Hive Power Taxable?
What do we know, moving forward? Do we continue to stack our coins or do we start powering down? Who knows right? When do we start powering down when it reaches $5 or when it reaches $10 we don’t know, but what I do know about my situation is setting a goal and a percentage of your holdings that you want to withdraw and take profits because at the current moment the only way for us to take any profits is to cash out into fiat... and if your like me and you live in the United States... in California more specifically you cashing out into fiat makes you eligible to pay capital gains taxes... 🤔 maybe.
Looking at it this way when is it the most profitable to cash out let’s talk about hive couple of times I’ve seen some people talk about taxes and about the Hive power and liquid hive what is taxable what is income and is ours to claim?
Are pending rewards already our income or as soon as they hit or wallet is it our income or is it our income as soon as we cash it out because if you power up hive is that an investment of itself and is that countable as capital gains if you cash out all I know is at the current state the only way you’ll get taxed is if you go from hive to fiat.
And so in conclusion the hive power that we have is not ours unless we Power it all down to 100% and take it does that make sense or am I going to far into it?
Don’t mind me, just some medicated thoughts on the matter.
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BEER.I think @nealmcspadden commented on this before and came to similar conclusion as you.
Obviously, he can explain this more eloquently than I'm doing here.
I did and did.
HIVE Power is effectively an escrow account held on your behalf by the blockchain. You can't spend it, you can't trade it. So it's not yours.
If you want to get into the weeds, HIVE and HBD received from posts are not capital gains. They are ordinary income and have self-employment tax considerations. The price at which HIVE/HBD are trading that day then becomes your basis for capital gains if and when you trade them later.
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!ENGAGE 30
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ENGAGEtokens.Recommend any tools or sites if you never kept good records? Even if just for YTD vs full Hive Year.
I always thought it would be viewed as constructive receipt, interesting it's not until powered down.
The laws really need to be changed in favor of crypto freedom.
My thoughts... unless I get a 1099... they can suck my whatever part they want to suck, lol. Not financial advise... lol...
Yep let's just smoke some weed and think about things I'm just going to allow all this to accumulate and turn into a big huge snowball.
We will see how things work out on taxes and all that..
However maybe one of these days we will be able to have a place to go grow our own buds
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Check out the last post from @hivebuzz:
Having to work out what is and isn't taxable and it's value at the time of transaction is bad enough but trying to get access to that data is a whole 'nother level. For example, despite a number of people as well as myself searching with various tools, I have been unable to ascertain what the size of my Hive airdrop was. You'd think that would be fairly straight forward. But apparently not.
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