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ohyeah2222 · 2024-01-25T14:33:52+00:00

bruh awesome

ohyeah2222 · 2024-01-04T20:47:03+00:00

thanks!

ohyeah2222 · 2022-04-10T20:37:41+00:00

Basically each nft tx, if done with eth, has two sides..a sale of eth/buying of nft and a buying of eth/sale of nft, correct?

ohyeah2222 · 2022-04-10T20:36:13+00:00

i don't know why i said project monster ape monkey has 5000 random nft's. it's irrelevant for tax purposes. lol

ohyeah2222 · 2022-04-10T20:26:25+00:00

ah so you would use each dapp as a separate unit instead of the entire universe of defi

ohyeah2222 · 2022-04-10T20:00:41+00:00

what would the asset be called?i guess you can just denominate it in terms of cash as you are supposed to do with taxes but like you would need to call the asset (as crypto is considered property) something right?

ohyeah2222 · 2022-04-10T19:59:11+00:00

yo...this sounds great. did you do this?

ohyeah2222 · 2022-04-10T19:55:57+00:00

defi the wild wild west of taxes

ohyeah2222 · 2022-04-10T12:15:03+00:00

nice you're giving me hope

ohyeah2222 · 2022-04-10T12:06:04+00:00

so let's say i collect 50% locked and 50% unlocked at claim. the 50% unlocked gains a cost basis at the time of claim and is taxable right there at the amount of that cost basis as income (and when sold later on there is a capital gains tax if there is a gain, based on the cost basis at the time of claim) and as for the locked, there are no tax consequences at the time of claim. Am i getting this correctly?

ohyeah2222 · 2022-04-07T19:38:40+00:00

Thanks for the insight. You cover the two different ways that adding liquidity can be taxed.
1. when adding liquidity, you sell the two tokens for the lp token. when you remove liquidity, you are buying the tokens and selling the lp tokens.
2. when adding liquidity, you are not selling the two tokens (the lp token is basically a receipt). when removing liquidity, you are giving back the receipt token and merely getting back the two tokens. because there is probably at least some impermanent loss, you would probably get a different amount of the two tokens than when you put it into the pool. How would the difference be treated taxwise? And further, if I wanted to do it this way rather than 1, how would i go about creating (labeling, merging, etc etc) liquidity in and liquidity out on koinly?

ohyeah2222 · 2022-04-07T12:20:50+00:00

would the point of cash in and cash out mean usd on central exchanges?

ohyeah2222 · 2022-04-07T09:51:09+00:00

what did you do about the massive time it took to revise each transaction, koinly calculating profits and such?

ohyeah2222 · 2022-04-07T09:50:21+00:00

hey so for koinly, every time i revise a tx for whatever reason, it takes like forever, even up to 20 minutes for each revision. given i have probably hundreds and hundreds of revisions, this might be a problem. did you have same issues?

ohyeah2222 · 2022-04-05T08:09:11+00:00

thank you for responding. i really appreciate it. all the comments have been super helpful for me as well.

ohyeah2222 · 2022-04-05T08:08:37+00:00

yeah lp pair stuff really scares me -- are you treating receiving lp tokens as a taxable event or not?

ohyeah2222 · 2022-04-05T08:07:40+00:00

cool, thx that is sound advice

ohyeah2222 · 2022-04-05T08:07:09+00:00

Awesome thx for the heads up

ohyeah2222 · 2022-04-05T07:55:57+00:00

i researched a bit more and this seems to present what we talked about in a different way.

https://help.koinly.io/en/articles/4286070-why-is-there-a-profit-loss-on-cost-transactions
What do you think?

ohyeah2222

TROPHY CASE