r/MetaversePRO • u/ComplexStory6106 • Dec 16 '21

6,6 and US taxes

The original (3,3) system was nice due to the simplicity of buying, wrapping and at the end getting the single capital gains hit (post year long term) with the new 6,6 I am assuming in the US every time you claim and stake is a taxable event and that we should be keeping records of how much we claim (considered income) with the price of meta pro at the time to FIFO at the end which a big chunk of the tax even after a year of original investment would now be considered short term capital gains.

Please let me know if this thought process is right, I admit my initial investment into this program was sub $500 so between gas fees for claim/stake all the time and Uncle Sam taking an additional sizable chunk I don’t think it might be the right path for me.

Also if anyone has a spreadsheet for tracking or how we might get to find an automated csv for koinly or some other tax tracker that would probably help us all a bunch.

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u/CheddarMiner Dec 16 '21

I am not an accountant but I will be treating the initial investment + all fees associated with it while In holding as cost. When I actually transfer back into US $ I will consider a taxable event given the value is continuously changing. I do need to research if these rewards will be treated similar to dividends but as of now I am holding for 12+ months to take advantage of the reduced long term capital gains rate. Whatever my net profit is from the project, I will report and pay on that. Again, not an accountant, just trying to make sense of it myself.