cryptotax

Made some good progress on the crypto accounting today, just ~3000 transactions left to review 😛 Got a first capital gains calculation going and it looks… expensive.

gm. Fulltime degen, building fun stuff onchain. 
Master of Disaster Frogworks, /ottodao bullfrog, ex @astaria

Luckily capital gains tax in Germany is flat 25% while income tax is progressive and can go as high as 45%

Hosts /the-library — Moderates /gen-art /deca /newmasters
— Designs graphics + UI / Crafts code + technology / Collects art / Loves books / Builds community

Need to review this with my tax advisor. Generally airdrops are considered income but if you declare it as real tips it would be seen as tax free gifts.

How do you guys tax received Degen tips? Is that income?

Here in South Africa if you held the crypto as a speculative investment (eg less than a year), your profit will be taxed as income tax (top bracket is also 45%). 

And you would almost certainly be registering for provisional tax I.e. you’d hold onto that profit for at most 6mo before needing to pay it over.

Ask me how I know 😭