How to treat TRS on a tax report

Hey Guys,

since I am currently in the process of creating my tax report for the year 2017 (Germany), I came across the following question regarding the TRS:

How do you treat the AION TRS contract and its monthly payments/rewards tax-based?

If there is an official statement about this, I would greatly appreciate a link.

Thanks in advance!

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That would greatly differ depending on jurisdiction.

You could argue that the tokens are yours upon the closure of the contribution period and when the bonuses were finalized - the smart contract just has to distribute them to you. In this case it may not be considered a taxable event until you sell your tokens, but it entirely depends on jurisdiction.

Any clarification from the Aion Team, at least for tax liability in Canada, may help guide tax implications for everyone.

generally the year u receive is considered tax-able income :)))

I don’t live in Germany, so this may not apply. I am also not an accountant, a lawyer, etc. etc. so all the standard “I may not know anything” disclaimers apply.

Where I live, however, if I pay money for something (like AION), that is not a taxable event (in the investment sense).

So, if I take $1k and buy AION, I have neither gained profit or had a loss (yet), so for all intents and purposes this doesn’t even need to be reported. However, when I trade that AION, or sell that AION, it now has a realized gain or loss in value, which would need to be reported for taxes.

OR, if you mine a cryptocurrency, that should be reported as standard income. (I don’t believe this applies to the TRS since no mining was involved, just purchase of tokens - full disclosure, I missed the TRS so I don’t know all the ins and outs of how that was managed.)

as for TAX-ABLE event i think it’s general true that if people not DOING ANY TRADE (sell, swap etc) then it’s not taxable.

TRS is not taxable event my opinion. That was a PURCHASE.

Missing TRS is an TERRIBLE event. 3.2x more tokens that bought at ICO :((