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RE: It's official, cryptocurrency has at least 3 million users! But tax complications threaten to rub out all legitimate use cases
The gift tax laws are constantly in a state of flux but the following items have always been constant.
The sender does NOT owe taxes because he is giving a gift per se. On the other hand, because it is a transaction/transfer, any previously untaxed appreciation is taxed to the sender at the time of the transaction.
When there is a limit on tax-free gifts, it is not possible to screw someone over. Look at the rules for property. If someone gives you a $20M house (when the tax-free limit is low), you are going to be forced to sell it -- but you're never going to owe more than the normal taxes on the money that you receive when you sell it (and you're certainly not forced to sell it in one day).
And you don't think these rules are too complicated for casual people? I don't understand all this stuff, and probably no one but a tax lawyer will. This will keep cryptocurrency from mainstream adoption.
What you're saying basically is we all need to consult with a CPA to participate in Steemit in a significant way.
I'm not even sure two tax lawyers would agree.
I would agree with you on that!!!
Tax laws, in general, are far, FAR more complicated than they should be.
What I'm trying to do is to make it so that a CPA isn't necessary.