collector | curation board member gmStudio

Tax question @shima 

Is degen tipping a “gift” and non taxable or is it like a restaurant server and it’s taxable income?

If this is taxable, what a nightmare.

Congratulations on perhaps being the first person to ask the question! 🍻

The CRA has no public commentary on $DEGEN specifically.  And there are no perfect parallels to draw from. 
(A few casts follow… tax musing,  not tax advice 😆)

However… I might argue that the receipt of $DEGEN tips are valueless until you participate in the airdrop.  At this point it would be income (like most other airdrops).  The value at this point is also more easily measurable.  Timing the income this way, where the gift is « accepted », seems more reasonable.

The sticky parts of trying to argue a « gift », to me, are 1) ownership and 2) value.  The person making the gift never owned the property in the first place. The $DEGEN don’t belong to the donor… they are just allocating FC’s tokens.  The tokens have a demonstrable and measurable cash value.

The person who bestows $DEGEN has received no advantage, which is a good argument towards it being a gift.