RE: Writing Promt - Taxation - Write Informative Comments & Get Some Nice Upvotes
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?