How to avoid SmartRewards in local wallet - Taxing Issue


#1

Hi ,

this question seems to be odd but from a tax perspective it is not at all; There are some rules for taxing in my location;

a) buy a coin - if you let it untouched (no selling) for 356days+ you have then not to pay taxes at all! which is very good!!!

b) if a coin supports interests - and here smartrewards come into play - tax free selling is only after a period of 10 years!!!

So I have know SmartCash in my local wallet and beyond 1000 coins your are in the SmartReward Game but then also in the 10 year taxing game.

Is there a way to reject/disable SmartRewards for an address for that reason?

Currently I think no - only choicees I had

a) put back to exchange : not a good idea
b) divide all amount of coins into pieces < 1000

For taxing reason an option would be fine to disable Smart Rewards for an address

cheers
/Tron


#2

Could you move it once a month in order to keep it from getting rewards? Its not selling if you move it to a different address within your wallet?


#3

Move 1 coin away from your adress once a month and your adress is no longer eligible for smartrewards


#4

just send .001 out each month and invalidate your address.


#5

Hmm this is lot of manual work, but thanks for Feedback!
/Tron


#6

I’ve raised the question of allowing automatic payments on Slack or Discord some time ago and it was deemed interesting. The devs had a lot of work with the upcoming SmartNodes, but we could raise the topic again.


#7

keep 999 in your wallet and 1 on exchange


#8

I don’t think is more lucrative to go the way you are thinking. Tax can be high, but Smart Rewards will pay way more than any taxes you have to pay.

For example, if Smart Rewards averages on 4% monthly, and you have 1000 SMART at the start of the year, you will have around 1600 SMART at the end of the year. Unless you have to pay more than 35% tax, you will be better with the Smart Rewards active.

In 10 years it gets way more interesting… You will have more than 110k SMART on your wallet, and unless your government charges you 99%, you will make a big profit on Rewards.


#9

Thank you for calcuaktion indeed I will take a part untouced and the rest of coins in pieces to lower 1000;
Your calualtion looks promising but:
a) in 10 years or less for some reason SmartCash Coin/Blockchain could be disappeared
b) the SmartReward will go down after a couple of years
c) also the amount of SmartCash Coins is limited

But in the end it could still pay out!
thanks
/Tron


#10

Hi Karl, that would be fine; indeed the whole Coin-Community is not thinking too much about taxes; which could get complicated :wink:
/Tron