Vlog 197: Taxes and the STEEM blockchain - A tough puzzle.
It's the time of year again where the taxes will come round soon in the Netherlands.
The rules in the Netherlands regarding crypto holdings are slowly becoming clear and they are not bad.
Roughly, you pay taxes (1.3%) over whatever crypto you had on the first of January of any given year.
Of course, this raises a few problems because what is crypto worth at any given time? It depends per exchange or even per second.
I'm going for an approximation of the price and then I'm legit regarding my holdings.
But for STEEM it's different.
Some of my STEEM I bought and that's just like Bitcoin holdings (1.3%).
But some of my STEEM I earned with blogging. And that's raising some difficult questions.
I talk about it more in my vlog.
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Your tax system sounds quite different from ours in the UK.
In the UK I understand that we need to record the fiat equivalent of the income we receive in Steem (using exchange rate at the time the Steem was received), this amount is subject to income tax (at your normal rate) if you're an individual, and adds to taxable profit if it's a company.
Also, we need to account for changes to the value of any Steem and Vests that we have in our Steem accounts over the course of the tax year. Any increases in value are subject to capital gains tax as an individual, and is a chargeable gain for a company.
My tax isn't due until March so this is just my current understand and may change because as you say, it's pretty complicated/new.
I made a tool on SteemReports which might be helpful for some of this:
http://www.steemreports.com/financial-accounts-summary/
It's seems it a lot more complex in the UK. Good luck with that! Your summary tool is fantastic btw and I played around with it for a while. Very handy! A question, I can't get the info for Jan and Feb of 2017 to display. I tried for different users and it's the same. Could you help me out?
Hi man, I've updated the financial summary tool so it includes all of 2017, if you'd like to have a look: https://steemit.com/steemdev/@steemreports/improved-financial-accounts-tool
Man that is awesome, I'm going to check it out now!
Yeah, it's tricky to say the least! I'm afraid the tool doesn't currently cover those months. I started it thinking about my own tax situation and our tax year here normally starts in April. I will try and make time to collect the earlier currency data soon though, because a couple of other people have asked about that. I will let you know when it's there.
Hi Andy I'm new to all this and wanting to try it out to possible earn money in the future, I doubt I'll start earning any steem right away but this stuff just confuses the hell out of me. I've followed you for future help and thanks for putting that tool there hopefully it'll help me out when I figure it all out.
u should pay them with steem not euro , and ask them to hodl
LOL!!
@yassine04 The Taxing Authority would actually be better off, but I don't think they understand.............
yeah , its really complicated to calculate the tax percentage,,, its too volatile
😂 this is so crazy funny
Yea taxes time is coming.
It will be the same in the states.
I will check with my tax preparer.
Keep on steemin'
All of you hating taxes!!! I have solution to that!!! All we have to do is to move to my economical-system were money is printed as basic income to everyone + there is a goverments percent that is printed for goverments expences. This system could make crypto adoption so much easier, since there are no need for taxes, so all the shops and so on would not have to realy care too much about other currencies. They could just HODL!!!
I have a similar (I believe more nuanced) idea that I've begun working on. Would love to hear your thoughts: https://steemit.com/life/@halfjew22/proposal-for-extracting-value-from-positive-behaviors-and-its-imagined-societal-impact
LOL
I'm having the same problems, I guess i'll use CMC and move the mouse as close to december 31th 23:00 UTC = januari 1st 00:00 Amsterdam! Then convert it to euro's manualy!
I don't plan to put the author rewards in box 1, everything will go to box 3!
1.3%? Lol that’s a dream! We’re looking at 20%+ in the states.
I'm beginning to realise it's not bad at all compared to many other countries.
Please consider writing a post on what you know about taxes and crypto in the states.
Peace.
In our country, we have to pay 12% taxes on crypto (18% if you live in the capital city) and it fucking sucks. I would happily pay 1.3% taxes on my crypto, that is literally nothing compared to 18%.
I agree. What country do you live?
I live in Croatia.
Thanks @exyle! I had this discussion some days ago on a german thread. Here in Austria you only have to pay taxes, when you hold cryptos for less than a year. That sounds good if you plan to hodl anyway, but it´s horrible in real life, because the moment you exchange one crypto for another, you have to treat it like a sell! (And there are normal income taxes on it - so everything beyond 100k per year means paying 50%tax) Since I sometimes do several exchanges per day between cryptos, I would need to quit my job and do nothing else but documenting every buy/sell and the price at this moment - that´s more than anyone can handle! What makes things worse with Steemit is, that if done correctly, you will have to document every time you click on the "Redeem" button and the price of STEEM and SBD at the moment you click! This is simply undoable!
1.3% is pretty good, glad to see that slowly cryto space is coming under regulation which is really good for longterm growth...I guess the best option for government is to tax whenever cryto-currency is converted into fiat...
My guess is that if your country taxes cryptocurrency mining (Bitcoin Mining for example), then whatever the tax law says about that is an apt comparison for generating SP/SBD via blogging. It's an aesthetic difference, nothing more.
Proof of Work = Proof of Brain
With one you are using a pickaxe, with the other, a pen.
The real challenge is in calculating all the correct values for each small author and curation reward over the course of a year. But I imagine some intrepid young programmer could easily write a program to calculate that for people.