You are viewing a single comment's thread from:

RE: How are you Accounting for Steemit Earnings?

in #steemit • 7 years ago

Your accounting records at minimum should keep both the SBD payment amount, date and exchange rate.

Why SBD should be valued on the day of its earning? Its real fiat valuation occurs only when I encash it to fiat. Otherwise, what if my SBD depreciate by 500% on the day of encashment?

Perhaps, on this basis, steemreports values my total earnings from steem to be about 30,000 US Dollars. But if I want any fiat today, I can't even get 10% of that! So if the tax rate on capital gains is say 30%, from where I'm supposed to cough out the remaining 20% deficit ...just to pay my taxes?

Aside that, I also find a lot of differences in crypto rates depending on the exchange you look at. None of these exchanges are recognized by my government, so why should I consider an exchange rate? I may opt for peer-to-peer exchange also.

To me, it looks like it's better to go for tax evasion and let the tax man calculate my liability. I'll need to only pay them some penalty as my accountant's fee 😜

7 years ago in #steemit by
$0.00
    Reply 5
    Sort:  
  • Trending
    • [-]
     7 years ago  

    so if SBD is valued on the date of its earning, that is for income tax, however then you have capital gains tax. Now your sbd is an investment and loses 1000% in one day, that means you have a capital loss which can be offset against capital gains in the future.

    I love this "I'll need to only pay them some penalty as my accountant's fee 😜"

    [-]
     7 years ago  

    Peer-to-peer transactions I believe are the answer. Whatever cryptocurrency you have, use it only in peer-to-peer, wallet-to-wallet transactions. It's no different than being in person at that point as long as you are sending /receiving the same cryptocurrency. It's like cash at that point. Keep it out of the exchanges. :)

    $0.00
      Reply
      [-]
       7 years ago  

      these would be considered barter transactions and should be accounted for in such manor then

      $0.00
        Reply