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RE: The two dreaded words...Income Tax
In theory it would not be considered income until you turn it into a currency that you can use to buy goods and services. Would it not work the same as when you exchange services for services. Would the value of the service be what is considered the monetary value of the currency? So this would be true if you use virtual coin to buy something and that person accepts that payment. It would not be considered until you spend it. Just a thought.
I think that's how crypto was handled prior to tax yr 2017. In December of 2017 the tax reform that was pushed through in America slid in changes to that effectively, potentially making every single transaction taxable. With steemit this is very very difficult because if you upvote, thats a taxable event. Get curation rewards? Taxable event. Exchange sbd for steem. Taxable. Power up, taxable. They changed it in such a way that it's very broad, and vague, and there's no telling how they are actually going to approach it or enforce it, but that there's enough vagueness to leave it open for them to enforce it however they want.
this is exactly correct @phedizzle, tax reform has changed the game for sure. Its not viewed as currency but as property.... They have absolutely created some difficulties for this platform, once we moved from bitcoin into other alt coins the IRS has realized they needed to make changes to at least give us enough rope to hang ourselves, I don't know how much rope yet. Thanks for your two cents here, This is really the conversation here and you nailed it, Now, what to do about it?
We will have to see how this all turns out when it is time to do taxes this year. Maybe they will add an extra form where you need to declare what you started the year with, what you collected and what you spent.
basis will for sure be part of the calculations :)