As much as a chat would be easier I want this to stay out as a post discussion as I want this to remain active for any of the ShibArmy looking for answers. I’ve always done my own taxes and crypto is new to me and I just want to make sure when April rolls around we are all prepared to protect ourselves from the IRS (or whatever governing body you have to pay taxes to) by making sure our records and we are doing the taxes right.
Now from my understanding is just like any other monetary gain be it extra income, stocks, gambling/lottery money. If you sell crypto as a gain within a year of holding you pay normal income tax. Meaning if you do work a 9-5 you take that gross income add in all your extra income for the year (meaning gains, if you sell at a loss that sum of money isn’t accounted on gross income; am I understanding that right?) and that will be the tax bracket you classify under.
So: Gross Income from regular job + (Short term gains added together) = Total amount that will be compared to the income tax correct?
But if you own the crypto longterm (over a year), then sell. You are taxed at a lower rate and it’s separate bracket from your normal gross income tax bracket?
Lastly, the main concern I have is staking rewards, does anyone out there know exactly how the taxation works when it comes to staking/providing liquidity. Within this community this is very important considering shibaswap. The other thing I want to add is since the assets (SHIB, BONE, Leash) are locked in when digging or burying does that lock those current gains/losses from being accountable for taxes next year?
Thanks in advance my fellow ShibArmy folks that join in on this discussion. Figure this is a good time as any to bring this up.
submitted by /u/putz9
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