steem to fiat and go to exchange with it to buy BTC.
No, tax inspector would argue that any exit from steem is considered an income.
Eh, complicated ...
OK, enough for now. Thanks for reading my excursions into the fascinating world of crypto taxation :)
I am doing this for selfish reasons. Sooner or later I would have to do this exercise myself. For now, I am ignoring the issue...