Hi there,
I think it would be really helpful if we could record the corresponding fiat value of every transaction (in USD or EUR for example) at the time the transaction occurred for tax purposes.
Is this something that would be doable? I understand that the wallets read the blockchain and there’s no record there, but maybe daedalus could get the rate at the time of the transaction and store it locally.
This would be incredibly useful for tax purposes and save a lot of headache for users.
Unfortunately, it’s not that simple. There are different fiat/ADA rates in different places, and people will very often go to ADA via other cryptos in which case the tax people want that factored in. Best either to keep detailed records yourself, or use a service that does it all for you such as cointracking or koinly.
Ah right, yes, that does make it significantly more complicated alright.
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I am not a legal expert, but in most jurisdiction wouldn’t the tax apply when you convert from crypto to fiat? So when you convert your crypto (ADA in this case) to fiat, you can just get the receipt for the conversion and keep that record.
I apologize for not directly answering your question, but I think this is the best we can do at this time. As RobJF pointed out, the fiat–ADA rate varies depending on which converter/exchange you are using.
I don’t think so. Here in Sweden capital gains tax is paid on gains from every transaction, to fiat or other crypto.
I talked to friends in Ireland and when they checked the law it was the same there. Prior to that we all thought tax was paid on cashing out, not the case, for us at least.
Also, here as best I understand rewards for staking are counted as income and taxed as such.