Haha, no problem. I appreciate different perspectives on the matter, as still trying to piece together the optimal accounting strategy. :-)
The question in our case is -> is income on Steem considered payment for a service, a mining operation or anything else :) I don't know.
I talked to a lawyer last week, and we kinda came to the conclusion that anything earned on Steemit would pretty much be considered income. However, there may be some room for creativity in its accounting - because as half is paid in Steem Power, that might not technically be considered taxable - until a Power Down is initiated and you receive the actual Steem.
Of course, that could get seriously fucking complicated to fully record, especially if one weren't to do a full 100% Power Down.
I'm simplifying it in my case, documenting SBD received as income - and deferring the Steem (Power) until a Power Down is initiated next year or the year after. As the Power Down I currently have going was started last year - and I was living in Indonesia, thus no taxes filed last year - those Steem distributions could be considered capital gains - if I were to cash them out direct. Though with the conversions between different cryptos and capital gains/losses not actually realized until into fiat... headaches.
Well at least for now, I've got a simplified solution that should suffice.
I am happy with this simplification too.
I would simplify it further. I would say that you actually get your Steem / SBD income when you transfer it to your bank account and then report it in its fiat value.
The other question is, at least according to Slovenian tax laws, what happens when you don't exit Steem to fiat and go to exchange with it to buy BTC.
No, tax inspector would argue that any exit from steem is considered an income.
Eh, complicated ...
OK, enough for now. Thanks for reading my excursions into the fascinating world of crypto taxation :)
I am doing this for selfish reasons. Sooner or later I would have to do this exercise myself. For now, I am ignoring the issue...