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206 sats \ 3 replies \ @elvismercury 27 Dec \ on: "Get to the Safeharbor!" - Andreas's Interview on 2025 New Tax Laws bitcoin
I listened to this last week and I still don't really understand who this is for, esp wrt point #2.
Is the idea that if you've been moving btc into and out of exchanges, then they'll compute some weird cost basis? So if you bought on Kraken a few years ago at $62k, and moved them onto Coinbase recently at 53k, then Coinbase wouldn't know how to assign a cost basis and would do something weird?
Its a badly presented topic, they made it far too confusing. The take-away is: Cost-basis on "crypto reporting" is now going to be computed like every other asset.
I think the reason why this is causing such a stir, is that evidently many crypto/bitcoin tax filers have been using some web-based reporting software that applied some type of "universal cost basis" (which is now going away).
The "safe harbor period" is basically saying that you need to organize your holdings and document your cost basis on each holding.
I suspect for bitcoin-only types this is going to be minimal amount of work.....for degen crypto traders, well they will now see the tax impact of their constant "trading".
IMO, this is all pretty much a nothing burger.
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The whole issue imo is overly confusing and needs major reform. Every zap, every sat sent and received on Stacker News (or Nostr or anywhere else) has to be tracked in terms of fees, price of 'acquisition' and price at 'transfer'.
Get zapped 10 sats? Record the exchange rate when you receive them.
Zap someone 5 sats back? Record the new price at the time of zapping - everything documented and reported etc. This would be required for millions of people for every single zap 24/7 365.
Eventually when Bitcoin is a massive medium of exchange on Lightning every single cup of coffee, every single candy bar will have to be tracked for tax reporting purposes... every single transaction no matter how small will have to be recorded and reported by the user. Even from small fluctuations in daily exchange rate.
Most 'normie' people don't have the time, ability, or inclination to calculate their 'capital gains' (however small) on the burrito they just ate... so I'm not sure how that will play out with future mass adoption. Maybe the wallet software can do it for them... combining zapping, Nostr tips, pay from an employer, and every single daily purchase they make (gas groceries food auto repairs subscriptions everything) into one neat app to forward to government for tracking.
It would kind of be like a Bitcoin CBDC then LOL
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Yeah the rules to do it the "right way" officially are absolutely bonkers. There's no way you can spend btc anywhere other than a one-off, and track all this shit. I think there's no shot of anything other than SoV adoption so long as this is the case.
The only possibility I can realistically imagine is that so many important people develop large bags that they pivot tax policy to highly up-regulate sales tax or something. Seems unlikely, but I can't come up with another plausible scenario where you could use it as money.
Well, I guess a broader social collapse is also plausible, but at that point the lack of tax burden will be the least of our concerns.
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