RE: Test
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$550 worth of tax deductible Hive
Are you counting your earnings from blogging as taxable income? I've just started looking into the whole tax thing having ignored it for 3 years.
From what I've read, we should be recording every single transaction and working out the sterling value of it. No way I can do that going forward or looking at the past.
I'd need to find out the Steem/Hive/Euro/US dollar price every time I did something. Apart from the more normal buying and selling of crypto every change from a Hive to swap.hive and swap.hive to something else, for example, is a taxable event.
How are you handling it all?
Any idea where I can find historical data for my Steemit posts or my Blocktrades trades? I literally have a headache just writing this. It's a massive undertaking.
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I'm basically ignoring it for now.
As far as I'm concerned i'm not not earning anything - it's all just token swaps which people put a fiat value on just for fun.
If ever I cash any out for fiat I'll just put by 20% or thereabouts for tax.
If I can hold out long enough until I figure out how to shift my tax base to Portugal I don't think I'll have to worry about it at all!
This was a response to your original comment. I think you edited while I was posting. 😂
They are a taxable event every time you exchange a token for another token or currency. Then when you take them to fiat they come under capital gains tax. The rules were updated from when I looked a couple of years ago. And Coinbase and other exchanges have agreed with the HMRC to pass them records of all accounts who received more than £5,000 worth of crypto assets in their Coinbase account during the tax year of 2019/20.
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Oh that is interesting, I don't think I've bought or sold that much crypto thankfully!
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Shifting your tax base to Portugal to avoid capital gains isn't easy either. I've read a lot of discussions of people talking about doing this (although they were mostly talking about moving to Malta). But it's quite complicated and you have to be there at least 5 years before selling and can't hold abiding ties in the UK during that time etc. etc.
Of course my other strategy is leading a low income lifestyle, I'll never need to cash out more than a few thousand a year anyway, so whatever tax I do pay would be pretty minimal.
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Yep. I'm with you on this one but I feel I need to get some records all in one place and then stay on top of it.
Happy New Year by the way!!!
I guess it makes sense! And happy new year!
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