Yeah I did more digging last night and that other link I shared says that even if you didn't pay for the crypto in the case of getting post reward after 7 days, you will need to know market value of it at the time and then when you sell it, it's subject to CGT.
Jeez, what a crock 🤣🤣 you'd probably just use the $1 peg of SBD/HBD for author rewards to work things out. Going to be a fun few weeks going back through all that 😂
I looked up that coinly site you mentioned and there was a great article there. I may have to start using their service. Is it free to create an account and do they fill out the tax return form free too? Seems like too good to be true that!
Seriously considering powering down and just consolidating into BTC now and forget this ever happened whilst I'm still under the threshold here haha
Posted Using LeoFinance Beta
If you want to do full tax reports on Koinly (slipped in an affiliate link there 😂) you'll have to pay but I'm using it more as a calculation tool.
It calculates the price of the crypto at the time it was bought/sold/moved and it works out the pool stuff.
I'm uploading .csv files and then going in and doing manual edits as needed in relation to how something's been classified.
Ultimately I will put summaries into a spreadsheet and use that for final tax calculations. At least that's my current plan. 😂
Posted Using LeoFinance Beta
LOL, thanks for the referral link although it didn't seem to work when I clicked on it, may have to update it and shill me another one haha! Wow, you get quite a lot for the free account and $49 for the whole year isn't bad to get the tax form completed. Will be good to see if my calcs match up with theirs as I have the price bought/sold at too, that was a flipping pain to do manually haha!
Good plan and I'm glad Che brought us together here - been a great discussion and thanks for bringing Koinly to my attention! Maybe when all our cryptos moon, we'll have a solid tax foundation all sorted out and won't have to worry about it!
Posted Using LeoFinance Beta
But then you'll have to stop posting on LEO.finance and we'll miss you. 😢
That will only work if you sell though won't it? And if you're going to do that you better get a move on because of the Bed and Breakfasting rules which prevent you from selling in the last 30 days of the tax year and buying back in
It certainly needs thinking through and managing.
I'm just doing a little bit each day until it's done and then I'll have a much clearer view of how much work it will be to keep the required records going forward.
Changing our strategy purely because the record keeping is so onerous is a totally nuts situation to be in as far as I'm concerned. It's probably going to get a lot worse before it gets better too. As more and more situations are created that HMRC has no clue about.
That's very kind of you to say!
Yeah if I'm selling then I'll have to worry about it but as I wasn't intending to until the price picked up by quite a lot more then I probably don't need to worry about it for the moment. Might as well use the time before to update those spreadsheets!
That's a good plan and something I'll probably have to be doing with STEEM/HIVE although I bought and sold STEEM after the fork. I've updated my records for everything and STEEM, which is my biggest "gain", is barely 4 figures after I disposed of them so I don't even need to report that according to HMRC. Think I should be safe!
You're right on all fronts there. Sadly I've reduced my purchasing of crypto due to the "taxable" event nature but ultimately, trimming down and consolidating is probably not a bad shout given the amount of arduous paperwork that's needed!
Posted Using LeoFinance Beta