A Drum & Bass Tune For My Crypto Journey
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It's been a bumper start to 2021 for me with my head exploding at the tax implications of earning cryptocurrency from posting on Hive over the last 3 years or so (and Leo over the last couple of months)! Frozen with fear of posting, panicking over tracking back the last 3 years of trading, I decided to give HMRC a call this morning to settle the nerves! Thankfully, they cleared everything up for me, the clouds began to lift and it reminded me of a Drum & Bass track I made when I first got in to cryptocurrency in December 2017 called Much to Learn - here it is in full if you wanted to listen in whilst you read:
I remember the creation of this track well. I saw a Facebook post from a music friend (who was in to Forex trading at the time) saying that it's not too late to get in to crypto due to up and coming "alt coins", when at the time, BTC was shooting up to all time highs of $20k in late 2017. I was intrigued, messaged him straight away to find out more because I had initially heard of BTC back in 2012 from an ex-banker but the information was pretty scarce back then. FOMO struck!
As my music mate was describing it to me, my head was in a daze, much like it was when I went down the tax rabbit hole 3 years later last month! When I start getting a little twitchy about things, I either express it via making a music track, do some exercise (which only masks the sentiment) or I implode. Thankfully on this occasion, I made the tune above and it felt really cathartic in the process but it meant I went off line for a while, like I have done in January 2021.
Much To Learn
The track itself is not really one to "dance" to in my view, it's more of a deep, distant melody, which is quite deliberate as that's how I was feeling, standing in a place full of tonnes of information that I didn't really know which way to turn. But hey, if you can dance to it, go for it! Thanks to @gabrielatravels for creating the artwork on the original, which was released in 2018.
I'm sure all of us have experienced the steep learning curve of crypto, maybe you're just getting started or you've been around for a long time but still feel like you're forever learning. The technology, the financials, the different projects out there working on ways to improve the industry and the world for all, there's a lot to take in but slow and steady wins the race and the more you immerse yourself, the wiser you will become... at least, that's my hope!
The moral of the story is, keep your accounting in check and if you're not sure about something, don't be afraid to speak to someone with better knowledge than you - it will definitely put your mind at rest!
Enjoy the tune!
How has your crypto learning experience gone? Do you still feel lost or have you waded through the information and feel wiser for it? Let me know in the comments below!
Take care
Nicky
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So did they basically say not to worry about it? I have been posting and trading for the past three years as well. How far back are they actually going to go. I am hoping my brother in law will have some good answers for me when he does my taxes. I have never pulled anything out, so I think all of my stuff is just going to be unrealized gains and losses. That song kind of reminds me of the stuff I have been listening to from Tipper and James Hood recently. Nice job!
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They said to me to just send a letter with my income (which for me, is when I powered down my STEEM as I powered up post earnings), for the tax years I have been involved in crypto and also to report capital gains/losses as well. I used Koinly which is an online tax calculator to help work everything out. If they want to chase and get details, I'll use Koinly to generate the tax return form, otherwise, a handwritten letter was all they wanted with brief summary, no details.
It's still so new to them this whole crypto thing, they probably won't care for a couple of hundred over the last 3 years! Tax year of 20/21 might be different as earnings are a little more! I'd speak to your brother in law and get his opinion on it, if still unsure then contact IRS (I guess you're from USA?) - our equivalent in the UK were really helpful actually.
Thanks for the kind words about the tune too! I'm hoping I can work on more music now that my mind is at rest a little more with the tax stuff!
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Yeah, good ole IRS. I have heard that this year there is a question right at the very top of the tax form about crypto. I am not sure how in depth they are going to try to get with people. My hope is that like you said, it is still so new as long as you can produce a couple forms they won't dig into it too much.
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Yeah I think they will find their feet with it but will probably go after those who are reporting more than us (like 5, 6 figures) than what we're looking at. Unless you've been getting millions haha!
To be fair, I did bust out the fountain pen when I wrote the letter to HMRC whilst making my declarations of the past couple of tax years - if that doesn't put me in their good, I don't know what will!
(Apart from paying them my dues of course)!
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If I ever make millions, they are more than welcome to take their cut!
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As I learn more about crypto I realize how much I don't know. Every day I seem to open doors to new knowledge but with that comes a whole slew of new questions.
As far as crypto accounting, I have to admit I haven't done a very good job. Which is strange because I'm usually a geek that will start an Excel spreadsheet for everything. Maybe I thought it would never amount to much, who knows.
Taxes will be interesting this year. My income has been way down the last few years after dramatic lifestyle changes. Just starting to receive some retirement benefits but that won't really come into play until next year. I guess my plan is to try and catch up the accounting of crypto for the last couple years, fill out the forms, and hope the IRS is to busy to look to close at a poor citizen like myself. :)
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Haha yeah I'm hoping HMRC (which is the UK version of IRS) will look at the slightly bigger fish than someone like me with not even 4 figure earnings!
I have to admit, the last month going back through everything has been a mind numbing but stressful experience! It's worth getting your accounting in order just to put your mind at rest but I'd speak to a financial/tax advisor first to get their opinion. If still unsure, contact IRS. If they are as helpful as HMRC are on the phone, nothing to worry about and they will point you in the right direction, even if you have to be on hold for 30 minutes and speak to 3 separate people! As long as you explain how you've earned it and looking for advice, it's all OK!
Questions lead to more questions, I know that one! I've learned to stop asking questions in some instances 😂
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Nicely done on the phone call, I can feel a weight has been lifted, and there is now room for some tunage :D
Haha ah mate, the sleepless nights were no joke 😂 massive weight lifted, feel like a new man! Clear conscience for the studio again
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No wonder you went quiet for the month, been wondering what you up to. Well done plucking up the courage to phone and query, rather safe than sorry.
Accounting is a nightmare with what some government tax laws, most are totally unaware, until you start drawing down into fiat. New in most countries so best to start checking requirements now.
Enjoyed your mind music to listen to while reading and replying, thanks and keep going strong!
@tipu curate
Upvoted 👌 (Mana: 24/48) Liquid rewards.
Yeah it's been at the forefront of my mind along with other things but once I tracked everything back to when I first started, I then had something to speak to HMRC about which helped!
Everything needs to be accounted for here in the UK so the hardest bit was getting the ducks in a line. And there were 2,300 ducks! However, it's always good to keep track of everything, cover your back and then you can crack on!
I won't be leaving it 3 years again until I next update my records that's for sure!
Thanks for tipu too!
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So long as you have managed to get up to date now you are able to concentrate on moving forward again, so have fun!
Nicky! Reading this made me so happy for you! An enormous weight lifted, I am sure - after agonising for so long!
I hope that now you have the "space" to continue your crypto journey....we miss you hanging
onaround the chain....Hey Fiona! Yes a big weight lifted thank you! It's definitely made me think twice about accounting and being on top of all my transactions! The slate should hopefully be clean once HMRC get the letter and what I owe but amazing what happens when you just "ask" and have your stuff in check. Feel like I the fog is clearing a lot more one month in to 2021!
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Happy to hear you finally got some answers and are in a better space my friend! I know that was weighing on you greatly, and you already have plenty on your shoulders elsewhere. Hopefully that white board is mostly clear again on the tax front anyway. ;)
Thanks P2P! Yes, one of the many things that were on my shoulders here. Just had to step back, focus on it and get this accounting malarkey done! Now to clear the rest of the stuff off these shoulders - it's nice to have a clear section on that whiteboard that doesn't have the "T" word in haha!!
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Another banger m8.
Listening to this as I do some charting and set my position on a BTC to ETH trade.
Music to do crypto by 😂
Thanks for sharing Nicky.
Haha thanks mate! Could be the crypto anthem! Hope you've been riding those waves nicely! Got a few more releases this year coming up that will be up your street too, funnily enough, going to be centered around Space and the Moon theme :D
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What a fantastic track. I love dNb and jungle. I used to DJ in the 90s and started out as a dNb dj spinning mostly jump up. Then started spinning funky breaks. I don't dj or mix anymore much but when I do I like spinning deep house and sometimes minimal. Absolutely loved this track!
Good luck on your taxes. HIVE taxes are a nightmare. Starting to keep track of these myself now. Working on a spreadsheet for the accountant. In short it would be nice if they charged us tax when we cash out to fiat. Seems fair and easy. Till someone approaches this issue with common sense I guess we are stuck in this nightmare of crypto accounting!
Post more tracks! Loved this.
Yesssss!! Another DnB head! Thanks for checking this one out, you're an OG in DnB then, the era of Bukem et al? I'm more in to the liquid funk myself, used to have a livestream monthly show the last few years but the station we were broadcasting on went under and we stopped it in December. We may spin back up again but think we're taking the time to recharge and come back later in the year!
Oh yeah, the Hive taxes are a law unto themselves. I've basically gone for the route of 100% power up with posts and comments, it's only when a power down completes that I'll need to worry about income tax after speaking to HMRC earlier and my accountant friend. Anything that comes in to your account from another account (i.e. an account you don't own) is taxable but if it's from an exchange then it's just a transfer (not taxable). Regarding Hive-Engine, tax calculators don't recognise the value of those tokens and the markets are so thin that prices can fluctuate more than BTC! So I'm going for the approach that whatever I withdraw from H-E to my Hive account will count as income at the moment because it's impossible to know the value otherwise, unl. However, I'm now just going to be drastically reducing my taxable events and frequency of moving things around!
Having said all that, HMRC didn't really seem to want any info other than just the headline amount to declare as income and capital gains profit/losses. It's always good to keep track of all your crypto movements though! I guess you're from USA or UK - set yourself up on Koinly, it will sync a lot of exchanges automatically and HiveSQL is a great tool to pull data off the chain should you need it!
But if you're unsure, definitely speak to an accountant or HMRC/IRS/Your local tax authority for clarity!
Anyway, I'll be posting more DnB and Trance tunes for sure!
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Yeah, LTJ Bukem, Aphrodite, DJ Dara and so many more. Great time for dNb for sure. Loved the jump up style stuff.
Thanks for the HiveSQL info, I'll look into that for sure.
Ah the jump up stuff, a little too heavy for me but if one dropped into a mix that I was feeling, I wouldn't be too upset if it's mixed in right! Nothing wrong to break up the liquid vibes with a little filth!
No worries, if you have any questions, just shout out!
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Oh, memories, little brother! I think this was our first collaboration for album artworks ❤️
I think it was too little sister! That feels like a long time ago now - we've got a lot of cool projects done since then!
Indeed! :)
Man these tax guys really have you guys by the balls 😆
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Lol, they've just straight up taken my balls mate 😆
Man that shit crazy. How do they have so much time to track everyone? Isn't there someone you can bribe to make them look away like premiere league refs when an Arsenal player is fouled in the box?
Random Message Of Kindess
Wassup Nicky? Don't trip, I just started doing this, you're not even my first. I remember when you'd split, come back, promote D&B here and then on other platforms. I'm glad you decided to bring your music back here and thanks for supporting my content.
Ah Mr Days! Great to see you around these parts again! Glad you're enjoying this one. I do need to share more tunes but been feeling the crypto stuff recently and been going with the flow!
Hope you're alright! Will check out your last Damn Days ramblings if you have any blogs you want to highlight, drop a link!
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Ah, c'mon! All of them! I'm so overwhelmed with the attention I'm receiving these days, Nicky, it's humbling as shit! Virtual, not virtual, doesn't matter. Being accepted feels good. So, stop by any time, there's a couple to choose from, maybe one will be all yours.
If you'd like to know a little more about R M O K, I did a short and sweet description the other day. Happy Sunday, sir!