Amidst the Metaverse craze that went on last year, I took part in a number of IGOs (Initial Game Offering) on platforms such as Seedify. As part of these IGOs, I made a contribution of X Stablecoin (BUSD in Seedify's case) and when the Tokens were minted/generated I received a number of the tokens.

My question is how is this type of transaction categorized? Is it a purchase or Income or something else?

Thx

Crypto tax calculators base their fees/prices on the amount of transactions you have carried out over the course of the financial year. Ok, I understand that there are quite a few lucky ones amongst us that have been able to just buy & Hodl and therefore have no taxable events/transactions to speak of, really, yet. However, some of us are DCA and staking, spending/using etc. and therefore incurring taxable events/transactions on a regular basis. Then you have the lunatics down the DeFi rabbit hole whose lives are just constant transactions/taxable events. Not forgetting the miners, validators et al.

So which group do you fall into?

Cheers for getting involved.

Originally posted on r/saltynocoiners

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Are you reporting your staking rewards as Income or as a $0 cost Buy and hoping for a favorable ruling, either from the Jarrett case, or from new IRS guidance, or from passage of the Lummis-Gillibrand bill? If we don't pay as Income now, we will owe a (big?) penalty later. If we pay as Income now and get a favorable ruling in a year or two, we will have to do an amended return and hope for a refund. Tough choice.

Hey, we have created a survey below to understand your crypto taxation-related pain points.

It would be super helpful if you could spare about 5 minutes for this.

Here's the link for the survey- https://forms.gle/11D7Ty9xn7nSXmgLA

Thank you!

Hello there. A bit more info here:

I am UK based. This was on last year's tax return (2020-21) but I only noticed it now.
I traded relatively small amounts of money (should be at most 800 GBP) on this exchange that went bust. I was using koinly when i reported my capital gains last year. I used an API key to import the transactions. I only now noticed that the API key had seen only the deposits and withdrawals but not the trades I did on that exchange. There is no transaction history at all on this exchange. I have renewed the API key but it still doesn't see the trades.

Because it had seen the withdrawals and deposits I actually paid tax on these. For instance , if I sold 1 shitcoin for 10 USDT and then withdrew the USDT, I paid tax on the 10 because it had a cost basis of 0.
This is fine but the problem is that koinly still thinks I own 2200 of this shit coin on this exchange. Unless I sort this it will still think I do every year onwards. This particular shitcoin has not rugged and will probably be valuable again in the future.

Now, I can't report these tokens as lost because that could be considered as a capital loss which would be incorrect. (might reduce my future gains)
If I add any trades, I would be changing what I reported last year, Let alone that I have no notes of the trades other than they were definitely worth less than 800 GBP.

How can I handle this situation? I need to somehow remove them from my tax reports from now on. If of course don't mind paying more tax, I have never tried to pay less than what I owe and don't plan to.

Hi everyone

I've been using this website m.liquidityswap.vip for sometime now. I wanted to with draw $134k which is EVERYTHING from my prinples and earnings, but customer service said I need to pay 30% tax to the U.S IRS which is $40'706K USD I find this hard to believe and they froze my account too so I cannot do anything. I still see my asset funds but I do not see my ETH coins. Can someone please advise?

They said they will provide a crypto wallet address for my to pay the 40K USD to the IRS... I call B.S. please let me know your thoughts.

They keep telling me this is a one time tax payment and after that I am free to withdraw any amount and doesn't matter how many times. I asked them if their are extra fees they said no and then they proceed to give me a due date to owe the money and then after the IRS takes everything?

Nomads are taxed for local income and aren't - for foreign-sourced income. What about income from staking? Is it local income or not?

Hey guys,

Multis interviewed "The CryptoCPA" in order to help DAOs and companies holding crypto w clear up some confusion about the process of filing taxes. You'll find a brief below:

https://multis.co/post/crypto-taxes-what-you-need-to-know-when-filing-for-your-businesses

Hi there, I received crypto as payment for a business in 2021. I'm wondering if my understanding of what needs to be done is correct.

I have thorough records of the transactions as well as historical hourly data to establish value of payment and cost basis.

I currently reported that value on my schedule c and then will maintain the record for future cost basis use.

Is there anything else I need to do?

Hello all, I received an email from coin base saying I had over 8,000 in gains last year from Bitcoin. I really lost my ass last year and a couple times had some winning streaks and cashed out my deposits. Maybe one real time I actually won 4K back off my losses but still was in the negative last year for sure. I don’t know exactly how much I loss overall to be honest but I know i didn’t finish in the plus at all. Do I have to pay taxes on 8,000 usd of sold bitcoins? I just would usually cash out my deposit once I built up some house money but 9 times out of ten I’d mess it up and never cash any winnings out. I would usually withdraw to Bitcoin and convert it to USD as soon as it showed up in my coin base wallet. Please help. Thanks in advance

I’m a little perplexed by how I can accurately pay taxes on all my crypto transactions. I’ve used many different exchanges and have converted many coins for others, etc. I know there are YouTube videos out there and I have watched some and have started using cryptotradertax—but after entering in transaction history from various exchanges I feel it’s somehow not accurate. I haven’t made any life changing money off crypto but still want to pay the tax so nothing bad happens

25%?

I'm not finding a clear answer.

Is there a way to track Aave's reward deposit history? Lido is able to do this with their Staking Protocol. They create a nice CSV to export. This will be required to track for taxes and I don't see any solution for those earning rewards on their AAVE Deposits.

Or is none of this even necessary given this IRS decision https://blockworks.co/in-win-for-crypto-stakers-irs-offers-refund-on-untraded-token-rewards/

I honestly feel like im the only one who thinks the crypto tax rules are absolutely ridiculous. Like how the hell are people ok with this stuff??? The whole point of crypto is to ultimately have a much better monetary system no? So how the hell did the crypto community stay so silent as the U.S acts like a clown and imposed the most ridiculous tax rules ive ever seen. With their current system you pay taxes on your taxes on your taxes on some even more of your taxes. So we finally build another way to exchange value safely and we have allowed them to now come in and say hey " we are going to tax you for having this money that isnt Us dollars, everytime u exchange Us dollars for this coin...we gonna tax u...everytime u exchange that coin for another coin...even tho that has absolutely nothing to do with the us dollar, nor do we have any right to lay claim to your money we gonna tax u....when u turn that coin back into us dollar... guess what, we gonna tax u again...o??? that coin just earned u a tiny tiny tiny tiny fractionaly piece of another coin....well guess what buddy we gonna tax u? WHERE IS THE ANGER. WHERE ARE THE PEOPLE WHO ALSO THINK THIS IS RIDICULOUS. AT WHAT POINT DO YOU REALIZE THEY DONT WANT YOU TO BE SUCCESSFUL. I dont want to seem like some raging internet maniac, but my point is the world is already so rigged against us. Crypto is offering a true valid option different from the beyond horrible fiat abuse that the U.S has subjected to the rest of the world. I would truly hate to see the oppurtunity get destroyed slowly but surely through ever encroaching policies. WHAT ELSE DO WE NEED BEFORE WE WAKE UP AS A NATION. WE ARE ALL CHAINED TO THIS SHIT FIAT PIECE OF PAPER THAT THE FED NO LONGER HAS CONTROL OF. My ultimate point is, I dont even see people talk about this stuff. Where is the big youtubers covering this nonsense and pushing for change? Why dont celebs patriot something that would actually benefit ppl? I am just so confused on how we can remain so silent as a community when now is the time we need to be standing up and yelling and screaming for our freedom to choose our own exchange of value. But then again...maybe it really is just me...

what is the best way to report ICO investments and profits?

I was just looking at cryptotaxcalculator.io and wondered if anyone else has used it succesfully?

It has similarities to Koinly.

I am having trouble with the Binance exchange, messages like " Missing market price ", I'd happily just edit a few entries but these are from a bot I am running so many transactions!

I've also started a sub reddit for this app in case anyone is keen.

r/CryptoTaxCalculatorIO

One of the things I've been thinking about is how is the US government supposed to enforce taxes onto a wallet without any kyc on that wallet. For example you are mining to a wallet then taking your funds and moving it into a defi protocol without ever touching a CEX

Just recently a friend of mine traded some alt-coins for me (using his own exchange account in crypto.com) the safest way we decided to transfer the assets to me was to store the funds as tether in a crypto wallet we created on the dark web. When I’m ready to pull out some funds I’d connect it to an exchange and sell the tether and cash out into my bank account. The money I have in that wallet isn’t a small amount, about 250k usd worth of tether. Is there any legal/tax ramifications (in the us) for the system we chose to do it? When I do withdrawal funds from the wallet how will it be taxed? Will the exchange file them for me like an employer would? I plan on using crypto.com but am open to using Coinbase or another large exchange that is secure and well known. Any advice would be helpful as we messed up the way we set it up in the first place and I’m trying to keep those funds legal and safe.

Hi everyone I have simple question Do I pay taxes on earnings if I sold crypto but not transferred it to my bank account? If yes, why?

Selling an NFT to a friend via OpenSea for, say, $10 and then buying it back from them in 3 months for $10 is a solid tax loss harvesting strategy, right?

There's no issue in doing this? If the NFT cost $1,000 then I'd be able to take a $990 loss this year and if I ever sell it in the future, I just pay the gains then.

I understand the rules around holding coins for more or less than a year, and it says everywhere that if you sell in under a year you are taxed at your personal income tax rate.

My question is whether your gains are added to your normal income to give you a new (probably much higher) income tax rate on all your income, or do they take the income tax rate you are paying on your normal salary and tax your crypto at that rate?