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RE: Vlog 197: Taxes and the STEEM blockchain - A tough puzzle.

in #life7 years ago (edited)

I personally do the following to track my Steemit gains (or at least will be in the coming year)...

  1. I only claim my Steem/SBD 1x a month (usually at the end of the month), you don't pay taxes until you actually claim it, and this allows you to group all your monthly gains into a single claim (simplifies stuff)
  2. I then use an excel file to input the date of the claim, the amount of each token (Steem vs SBD), the current value of each (taken from coin market cap at the time of claiming (which is an average of all the exchanges) and the total gain of each (amount x avg price).
  3. these gains (at least where I am) are not capital gains but are instead taxed as income (so I keep this data separate from my actual crypto trades which are capital gains) and throughout the year I make sure I am not about to push myself into a higher tax bracket (as that would screw my capital gains over fairly majorly).
  4. at the end of the year I then calculate my capital gains (trades) in one column, and my additional income (mining, steeming, faucets, staking...) in a separate column and use these 2 figures to calculate what I own (gains vs income).

But overall taxes do complex the living hell out of cryptos, and are by far the thing I hate most about the space at the current time (not only the complete rape the taxman lays down on me, but also the complexities of tracking it all...)