Since 2014 all US citizens, residents and businesses that receive cryptocurrency as payment for products or services have report Cryptocurrency gains on Their Tax Returns! This will include Steemit blogging as well.
- Open your STEEM Wallet
- Look at the Transaction History. For some reason, STEEM Wallet doesn't show exact dates when payouts were received. If you can't find exact date the payment was made, you can estimate it. Also, I recommend recording your payments and expenses right away during the tax year.
- Record your STEEM, SBD and STEEM Power payouts from 01/01/2xxx - 12/31/2xxx. You need to record Mining Payouts, outsourcing Mining payouts, Rewards from posts, comments, upvotes. Do not record gifts or tips if they don’t exceed $14,000 per year per person. You have to calculate STEEM AND SBD separately.
- Found out each closing value of STEEM and SBD. On the date STEEM, SBD and STEEM Power were received. For STEEM use STEEM closing value, for Steem Dollar and Steem Power use SBD Closing Value.
To Convert Payouts To Dollars (You have to do it for every transaction):
Multiply Each Payout on Historical Price (the closing price that STEEM was traded on the of payout)
Example: On 8/18/2017 my reward was 0.697 SBD and 0.523 Steem Power, $ 0.835063 was the closing price for one unit of STEEM DOLLAR. My income for that day was $1.02 after rounding (0.697+ 0.523) x 0.835063= 1.01877686) - Summarize Each STEEM and SBD Transaction from 01/01/2xxx -12/31/2xxx! (Annual Steemit income)
- Calculate your Dollar, STEEM and SBD expenses. You have to calculate STEEM and SBD expenses separately (Example of expenses: Mining equipment (do not forget to depreciate it), electricity used, mining contracts expenses, payout and maintenance fees, posts promotions, etc.)
To Convert Your post promotion expenses to Dollars (You have to do it for every transaction):
Multiply Each Post Promotion expense on Historical Price (the closing price that SBD was traded on that day)
Example: On 8/18/2017 I promoted my post for 1 SBD, $ 0.835063 was the closing price for one unit. My expense for that day was $1 after rounding up (1 x 0.835063=0.835063 ) - Subtract your expenses.
- Subtract your Total expense From Total Annual Income.
- If you sold your cryptocurrency for cash in the current year, you have to report capital gains or loses as well.
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