It's a topic avoided by a lot, but don't think you can escape. Cryptos are in their focus already, and no one should think they'll get away with free money forever.
The tax report I filed for last year was finally accepted, and after someone asked for it I decided to publish the script I used to go through all the CSV reports from the services I used last year. The scripts probably won't be usable by you in their current form, but as a reference to start creating your own one they might be useful. I can also help you with your individual adaptions, but that'll cost something of course.
Code on github:
https://github.com/pharesim/tax-tools
files:
- fifo.py - first in first out profit/loss calculation
- lifo.py - last in first out profit/loss calculation
- author_rewards.py - gets a list of all post and comment rewards with respective btc and eur values
If that's too much for you and you prefer to simply use a webservice instead try out https://cointracking.info
We don’t have Capital Gains Taxes here, in my country, but we do have a Wealth Tax which can go up to 1% of your assets. I plan to put my crypto on my tax return. I’m just hoping we have a big crash in the price of Bitcoin on 29th or 30th December.
I think that since the tech tools are going to advance very fast it won’t be that hard to know who owns a particular wallet as soon as it is used in a real world transaction. If in 5 years you suddenly start using bitcoin, and it was not on your tax return, the robots will spot it.
On the other hand, physical gold and silver are not on the blockchain....
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Since most of my mine crypto promote anonymous transaction monero & sumokoin. I think I wont
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Buying Bitcoin or Litecoin, making occasional purchases with it, converting some to SP, once in a while buying a gift card from Gyft (essentially, converting crypto to fiat), using blocktrades to move from one altcoin to another -- what a freaking mess. And the IRS treats crypto as property but the Treasury treats crypto as currency.
Hoping for $1,000 Steem so I can just hire someone to sort it all out for me. 😅
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The only time I think to declare a taxes 0
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I have not earn enough to be eligible for tax. Anyway Malaysia only have capital gain tax for property only and not for other assets.
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I hope i will have a use for it in the future for sure, as that would mean i have meaningful to declare from crypto income, so thank you for sharing. But since i am just saving up Steem Power i believe i do not need to report it? :)
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I tend to agree, SP received and kept as SP should not be taxable, as it's not possible to pay those taxes without liquidating it, which could result in a forced loss. But I cannot give professional tax advice ;-)
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How it would be if u get always everything in 100% SP? Because SP can not be consider an asset ... or it can? You can not move it anywhere, no trade it ...
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It depends who is looking, in that case they might treat it as securities you are holding. it all depends on a mood of a tax officers and differs from country to country a lot.
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Thanks for the answer. Was wondering how it could be with something like SP.
Pd: as far as I know here in Germany cryptos are still not taxeables.
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You're wrong with that, sorry. The financial ministry gave out rules how to handle it last year, and it's bad (basically it's all normal income, taxable with your own tax rate)
http://www.gevestor.de/details/bitcoin-und-steuern-was-anleger-unbedingt-wissen-muessen-801380.html
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BTC and other cryptos in Germany are treated as assets and are only taxable when between buy and sell is less than one year and the limit of 600 € is reached. So, cryptos that you buy and hold for at least 1 year a free of taxes.
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Except those that earn interest and similar, so that's not valid for steem. Also, earnings need to be taxed the moment you receive the coins.
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I thought so, that it becomes taxable only when you convert it to a fiat currency and register it as a capital gain. And i think even tax office can not give a professional advice on this topic in many cases yet :)
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hello, @pharesim
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taxes and Cryptos don't mix just like oil and water.
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Wow, fascinating bro. Thanks for sharing this valuable information!
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Nice post, thanks for sharing.
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Thats the way out of our system
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Thanx a lot, this can be very usefull!the governments just wait for us to the corner for taking back what is "theirs"...
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Yeah I can smell a rat too. . .
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😂😂😂
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It was theft all right
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nice script...I will also use this script to file my returns also
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Thank you for sharing this!
This is my first year trading / investing in cryptos and I'm already dreading the coming tax filing season. Seems like I can't do anything in this country any more without reporting it to the Internal Revenue Service. Hopefully some day the boneheads in Washington DC will simplify the tax code. I'm not going to hold my breath though.
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Great post 👌😂 great Read too thank u xxx
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I'm here for the meme :))
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thanks for information! excellent pharesim
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Indeed many people do not like to pay taxes and some thought by enganging in crypto they would have dodged taxes forever! Sorry you have to pay your taxes.
Paying taxes shows responsiblity.
Jesus said something like this below in regards to paying taxes
Thanks for this web service cointracking.info,signed up and learning about it.
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I do not operate that service, just linked it as an alternative for the less tech-savvy
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But i guess it is worth using for the non tech-savvy folks?
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I would assume, but tbh I have no experience with it ;-)
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Thanks for your honest answer
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I m not sure if you are interpreting that verse correctly...
What if a government decided to instore a 99% tax ? Do you think the biblical view would still be to give unto Ceasar what belongs to Ceasar ?
The bible is actually very pro property rights in many regards...
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We as a crypto community should be fighting against taxation for as long as possible...to adhere to government regulation on crypto is to contradict the premise on which bitcoin was founded. My 2 cents #taxthat
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Before we can live by your reasoning the cryptos will have to do their part on the technology side and GUARANTEE anonymity
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That's true. I sense crypto will live in the grey area of regulation for some time
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Very informative thank you for sharing! Learning more about cryptocurrency every day can sometimes be uplifting and also can leave me in a middle to the future. Tax is a very good point where governments seize control of the money you earn, electronically governments can influence the market no? Declare what you can now and don't regret it tomorow 😀have followed you 👍
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Thanks for the information and advice.
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Nice..
Resteem from me
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hiii @pharesim, thanks for updates, very important issue you discussed here, about taxes on profit /loss, very useful article you wrote.there should be no compromise on taxes.
FOLLOW
UPVOTE
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Tax is important, yes, but when you make only 0.01 0.17 0.30 etc in most of your posting, that is super nothing 😅😅😅😅 Would make sense if you produce $200ish per posting ,holy moly 😂 We could all dream that !
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I feel like until we do not have to , I wouldn't
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Danke Dir :)
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It's going to be interesting to see how governments try to tax their citizens. The whole anonymity with crypto can definitely make it more difficult for uncle Sam to siphon your hard earned bitcoin
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As soon as you use an online service to trade, you're in the net. The blockchain reveals everything, it's just a matter of time until their tools are advanced enough to find most people. And they have like 10 years in most countries to get back at you.
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Yeah, I guess it also depends on which nation you hail from. Im sure some countries will be more diligent when it comes time to pay the tax man. Lets just hope we've all made enough money from our coins where the tax man gets his chunk and we can still afford our Lambo's
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I don't think Croatia will be able to make heads or tails of BTC for some time in the future. I wouldn't mind paying reasonable sum, just to keep my peace of mind.
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These blood suckers will never let us live in peace mate! Always on our back sucking for taxes!
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that's because you make lots of money.....Tax services won't waste their resources trying to track someone who makes some hundreds of euros a month
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Im not so sure about that. They came after my father 25 YEARS after some tax irregularity and emptyed the 2.000 € that he currently had on his account. At the time he was homeless and had saved that money from the few bucks that he was still receiving for his previous work to try to get a place (this happened in France). I can guarantee you if theres one thing governments are hellbent on it is enforcing their taxes, however small the amount.
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Are you in the United States? I almost always use Turbo Tax. Do you think that they are going to start taxing crypto in the next 5 years?
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I'm definitely keeping this in my back pocket for when Uncle Sam decides he wants his cut of the crypto money. Thanks!
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Congratulations @pharesim, this post is the seventh most rewarded post (based on pending payouts) in the last 12 hours written by a Superhero or Legend account holder (accounts hold greater than 100 Mega Vests). The total number of posts by Superhero and Legend account holders during this period was 19 and the total pending payments to posts in these categories was $1079.73. To see the full list of highest paid posts across all accounts categories, click here.
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The question is not if the authorities will try to tax bitcoins but when. Bitcoin is simply challenging the establishment, and the very liberal approach to the bitcoin in many countries shouldn't be perceived as the governments would put up with the bitcoin forever.
Many believes that Bitcoin at some point will be integrated in the current system at some point, if the bitcoin wish to stand alone, then it is challenging the whole establishment, and the question is if bitcoin is strong enough to take that battle, and if an even bigger part of the society wish to give bitcoin its chance.
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I dont know if my understanding is correct but I thought that all BTC transactions are available for anyone to trace the only thing missing is linking the wallets to the people, and they could figure that out soon and then maybe even retroactively ?
Besides most if not all exchanges require IDs now so how can you trade conveniently anonymously ?
It came out that only 800 people have declared Bitcoin earnings to the IRS at the moment so I am guessing that most people disagree with my logic.
Bitcoin owners having a large portion of libertarians I just can't see governments not doing everything they can to press the juice out of them
All those profits would manifest into influence in the world which is the last thing they want in my opinion.
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Hmmm...Quite a delicate issue.
If coin owners get to pay taxes, would Exchange sites also get to pay taxes?
Since most coins owned by users are transacted via exchanges and transaction charges are also levied via exchanges, i am so not sure how taxing coin owners, is a positive development.
Still musing, 'cause i still not sure whether i am for or against this issue of taxes on cryptos.
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nice post
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It depends to an extent on your income level and ability to disguise it using cash is one way as long as you don't go to far beyond a standard of living relative to your income level lol. That said good on you for paying your taxes and building a script to sort it out.
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pharesim you should register yourself in gibraltar...it's easy to have gambling licenses there.......you are not the worst person in the world but you are not the best either....you have to improve and you will be saved.....God exists, Christs exists....God bless you.
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@pharesim,
Wow friend that's a very useful article! This is the first time I heard about this amazing tool! Yeah I will not be a good fan of that github tool! Coz, I have no idea how to use it :/ But I will try that tool too!
Really appreciate your effort! Can you please tell me what is the language you build this calculator?
Cheers~
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Just wanted to say hi and thanks for stopping by. Followed :)
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Its okay to pay taxes wherein you see where the taxes are going. But yes, good point @pharesim
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Lol your meme just cracks me up every time!
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Nice to read your article. I also follow & Upvote you.
Please follow & Upvote me.
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Nice and Cool Stuff @pharesim
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Interessing post thanks for sharing
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Smiled 😃😃😃
Thank you for share it.
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Hello good post my name is Yudexis Jaume and I am from venezuela can you give a vote to my last post?
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I didnt even think about this as yet. Every country handles crypto in a different way I think still. Have to sort out how this works....HATE
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This is valuable information, even for newbies such as myself. Thank you.
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That is something we never want to think about... TAXES.
I have bought and sold so many different cryptos on so many platforms and exchanges that it is very confusing. I will probably look into the last option.
Followed, resteemed and upvoted because this is useful info @pharesim
Thanks for the info that nobody wants to talk about :)
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Well, first things first, You should pay your taxes and otherwise be a law abiding citizen.
So with that being said the ideal is crypto should be free from all form of govt regulations so if You have money in bitcoin. No one knows that you have money in bitcoin, and no one tries to tax the money that is in bitcoin.
But in reality you either live in a country with competent tax authorities, or one with incompetent ones. If your country has incompetent tax authorities, then there are a dozen other easier ways to hide your money. If you have one with competent tax authorities, they can follow the money and find it although anonymous protocol such as Zerocoin and the rest can give them tough time.
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