RE: The Old Dog Discusses: The Tax Man Commeth! Will Someone be Building an App?
Very good topic for me. Mining is same as earned income and regular taxes can apply to it and capital gains occurs when our bought crypto appreciate in value and we cash it in our currency. There should be an app to differentiate the both as pointed out by your article.
The problem can be the conversion rate to the local currency to tax the mining part. I think it can be the average rate for the whole year.
But there can be problem again if we have paid taxes on mined steem for a year based on that year's average conversion rate, what about if the price of steem appreciate in later years? Do they tax again as capital gain? I think it is going to be problematic as cryptorich pals will go the courts and taxman have to face many challenges to tax cryptos!
It is a complicated issue. Here they require a time stamp with value as of Dec 31st. The problem is that the value value Jan 1st could be 50% less!
Here in Switzerland we don't pay any Capital Gains taxes but there is a wealth tax on any value over Frs 300,000. I'm not looking forward to working through this problem but I will be speaking to my accountant here in Switzerland to try and work through this in least painful way.
You could be a very valuable resource and reference point for Canadian Steemers and Crypto enthusiasts.
I will be back with more information over the next few months.