So, financially accounting for crypto is hard. Getting ready for taxes isn't easy. One problem is figuring out how to interpret the IRS guidelines can be tricky, but more fundamental than that is gathering all the transactions you need is hard in part because real degens use lots of tools.
If you're a true degenerate you have a lot of places to gather information-
- Exchanges
- Layer 1 wallets
- layer 2 dexes
- Layer 2 games/platforms
- Multi chain wallets
What's worse and harder is that there's not a lot of tools to help you on Hive. There are software tools available for Ethereum or bitcoin, but not much that I know of for Hive. I'm doing my best to help. It's slow going, but things are steadily moving.
What's additionally worse is trying to figure out how to take those transactions and turn them into book keeping. If you're using bots to trade you could have tens of thousands or even millions of transactions. That's nasty. There's not enough accountants familiar with US accounting rules in developing nations to handle all the degens and all their botted transactions. So, you probably can't even hire a small nation of developing nation accountants to farm out all the book keeping.
Steps to do taxes
- Gather transaction information.
- Process that information.
- Talk with your tax account/attorney.
So, step 1 is gather transactions.
- Print your statements from exchanges
- down load your transactions from dexes.
- If you've used tribaldex or hive-engine you can download a transaction report for the year at tax.tribaldex.com. Right now it just grabs your hive-engine transactions, but we're adding the option to get a report of your hive layer 1 transactions. - That should be out in the next month or so.
- download transactions from your wallets
- If you're playing splinterlands you can download a currency report and that gets you information from there
- Invennium has token transactions available on GLG available via https://goals.genesisleaguesports.com/reports
- We'll add that before too long for arcadecolony as well.
Like I said, there's a lot of places to get information
Once you gather up your transactions you have to categorize them
If you don't have too many transactions you can manually bookkeep them
If you have a hundred to five thousand transactions you can get a bookkeeper to help you
if you have more than you probably need some help automating these things.
Hive-engine has developed software internally that we use to compile large data sets. it spits out data that can be used to essentially build core business data like profit and loss as well as cash flow. We've gotten it working over multiple years to handle tens of millions of transactions. So, it's feeling pretty robust.
If you're dealing with thousands of transactions or more and want some help we may be of service to you.
We have some limited availability to help people with lots of transactions start to process them. If you have a thousands of transactions and don't even really know how to start we can likely give you some major piece of mind.
That said, Hive-engine is not and does not have a CPA or tax accountant on staff. We have programmers that can gather the data you need, get it in a nice format, and hand over to your accountant. Your account doesn't know how to gather transactions or process them on Hive. We do.
If you would like this help feel free to find me in discord and ping me. We're initially charging $150/hr for the services.
https://discord.gg/ExvmhfD for the Hive-Engine discord and just ping me in general chat or DM me.
Anyway, hopefully this can help some people who feel daunted by a high volume of Hive related transactions figure out what they may owe in taxes.
Pipeline to come
We have hive-engine transactions
We are fairly close to helping you gather hive transactions
We have a first version of a portfolio tool working - https://portfolio.dtools.dev/#/
We will be updating the portfolio tool over the course of this year to add tracking and charting so you can see how your account is doing over periods of time
We'll be working with clients to build out more tools to aggregate financial data, condense it, and provide reports you can take to your local accountants to handle your obligations.