Can a bitcoin friendly CPA (assuming there are any on Nostr) riddle me this...? And please assume I'm a cucked normie who wants to pay taxes.
If I send a single 1 sat zap on Nostr, what are the tax implications of that single zap? Even if we assume a cost basis of $0, the gain would be far less than a $1 so do we even have to technically report it? Or do we report it with a gain rounded down to $0?
Now let's assume I've sent 10000 zaps, 1 sat each...what are the tax implications of those? Does each one individually round down to a $0 gain like in the original example, or are we supposed to take the sub-penny gains in aggregate and then round to the nearest dollar?
Replies (12)
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Great question.
Only report your KYC exchange transaction history. No one can enforce the rest.
Zaps are basically gifts. You can gift up to ~$17,000 to an individual in a calendar year without having to report it to the IRS. If you plan to zap more than $17k to a single person, then best to contact your CPA.
Look up gift tax exclusion.
Be a winner not a martyr. The state will put you in a dark hole without blinking twice.
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it’s all BS. We should be able to report capital losses when we transact USDs.
Gifts is one way to look at it for sure. 👍
Tips is another. We tip services all the time. I don’t remember my CPA ever itemizing tips for services.
Not a CPA but maybe this helps
1. I’d like to see the IRS come at me for not reporting <$100 in sats over a multi year period in hundreds of sub penny small transactions to hundreds of people.
2. There’s been no guidelines on subpenny transactions, especially p2p lightning transactions where 1099 isn’t provided.
3. The IRS creating its own Crypto rules without congress approval will quickly get their shit kicked in when any enforceable action is taken. Money and property are different. Money buys property, typically unless in a barter system property cannot buy other property. I can buy a beer with bitcoin I can’t buy a beer with a fraction of a house share.
4. Bitcoin is money and speech. When I send a subpenny transaction adding a note to the transaction also is speech. Limiting free trade and speech is unconstitutional and should be ignored
Just let them deal with it @IRS
Hmmm wonder if the gifting thing applies here. Just claim friends or family and day gifted.
