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My take is that with ICN, you have to report dividends to the government and pay taxes on them. But with ICNX, you do not have to pay taxes on them until you sell them.
My take is that with ICN, you have to report dividends to the government and pay taxes on them. But with ICNX, you do not have to pay taxes on them until you sell them.
Good joke man for me. Where those ICNs are rigged to one person
? Or where on ETH network any token have owner ?As you see is IMPOSSIBLE to tax you directly. In EU that works that way you have to sell crypto to fiat make bank transfer and then you report income and pay tax. ICN like ICNX are same in matter of taxation till you sell your dividend for ETH for fiat USD/Euro you have earned 0.
Unrealized profit is not real profit in crypto until you will find fiat buyer you can not say you earned anything.
ICNX and ICN are same in taxation - in my country gains come when you capitalize in fiat profit not by just keeping it.
In stock market people are avoiding keeping cash on account at end of fiscal year they buy stock report 0 income then they sell next day to keep fiat in broker account until you move money in fiat out of stock market you have 0 to pay. This is good tactic in tax dodging.
Besides of that in EU there are countries where you have 0% capital gains
like Estonia.https://en.wikipedia.org/wiki/Capital_gains_tax
But every country is different while your ICN on your ETH wallet are not bound to anyone - but I don't stop you for paying if you really want.
That doesn't fly. I am morally opposed to any taxation, but leagaly speaking, you have to pay taxes on any gains you make, fiat or otherwise. For example if you trade bitcoin for ethereum, you must pay taxes on any gains you made from that trade.
Uh no you don't pay taxes until a profit is realized.
It depends on the jurisdiction and the type of profit we are talking about. In a lot of places like US or Slovenia, there is a distinction between capital gains and income. Making a profit from trading is often considered capital gains. Making a profit from doing a service or mining is often considered income.
A lot of jurisdictions might consider a crypto dividend to be similar to mining, meaning it would be taxed as income based on the fiat exchange rate at the time it was received.
But what if the dividend is in the form of an altcoin that has no direct fiat exchange rate? Or what if the "dividend" is like Bitshares where they burn a portion of the supply to give the same effect as sending a dividend?
It's still a bit unregulated, I haven't seen any regulators even mention a crypto dividend yet.
This is true I should have specified capital gains, I was addressing his example of trading btc to eth which is more clear in my edited version (I have a bad habit of publishing posts and then immediately realizing there is more I wanted to include so I go back and edit it as fast as I can but it's usually too late and people have already replied to my original post).
I imagine a crypto dividend, as with ordinary dividends, will be considered income since no matter what the exchange rate is it is always a profit in a manner similar to mining (although I suppose you could argue that below a certain exchange rate you can actually incur a loss through mining due to electricity expenses). But then when is the amount of profit from the ETH dividend determined? With normal fiat dividends there isn't this extra conversion step. Do you use the exchange rate right as the eth is received, or when you go to sell it, or if you don't sell it is it based on the exchange rate at the time of reporting? If you report profit based on the exchange rate right as the eth comes in, then what happens if you hold onto the eth and its price increases or decreases? Are those now capital gains/losses you need to report too?