Nothing can be said to be certain, except death and taxes
It’s that time of the year again that we all typically dread when it comes to figuring out our taxes. Especially so for those of us in the crypto space where the rules are varied and sometime ambiguous.
I’m happy to present a simple income estimator for the Ark DPOS ecosystem that was created in collaboration with Delegate Arkmoon who provided the front end functionality. It is still a work in progress and will continue to evolve but it’s at a point where it’s ready to be used. The tool will calculate potential income (e.g., staking rewards and transfers in from non-exchange accounts) as well as potential capital gains or losses from selling (classified as short term or long term depending on timing).
I’ve included a few screenshots of what the site looks like. The tool can be accessed at http://ark.dpos.tax
A few things to note:
- This is meant to be an estimator and is not considered tax advice. Please consult a tax professional in your respective jurisdiction as needed.
- The tool will display your buys and sells and a summary tab. All of which can be exported to excel.
- The tool only needs the public key for your ark address to run it’s calculations. You can also exclude certain transactions if warranted. For example over a year ago an ark user accidentally sent my account 14,000 Ark which I returned. As such I excluded those 2 transaction ID’s from the calculation process.
- The tool will NOT work properly on a delegate account if you have forged blocks so I would advise not using it for those.
- The tool will take all of your accounts and order transactions accordingly for tax lotting purposes. It will also take care of transfers in and out of all the accounts by only considering the fees vs a true buy/sell transaction.
- Income is considered any staking rewards (as identified from coming from a delegate account) and any other transfers in that can’t be attributed to a known exchange wallet.
- If you buy and sell a lot in an exchange account and don’t transfer for a while to your off-exchange account it will impact the market value of your lots coming from exchanges.