Taxes with NEX exchange

(Vic9t) #1

I know that the tax issue is the big question in crypto, but with NEX being an official security, and NEON Exchange compliant (in the future) with the regulation, we have a more define environment regarding that matter. So I was wondering if there is any plan to “help” the users and stakers with that?

(Len) #2

I think this the complete responsibility will be with the users unfortunately. I’m not sure that there will be a tax reservation on trades? You can always start with reserving an X percentage of funds for it ofcourse. Maybe through a smart contract/API/plugin? I hear a business model :wink:

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(Jump Around) #3

It will be on the user to disclose and track, however, you should be able to look up your history of transactions.

Depending on your jurisdiction it will be taxed differently. It should be fairly consistent across all countries that the staking payouts will be treated as income to you. This should then form the ACB (cost base) of the asset. For example, if your staking payout was 100 NEX worth $1 dollar each, you would have income of $100 to report. The new Tax basis for your asset would now be $100, or $1 dollar per NEX. If you then sold that NEX a month later for $200 FIAT dollars at $2 dollar per NEX, you would have a capital gain of $100 to report on your return (difference between Fair Market Value and Tax Basis). Different countries treat dispositions in various ways though. In some countries If it is disposed of for like kind property (crypto for crypto), it wouldn’t trigger a gain. Where as if it was disposed of for FIAT it that country it may. However, my gut feeling would be that given NEX is a security token, there would be very few like kind dispositions (which is why I will be requesting my staking dividends to be paid out in a utility token like ETH or GAS if possible)

Tax laws are different everywhere, but the income piece and cost base of an asset are typically consistent across jurisdictions. Once you get into dispositions though, it varies greatly. Given the complexities of it, I would suggest looking to a Tax accountant or Lawyer (not HR block).

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