The accountant we used a few years ago was clueless about crypto. We’ve used TurboTax since but FWIW we’ve just checked the YES box that asks if we done any crypto transactions in the last year. But what then? There’s no option for entering anything manually, but it’s not as if I could do that anyway. Between Hive and Hive-Engine, there are dozens or hundreds of micro transactions every day. I’ve got no clue how I’d begin to comply.
If I ever get audited, the tax demons can figure it out and bill me.
I agree, there's no real way to make it work by tracking every transaction.
I was thinking...Imagine someone knitting a sweater to on-sell. At the point of sale revenue is collected and tax is payable on the income. Does the tax department ask to see every stitch reported on or just the materials, cost of manufacture and revenue? I think they're juts trying to grab as much as they get when paying tax on crypto to fiat exchange is the simpler way to go I guess. I'm no accountant, so am more clueless than accountants when it comes to this stuff but there's got to be a simpler way.
I like your idea though, let them sport it out. I'd be happy to pay 50% on every dollar converted to fiat and not have to report.
I agree and asked people in Hive that I know there. Their answer is they have no clue or they just do not report it. So cant say that I am to happy with Hive and anything regarding in how to file taxes for crypto. My tax person is still trying to figure my taxes out for me. If it ends up that I have to pay into federal and state taxes I will jump dump everything I own in crypto. Just my thoughts on this matter.
Well, the blockchain is decentralized and people in hundreds of different jurisdictions with wildly different tax codes can earn from it. And the core developers have no real incentive to help us figure out how to do our taxes.