Not sure about the exact tax laws were you are, but were I sit, you have to account for every sat you've bought to calculate your cost basis and then calculate capital gains/losses every time you sell. That means moving the sats around changes nothing.
Sats received through other means need to be accounted for too, at different costbasis depending on why you got them. Gifted sats at a cost basis of 0 (essentially making your purchase sats more expensive to sell), mined sats at spot price basis. Sats you got from goods and services go at spot price at the time of payment and also require you to pay VAT (~25% of the received fiat value). Sats in any account with your name are (even the IOUs from exchanges/mining pools) are considered yours a soon as they land on your balance.
Sats you pay for goods and services are considered as sold for fiat and that fiat used to pay, so you should declare capital wins/losses everytime you spend sats. That includes network fees.
Not complying is almost a given considering how extremely hard it is to follow all the above and keep track of it all. Yet, it's on you if you don't. Flip side, it's too hard for them to check you do all by the book, so they'll mostly believe whatever you say. Once you make peace with the fact that even if you try, you won't comply 100%, it's a short road towards "If even trying I won't comply, why try at all"
Beerborn
npub16u…vnevp
2023-11-22 20:42:38
in reply to nevent1q…tp7f
Author Public Key
npub16up8472yajrceaxq72yz4an7lggw0s6esgg7rm74k8fh3khsesjs6vnevpPublished at
2023-11-22 20:42:38Event JSON
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"content": "Not sure about the exact tax laws were you are, but were I sit, you have to account for every sat you've bought to calculate your cost basis and then calculate capital gains/losses every time you sell. That means moving the sats around changes nothing. \n\nSats received through other means need to be accounted for too, at different costbasis depending on why you got them. Gifted sats at a cost basis of 0 (essentially making your purchase sats more expensive to sell), mined sats at spot price basis. Sats you got from goods and services go at spot price at the time of payment and also require you to pay VAT (~25% of the received fiat value). Sats in any account with your name are (even the IOUs from exchanges/mining pools) are considered yours a soon as they land on your balance.\n\nSats you pay for goods and services are considered as sold for fiat and that fiat used to pay, so you should declare capital wins/losses everytime you spend sats. That includes network fees.\n\nNot complying is almost a given considering how extremely hard it is to follow all the above and keep track of it all. Yet, it's on you if you don't. Flip side, it's too hard for them to check you do all by the book, so they'll mostly believe whatever you say. Once you make peace with the fact that even if you try, you won't comply 100%, it's a short road towards \"If even trying I won't comply, why try at all\"",
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