Taxes on crypto are getting too complicated and dangerous:
https://www.reddit.com/r/tax/comments/9tcnu8/did_i_ruin_my_life_by_trading_crypto/
The problems are the following:
1. The tax code for crypto is ambiguous, there is no widely agreed upon way to calculate taxes.
2. When exchanges fail, the trading information is lost, so it can be impossible to calculate trading gains and losses.
3. Accounting fees can be very high for crypto trading, sometimes more than the actual money made.
4. It is possible to owe more in taxes than was actually cashed out.
5. The rules change, and some of those changes are retroactive, so even if taxes are filed correctly today, in future tax collectors can claim that the taxes were not filed correctly and impose arbitrary penalties.
Devcoin is worth very little, but the accounting fees and risks are still high. It's a lot of hassle for little gain.
Because of this, unfortunately, I am going to resign from devcoin, until taxes are simplified or there's a big tax free cryptocoin jurisdiction, which I don't expect to happen for a long time if ever.
I don't want anyone to get in trouble because of something I'm doing or developing. I'll do the accounting for round 94, after that devcoin developers can handle the receiver files however they want.
I'm sorry for leaving. I wish there was another way, but I don't see one.
https://www.reddit.com/r/tax/comments/9tcnu8/did_i_ruin_my_life_by_trading_crypto/
The problems are the following:
1. The tax code for crypto is ambiguous, there is no widely agreed upon way to calculate taxes.
2. When exchanges fail, the trading information is lost, so it can be impossible to calculate trading gains and losses.
3. Accounting fees can be very high for crypto trading, sometimes more than the actual money made.
4. It is possible to owe more in taxes than was actually cashed out.
5. The rules change, and some of those changes are retroactive, so even if taxes are filed correctly today, in future tax collectors can claim that the taxes were not filed correctly and impose arbitrary penalties.
Devcoin is worth very little, but the accounting fees and risks are still high. It's a lot of hassle for little gain.
Because of this, unfortunately, I am going to resign from devcoin, until taxes are simplified or there's a big tax free cryptocoin jurisdiction, which I don't expect to happen for a long time if ever.
I don't want anyone to get in trouble because of something I'm doing or developing. I'll do the accounting for round 94, after that devcoin developers can handle the receiver files however they want.
I'm sorry for leaving. I wish there was another way, but I don't see one.
Unthinkingbit,
You are much revered and much appreciated in the DeVCoin community. Thank you for all of your service to this project for so many years.
Since this decision is tax-driven, is it possible you can continue until the end of your current tax year?
The additional time will allow us to communicate and vote of the options available for continuation of the receiver file functions.
ctya
