Answer me this
>run a masternode
>generate passive income
What type of tax is that? It's not capital gains because the coins are freshly created and it's not income as I'm not employed or work towards the block rewards. Is it considered interests or dividends?
Other urls found in this thread:
irs.gov
twitter.com
it's considered PAY UP GOY YOU NEED TO SUPPORT YOUR NEIGHBOR WHETHER YOU WANT TO OR NOT
>generate passive income
>passive income
>income
>income
>income
Probably dividends.
but it's not income at all, it's actually far more similar to interest paid on your savings
yes goy, better pay up now, shaniqua needs to feed her KEEDZ and tyrone needs his gibs me dats, PAY UP WHITE DEVILS
No, savings are in fiat.
irs.gov
>Q-3: Must a taxpayer who receives virtual currency as payment for goods or services include in computing gross income the fair market value of the virtual currency?
>A-3: Yes. A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received.
You're providing the service of relaying transactions for the network and getting paid DASH in return. You have to include the fair market value of the DASH in your income taxes measured in US dollars at the time your received them. On top of that, if you sell the DASH for more than when you received it, you owe capital gains, if it's less it's a capital loss.
So you owe BOTH income tax and capital gains depending on the price difference when you received the coins and when you sold them.
Wouldn't it be the same as income from renting a property?
Also there should be a field near the end of the form for all other not specified above income.
Fuck this shit, how retarded is this ?
Complicated as fuck, i have over 100 different coins now, how the hell am i supposed to track that, LMAO
what about if you collect like $1 in 100 different shitcoins every day and their values bounce all over the place
why didn't they think of this when they wrote the law FUCK
thats why crypto needs to be regulated goy
Bitcoin.tax allows you to calculate both income from crypto and capital gains. If you don't know the FMV at the time received it'll use the average daily price.
I'm not an American so couldn't care less about the IRS. I am curious about the very fundamental aspect of block rewards and what they resemble the most
It still literally resembles providing a service for a bunch of anonymous people and getting paid property in return.
Because they're fucking boomers and don't understand shit about crypto, they think the only crypto is Bitcoin.
Whatever the laws are in your country for receiving property for payment of services that's what it is. In US, it's FMV at date of receipt.
in the case what you're saying is:
>Receive 10 DASH over the course of a month at an average FMV of $700
>Sell them later when they're worth $1,000
>Pay income tax on $7,000 of income
>Pay capital gains tax on $3,000 or profit upon sale of property
is that accurate?
Pretty much, yeah. Or if you sell them right away at the same price it's all income and 0 capital gains. If it's less it's a capital loss you can deduct from other capital gains or up to 3000 from income tax per year (in the US).
awesome, now we just need to find a jurisdiction with the lowest income and capital gains tax that's also not a shit hole
I just realized... can see how this is fucked up in that you might receive a coin a high FMV of like $100,000 at the time of receipt, have it fall to nothing, sell it. Then still have to put $97,000 on your income tax because you can only deduct $3000 in net capital loss against income per year.