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Here is how I think it works, curious if you have insights on how to deal with it?
In the US, every bitcoin transaction is supposed to be tracked. Here on Stacker.News if I earn 10 satoshis, in that moment, the US tax office wants the incoming satoshis documented, valued and then when I spend a few minutes later upvoting your comment, if bitcoin price has changed, I've now incurred a short term capital gain or loss.
Holy wow - that seems like a huge burden to getting the bitcoin circular economy going? Am I over thinking it? Am I getting it wrong?
Do other countries have this same burden?
Is there an easy way to account for it all with code?
I believe (curious what you think...) to speed up hyper bitcoinization, getting solopreneuers and small business owners transacting in satoshis will help a lot. But how to get them on board if the tax reporting seems so burdensome?
Thank you in advance for your time and insights.
This is correct, because BTC is currently classified as the commodity under the US tax laws. For the payments to work as intended, Bitcoin needs to be re-classified as currency. Transactions less than $300 in currencies (ie foreign currencies) are exempt from schedule D gains/losses reporting.
Now, I personally think that as US becomes more and more dysfunctional, the chances of simply non-enfocement (or rather, a highly selective enforcement) of these mistaken laws will become higher than their repeals.
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thank you for this reply that clarifies
I feel like my next step is to figure out how to track the satoshi entries, their value at the moment of receipt, then the value of the moment I spend them
if on lightning and transactions are private, then I'm wondering how I will do this? any clues or insights?
I want to help more USA solopreneurs and freelancers get involved in the bitcoin circular economy and want to make sure I'm not sending them into accounting hell
thanks so much for your time and help
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Maybe ask here ?
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this link was fantastic insight. For others who may read this thread - it is on laws that make it difficult to comply with. A person can not comply with a law and challenge any penalty (if enforcedZ) through a jury trial. This article discussed a lot of weird laws that make it almost impossible to comply with.
My initial thoughts would be to track balances of lightning wallets at the start and end of year, documenting where large, easy to track deposits come from or large withdrawals went to. Screen capture wallet history (like here) when available.
Since I tutor others on how to use bitcoin and now getting into Lightning, it feels like I should have some logical system to address the IRS.
appreciate the link mucho!
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As Americans, we don't quite live in the Mount Doom of Clown World, but we at least live in Minas Morgul.
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БЮрократический тупик! Вот что поможет! пусть одна микро компания сделает прицедент для которого не будет другого выбора как отменить налоги! пусть сдает отчетность по 10000 листов А4 мелким шрифтом с динамикой курсов монеты в каждую секунду.
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