The UK’s tax collecting department (HMRC) seems to have got good understanding of crypto and the situations where it has decided taxes are due.
I am playing with one of those websites that allow to track your wallets and exchange operations and let you know whether you have income, capital gains and some even produce tax reports. Pretty cool, actually.
After linking my uphold account now it shows my rewards, contributions, etc. and it made me wonder around them:
- How would tax agencies consider common operations with BAT on, for instance, the Brave browser such as earning tokens from ads. Is that income? (The website I’m using tags them as such)
- How about the user that contributes to a website. Is that a gift, donation… ? Is a disposal (hence subject to capital gains)?
- Payments to publishers would be considered income, I guess…?
Whereas initially only selling crypto (and obtain common currency) was subject to CG, now it’s also when exchanging crypto (e.g. BAT <> ETH), which makes things more complicated to follow through. Oh, taxes are confusing!