CryptoGOV

06 Mar 2023 20:44

Technically speaking, the hex is burned via the smart contract when you stake (now mine?). The tax softwares I've seen treat a "burn" as a deemed sale with capital loss. My accountant and I don't take that approach since that would be a bit aggressive in that you are claiming a tax benefit. Instead, we call it a burn but treat it as a staking deposit and set those staked coins out of the remaining hex inventory I possess. When a hex stake ends, the principle maintains original cost basis and the hex yield/reward has cost basis = 0 since the smart contract is programmed to tokenize time and inflate your principal

CryptoGOV

06 Mar 2023 09:31

Burn without the capital loss?

CryptoGOV

06 Mar 2023 08:08

Where can I get a copy of that? I would be forever grateful if you would point me to the source or attach a copy (if Telegram allows it). Thank you!

CryptoGOV

06 Mar 2023 05:41

Does anyone know how to report an EES Hex stake on Koinly where due to penalty, you received less Hex than you initially staked?

CryptoGOV

06 Mar 2023 02:49

@OC4me I do have a pulse and pulse x chain sacrife pdf for taxes someone sent me here a while back that outlines a few versions of how to treat that. but I think we need a one page thing...just how to assign differnet transactions to refer to often when going into our coin tracking software.

CryptoGOV

06 Mar 2023 02:11

the waatsa creation...how are people assigning tthat?

CryptoGOV

06 Mar 2023 00:14

Is coinly more set up for hex than coin tracker?

CryptoGOV

05 Mar 2023 23:17

As long as there is no paperwork

CryptoGOV

05 Mar 2023 23:16

So yeah, it‘s not entirely tax-free.

CryptoGOV

05 Mar 2023 23:09

Have you ever heard about that thick, liquid, black stuff, called oil? Allegedly, it‘s very precious and the UAE has lots of it.

CryptoGOV

05 Mar 2023 22:51

idk, United Arab Emirates?

CryptoGOV

05 Mar 2023 03:03

Is hedron staking income or an airdrop?

CryptoGOV

05 Mar 2023 00:33

If I bought XLM on Coinbase, and then swapped it into HEX using changenow.io and then staked that Hex, is there any part of that process that needs to be entered into TurboTax as a taxable event or do you only have to report on HEX that you want to swap into USD? TIA

CryptoGOV

15 Feb 2023 23:53

Thanks for the info man, I’m going to get a second opinion from another cpa and go from there

CryptoGOV

15 Feb 2023 18:30

When you say you “had assets value above $75K in aggregate at any one time across foreign financial institutions”- are you saying you had it on a foreign exchange like binance?

You would think using dex’s like uniswap would still be self custody. That’s how I was feeling about it. I think he could get me flagged for over doing it

CryptoGOV

06 Mar 2023 17:41

@OC4me I sent it in a DM as well. Not sure if there is a newer version or not?

CryptoGOV

06 Mar 2023 08:09

its under media files in this telegram group

CryptoGOV

06 Mar 2023 08:04

Also America used to make enough on Tarrifs alone and Trump plans to do it again.

CryptoGOV

06 Mar 2023 02:49

I really just want to do it accurately and carefully.

CryptoGOV

06 Mar 2023 02:29

is there a such a thing as a tax guide document covering the RH projects and icosa hedron etc just simple list of best practices how to assign stakes, end stakes, etc etc? seems like we really need this!

CryptoGOV

06 Mar 2023 02:10

Icosa earned via staking hedron could be interpreted as a mining reward. The term staking is being replaced, seems like mining is the direction richard heart is going with for hex and Alex, the creator of hedron, said he would do the same

CryptoGOV

05 Mar 2023 23:55

For usa how are people naming icosa and hedron end stakes? And hex stakes? (Using coin tracker)

CryptoGOV

05 Mar 2023 23:16

All posts above aren’t financial advice, btw.

CryptoGOV

05 Mar 2023 23:14

There‘s a tax on that black, liquid stuff in the UAE and that‘s how they finance their roads.

CryptoGOV

05 Mar 2023 22:55

Really? How government get money to build road?

CryptoGOV

05 Mar 2023 21:53

Name country where i don't have to do any tax paperwork

CryptoGOV

05 Mar 2023 02:05

Hey, Trump just announced new cities by selling Federal land. Might be our opportunity to get a tax free special economic zone.

CryptoGOV

04 Mar 2023 08:41

I ran into this issue too with software, ended up manually doing FIFO inventory of my hex transactions since the staking is technically a burn without the capital loss

CryptoGOV

15 Feb 2023 19:04

Yes, that is exactly what I'm saying.

As I understand it, DEX's do not custody your assets, hence your money wasn't there (as it regards filling out Form 8938).

Keep in mind that many folks have each self custodied more than $10 million in crypto assets. As I understand it, they, in general, are not reporting this info on Form 8938. There has been chatter in Congress and perhaps the IRS to mandate this reporting, i.e. you have to report your crypto wealth every year, self-custodied or not, but that doesn't seem to be the situation now.

CryptoGOV

15 Feb 2023 18:04

I'm not a tax expert, so take this for what it's worth.

Imo, your accountant is overdoing it. I file form 8938 whenever I have had assets value above $75K in aggregate at any one time across foreign financial institutions in the given tax year. That number drops to $50K if it's the end of the year. What you self custody doesn't go towards that number.