Writing Promt - Taxation - Write Informative Comments & Get Some Nice Upvotes
One of the ideas I had, for when I finally came back. Is doing various challenges that enrich the experience of as many users as possible, and tickle the writing muscles in a way that hopefully will improve the quality of posts here overall.
So in my first official Writing Prompt, I would like people to share their stories about one of the two certainties in life - TAXES.
Da rules are simple:
- Describe your experience with the government regarding taxes
- Reiterate what you had to do to comply with the law (documentation, time of payment, etc')
- Share how much (in %s) people who earn crypto (STEEM & any other coin) have to pay
Comments that are well written and informative will receive upvotes with varying % of VP.
As you know, the devil's in the details. So don't be afraid to bore people. Try to skimp as little information as possible. I really don't want anyone else to power-down, because they were ill prepared to deal with the law regarding taxation in their own country.
Hi, I want to share my experience with Crypto Taxes. I invested in Ethereum 2016 for under 10$ and I have experienced the craziest investment year of my lifetime. The price of Ethereum as everybody knows shut up to almost 1200$ but I didn't ride the way all the way up. I sold some of my Ethereum around 500-600$ and the Rest I will Hodl for longer.
Since, in Germany Crypto Investments are after 1year of holding tax-free when sold I didn't had to pay any taxes at all on my Ethereum trades. That is so awesome and I think the German Tax law is one of the best and convenient out there compared to others like the USA. I do had to tell the Tax department that I have hold and sold Ethereum, but since I sold it after 1 year everything was Tax-free!!!
Sounds like Germany is definitely a place to HODL.
How do they treat cryptocurrency earned from activity on STEEM? Can you elaborate on that part?
Thanks for that huge upvote!
So, with Steem I have no experience yet, because I still sit on my first purchases and haven't sold any for Fiat. My feeling is that Steem is a very complicated subject in terms of Tax, because if you look at it in detail we have many different income streams on Steem. We have income from posting, voting, beneficiary, bots and Steem Power interest. These income streams are technically all different in tax terms. Lets say capital gains could be the Steem Power interest rate and Voting. Where regular posting could be considered as an income from entrepreneur ship.
Not to mention that in general every transaction could be considered an tax event, and if you Power Up switch from SBD to Steem or even send a message or send Steem to somebody else could all be a taxable event. So in terms of tax Steem is really confusing and I bet as soon as we get popular there needs to be clarification on this. I hope for that regulators would consider it to be a utility token and lets say only converting to Fiat is taxable...but maybe that wishful thinking.
I hope my explanation is help for you. Looking forward to your feedback on this topic!
Heh, trust I know everything I need about how crypto is taxed in Israel.
It's more of a #RaiseAwareness kind of prompt, rather than to get people to teach me things xD
Actually even from speaking to different accountants here, I get different answers about how different sources of income will be taxed. One actually thinks that even vote selling is entrepreneurship, because 3rd party software is used.
Soon enough I'll publish my tax story in a comment, just so people could get a glimpse of what whales (or even dolphins) might have to deal with, if their government sets eyes on their coins.
I'm excited to read your experience about the Israel tax law...especially since you are a whale, that means you probably have the means to get things right with the help of a tax assistant.
Can I ask you something else? Why are you so optimistic about Steem that you have invested here? What makes Steem so unique compared to other crypt projects? And what is your biggest concern about Steem?
This writing prompt is indefinite.
So even if you see this post in a year, you will get an upvote for sharing your STEEM related adventures with the government.
This topic makes me nervous as hell. I am not looking forward to dealing with taxes! I hodl'd like a fool since early last year until now, and I ended up losing just under 1 million dollars rather than gaining anything.
I watched my investment go from a value of around $10k to $1M, then back down to about $7k. Easy come, easy go I guess.
If all goes well I'll have a good tax story by this time next year!
I recently wrote a post on a personal taxation experience (https://steemit.com/busy/@newageinv/experiences-continue-to-demonstrate-why-cryptocurrencies-have-a-future) and why it increased my commitment to the cryptocurrency community. I have had an ongoing issue with tax authorities due to a deduction taken in 2014. Despite multiple attempts to discuss the issue and even an administrative hearing, they unilaterally embargoed my bank account for the debt without notice or warning. While I was able to resolve the issue relatively quickly with evidence of the formal processes taking place, it was truly an uncomfortable experience.
Posted using Partiko iOS
It's a saddening case. But it's not quite clear what was the deduction, and why it was not allowed.
But this is an interesting and unique case non the less!
This is the first time I came across your post because of @anthonyadavisii.
I read your other post too and quite shocked of your misfortune. I work as a Business Systems Analyst for the Tax department and do know the devil's in the details. I might have to take this writing prompt a try, the subject can bore people but we'll figure out a way to keep their eyes reading. If they're smart enough to learn anything...
I won't be writing it for the contest (since I don't have personal experience in earnings from crypto). I only have experience in how to best deal with the government regarding taxes.
You can either make a post and put a link here, or put everything directly in a comment. I'll upvote either way.
The aim of this prompt is to help steemians manage their finances better, and help them stay on the blockchain. So any info in that regard will help.
I like the idea of writing prompts
I hate the idea of taxes.
But thank you for the reminder. I will likely have to explore all implications of it all.
/ le sigh
/ le mew
Don't forget to post an update once you've dealt with all those issues!
No one should power-down because of government regulation!
I'm just starting out, so don't have any crypto based tax issues..
but I subcontracted and freelanced in electronics in my 20's, so know all too well the fun.and.games of dealing with taxes..
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STOPDo not miss the last post from @steemitboard:
Congratulations @imacryptorick! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
Click here to view your Board of Honor
If you no longer want to receive notifications, reply to this comment with the word
STOPDo not miss the last post from @steemitboard:
Congratulations @imacryptorick! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
Click here to view your Board of Honor
If you no longer want to receive notifications, reply to this comment with the word
STOPNot looking for votes and not very unique in regarding experiences with taxes but it's nice to see you back around!