/biz/ - Business & Finance

Shhh...the tax man doesn't know about that yet and they don't need to.

>>30381003
yes. (((they))) expect you to pay taxes on dividends.

>>30381570

Is that how the IRS treats it ?

Income?

>>30381003
It’s taxed twice. The price at which you received it as income tax and capital gains taxed for when you cash it out taxed at it’s current price.

>>30381003
i take it you mean staking rewards? might depend on how you receive the rewards. eg if i stake link and choose to be rewarded in link, then is that taxed at the market value of the link at the time i'm rewarded? probably. if i choose to be rewarded in cash at that time? then definitely. you might get away with not declaring, but one day it'll likely catch up with you, most likely when you begin buying things like property and cars

>>30381581
yes, because it’s income. you report it annually and pay based on what you report. it is highly illegal to under represent your earnings.

>>30381688


I mean my ataked shit never goes to fiat...how is it taxable? Are DRIPS taxable?

>>30381702

How is it income. It literally just gets restaked

Wtf

>>30381702
will the irs take tokens?

>>30381716
everyone knows crypto to crypto is taxable. that never goes to fiat either.

>>30381702
>it is highly illegal

>>30381702
but you cant take it out cuz its staked

Gifted crypto is taxed at the market value upon receipt

No fucking clue how you figure this out when you stake for a long time

>>30382032

Sounds like the irs meeds to explain or im just gonna say shit and start complaining to my congressman.

>>30381751
I think it is taxed as income when you convert it do fiat or a different crypto, and you can subtract your initial investment. At least that's the only way that makes sense, taxes are fucking weird and no one really knows, it's up to a judge's interpretation when you go to court.

>>30381655
>It’s taxed twice. The price at which you received it as income tax and capital gains taxed for when you cash it out taxed at it’s current price.

Gracias! And the second time is taxed at the price you sell it for, minus the basis (basis would be the amount of income you recognized and paid taxes on already the first time). Just in case, so frens don't accidentally pay more than they need in taxes.

>>30381003
I'll pay it if they tell me what I owe, fuck them if they think I'm spending a week mapping all that shit out so I can cut them a check

>>30382145
> I think

Nobody gives a shit about what you think. Staking is taxed as income tax upon receipt at market value. And taxed once again when you cashed it out to fiat as capital gains tax. I already consulted with a veteran tax preparer stop giving bad fucking advices.

>>30381003
Don't be silly
Report it to the IRS so
Your taxes can be done efficiently and uncle sam can get his fair share of your
Gains

>>30381003
I'm wondering if you burger fags also pay taxes with gains you've made on DeFi?

>>30382912
Of course we do fellow citizen

>>30381953
The best explanation on this thread.

>>30383186
But why? Will they track every metamask wallet and its interactions with contracts?

I think you report it on a schedule 1 form when you do taxes.

>>30381003
>imagine being a burger
land of the free eh lads?

>>30381655
If you claim it and immediately sell, would it just get taxed once?

They fought Great Britain over tea tax & now they tax fake assets

>>30381003
So do I get a cut of the interest the banks take on my debt?

Too bad I just click the stake button across all my random coins at random intervals, good luck irs.

Also I’m iq 78 and not able to stay organized. I just click the buttons and make the money. Sorry irs.

>>30382272
>I read the rule book like a good guy and you better follow the rules!!!!
No.

>>30381702
How can it be income if its not recognized currency?

>>30383681
they even have to report yearly earnings to the IRS if they live in another country

>>30383342
Most states don't have access to any fiat in/out besides coinbase, which reports all of our txs to the IRS. So if you ever cash out, coinbase/binance rats you out and if you haven't been tracking your DeFi txs and paying the stupid crypto-to-crypto tax then the IRS fucks your ass. Assuming you made it big and are trying to cash out a noteworthy sum anyway.

>>30383858
This
>>30383871
I don’t ‘have’ to do anything lol.

>>30382272
you can also just read about it on the faq on the irs website

>>30383858
If a person gives you a car, you have to report the car as income, equivalent to its market value at the time you received it. Currency has nothing to do with it.

>>30383736
It's okay, they'll just tax you at a 0% cost-basis, which is pretty much how it should work anyway since staking gains are free.

>>30383736
Won't a lot of people be doing this...? It's actually difficult to quantify gains when staking and swing trading.

Do you report earnings on rug pulls? What about losses from buying high/selling low or transaction fees that cause negative gains?

>>30381751
do NOT take legal advice from here please

>>30386152


Tbh nobody here seems consistent anyway. I guess ill call the IRS and ask

Btw picrel was dinner

>>30383736
>>30385251

In that case the IRS can just decide itself how much of your money it thinks you owe it lmao