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RE: The 4% withdraw rule and why you may never need to completely cash out of Steemit
You have a point, and if my account on Steemit becomes worth beyond a certain threshold then I too will hire a CPA. Right now I don't have an account worth $1 million but I do think it is possible by the end of the year it's possible.
Even with a CPA, some transactions I don't know how to capture or how to classify, but if I think I will be a millionaire in the future it would make sense to follow a path of least resistance in order to keep whatever I do earn on Steemit.
From what I heard even from various CPAs there is mixed opinions and strategies. Some suggesting immediate cash out into fiat as a means of risk reduction. Others seem to think if it doesn't touch a bank account it's not taxed. I'm not sure which faction is right.
The good news is as long as people engage in the process in good faoth and act consistently then the situation is unlikely to spiral into criminal waters.
Its one thing to be genuinely confused with the tax code and either over or under shoot your liability in a given year - especially on the forefront of a financial issue like this. It's another to actively scorn the notion of taxation, period, and try to hide the ball entirely.