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RE: Steem and Capital Gains in Ireland
Does capital gains not kick in only when you convert to fiat? Does it matter when you convert Steem or SBD to Bitcoin or other digital asset?
Does capital gains not kick in only when you convert to fiat? Does it matter when you convert Steem or SBD to Bitcoin or other digital asset?
It doesn't matter what you exchange for it. In any case it counts as 'disposal', and you owe tax on it (as long as you made a gain, of course).
At best it's a very gray area.
Does converting to SBD count as disposal? I am not so sure. Also the jurisdiction of where the disposal takes place will factor in and where you are tax resident. A distinction would also probably be made of income (such as from posting) which may be traxed at your marginal rate and capital gains from the increase in the price. You can also offset losses.
Whatever way you look at it it's not 100% and may change in the future depending on how governments decide to react. For example they could take a hard line at a later date.
Nice problem to have though :)
I don't think it's a gray area. I would think the conversion of Steem Power to Steem could be a gray area since there is no exchange made with another party, but if you trade an asset for another, it's definitely still a taxable event.
Further down on the page:
Calculating income tax and CGT on curation and author rewards will be pretty complicated, or at least time consuming. And yeah, governments could change how it works. I'm hoping the state will be disrupted by voluntary consensus networks before they do that :-P
Ok I'm a complete noob in these matters, but how will they know anything you're doing with your steem or bitcoin unless you convert them to fiat currency?
Well my real world identity is connected to this account, it's also connected to my accounts on various exchanges.
Oh Lol, if you had a chance to go back in time and remain a total anon (assuming you'd still make equivalent STEEM) on this platform, would you?
Maybe...
Ultimately if I participate in events like Steemfest my identity is going to get out there anyway. Tax evasion would probably be quite difficult for Steem users (my post recommends tax avoidance instead).