Have you tried reporting HIVE income on your taxes?

in #waiviolast year

Because if you did, you would know how frustrating and daugnting this task really is.

For starters, in many jursidictions income must be recorded when cryptocurrency is credited to the user account, rather than at the time of withdrawal and conversion into the local currency.

The next question is what exchange rate to use. Due to the high volatility of HIVE, averaging exchange rates in a way that would not cause a dispute with the tax authority might be challenging. The most transparent way to do it is to report each transaction using the daily exchange rate for both HIVE and HBD.

Withdrawals also should be calculated in a similar way. Even small payments and tips should be accounted for.

In order to solve this problem Waivio.com now offers advance reporting for Hive wallets:

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Each transaction in the report includes the daily exchange rates for both HIVE and HBD. Please note that for transactions before March 20, 2020 (date of the Hive hardfork), STEEM and SBD rates will be used instead.

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All transactions are divided into three groups: Deposits (D), Withdrawals (W), and Internal transactions, such as power ups or moving funds into and out of Savings.

Please specify the dates (from-till) to see the total amounts of deposits and withdrawals for the specified period. It may take some time to retrieve all the data.

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If you want to exclude some transactions from the totals (e.g. deposit of own funds to the account or conversion of HBD to HIVE via an external exchange), please mark them using the checkboxes in the left column:

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These exceptions are automatically saved under the account you are currently logged into.

If you have multiple accounts on Hive, you can combine them all into one report. In this case, all transactions between the accounts will be recognized as internal and excluded from the calculation of total deposits and withdrawals.

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Advanced financial reports can be generated in various currencies. At the time of this release, in addition to U.S. dollars, reports can also be generated in Canadian dollars using historical exchange rates as provided by the Bank of Canada.

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The advanced reports were developed at the request of Waivio partners for annual tax reporting, but we hope they can simplify tax reporting for many Hive users as well.

Dislclaimer: The information provided by Waivio.com, including financial reports, is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness.

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Hello!

I was just informed of the Waivio frontend, having written a post enquiring about crypto and tax, and this seems like such a fantastic addition! However, I'm having a few issues with logging into Waivio using Hivesigner (I'm getting an error where it's not broadcasting my attempted transaction thus I'm unable to sign in) and I was wondering if you were planning on adding Keychain compatibility at some point?

Cheers!

Thank you for your interest in the Waivio frontend for Hive.

The trick with Hivesigner is that the first time you use it for a new app you need to use Active Key, after that Posting Key is sufficient. If your problem with Hivesigner is different, please share some screenshots (please make sure no keys are captured) and share it on Waivio Discord (https://discord.gg/9mE69tDJ).

Regarding Keychain: it does not work on smartphones and most of our users prefer to use the service on their phones. That's why we are hesitant to add this option. Thanks for the suggestion!

Ahh! Thanks. 🙂 I was using my Posting key; the Active key worked a treat.

"Regarding Keychain: it does not work on smartphones" WHAAAT???
I haven't tried it myself, but the keychain devs are working on the IOS and android apps for months now, while receiving funding from the HDF.

I would be really surprised if it does not work on smarphones 😂.

If you want to grow your platform, you should not exclude customers that prefer keychain. I'd prefer keychain any time of the day over Hivesigner.

This is an excellent question. Keychain is a convenient and secure tool for authorizing Hive transactions in the Chrome/Brave/Firefox desktop browsers. And we'd all love to see the same level of perfection on smartphones.

The Keychain mobile app offers standard wallet operations (transfers, power-ups, etc.) and on top of that, it offers a built-in bowser. And the only way users can access Hive.blog, Peakd.com or Waivio.com is through this built-in bowser in the Keychain app.

And as you said:

I haven't tried it myself

Other users are also reluctant to do so.

It's especially hard for new users. Imagine their frustration when they learn that in addition to all the complexities of Hive, they are also limited to using Hive apps via a dedicated browser, which they don't have.

If you were to access Hive.blog on a phone, you would either have to give your posting keys directly or use Hivesigner (no Keychain). Peakd offers exactly the same set of options (no Keychain).

If you want to grow your platform, you should not exclude customers that prefer keychain.

This is a good point still. We'll look into adding Keychain for desktop users who already have Keychain extension installed.

First of all, thanks for your reply.
Can you explain the following:

"and on top of that, it offers a built-in bowser. And the only way users can access Hive.blog, Peakd.com or Waivio.com is through this built-in bowser in the Keychain app."
What is the downside to using this built in browser in the app?

"limited to using Hive apps via a dedicated browser, which they don't have."
Why don't they have it? You just said the browser is built into the app.

That's awesome. This will save so much annoying manual labour.

Thank you! We plan to add daily exchange rates for other currencies as well, including the Australian dollar.

Recently we have observed wide fluctuations in fiat currencies, and the use of daily rates enables accurate financial reporting.

Greetings @grampo, I find very interesting all this system to keep the data of bank movements, taking into account the constant change of currency in Hive, it seems to me a very good methodology offered by the team @waivio, thanks for providing this good information, I think it is a very good way to keep the data of bank movements, taking into account the constant change of currency in Hive, it seems to me a very good methodology offered by the team @waivio, thanks for providing this good information.

This is a really, really cool feature. Very impressive! 🙏

HIVE and HBD exchange rates are always fluctuating and Waivio now keeps the entire history of daily rates, including the Steem epoch :-) Same goes and for the ten top world currencies, including the Canadian dollar.

Using Excel spreadsheet to create a similar report will take a long time, since every tiny transaction must be accounted for.

I totally agree, and this feature would help my accountants so much. As crypto grows and more people earn more through it, they're going to be pretty hungry for stuff like this, I imagine. Great job and thank you! 🙏

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Check out the last post from @hivebuzz:

Hive Power Up Day - July 1st 2021 - Hive Power Delegation

Lovely! Thank you!

I'm aware that I'm posting this months and months after this was published... but a lovely and IMO necessary, quality of life improvement here is to export this data to a csv.

Thanks for the suggestion, exporting the data in CSV format for further processing can be very useful, indeed.

Thanks for sharing, In the Netherlands we have deductible items for expenses you make! Can I also see how many up vote's I've given? That could be a deductible item. As an investment in my community!

When you cast an upvote, you do not spend any HIVE from your account. In other words, you still have exactly the same amount of HIVE and Hive Power as before you cast an upvote.

Therefore, an upvote cannot be presented as an expense.

At the same time, whatever the value of your upvote is, you're going to earn about half of that as a curation reward. And that income, you must include in your tax return.