Australia is introducing new legislation around the "right to disconnect". This doesn’t prevent employees from putting in additional hours, but it ensures they have the right to disconnect from ‘unreasonable contact’ outside of designated working hours.
I think the new rules are pretty fair, but it turns out it's a bit of a spicy topic in our startup ecosystem. I thought the engineers in this community would appreciate my response to some of these Musk wannabes.
It does seem a bit controversial to develop a relationship with neovim without approaching emacs. I wonder if they even asked on emacs-devel, I’m sure they’ll have got a friendly response …oh hang on…
Founder of cryptotaxcalculator.io here. First of all I agree the proposed rules aren’t particularly well thought out. The thing is, the 1099 forms that the IRS gets from existing brokers don’t make any sense because as soon as you move funds between exchanges the broker can no longer accurately track the cost basis. Pre-crypto you generally wouldn’t have this problem. From a tax compliance perspective it is an absolute nightmare, and I am sure this is just an ill thought out attempt at trying to make their lives easier. Probably not the best way to go about it though. There is a lot to solve in this space.
One of the underlying problems is that the capital gains tax code itself is designed for a world from a pre-financialized, pre-electronic world from the 1950s. The idea that someone might trade in and out of positions within milliseconds, possibly using complex derivatives or sophisticated leveraged is completely absent from the code. There's nothing in the code that addresses even how to treat trades that are done in the same day. Wash sale rules are literally non-determinable for high frequency traders. There's no guidance whatsoever on when and how derivatives are rolled against the a position in the underlying.
I run a HFT operation, and just computing my US tax returns required thousands of lines of code of custom software. And then to actually file it, I print off a PDF, thousands of pages long of each and every individual trade. Not a CSV, not a data file, literally a printout. As if some IRS accountant is going to manually go through millions of rows line by line with an adding machine.
Ha, I always wondered what HFT tax returns looked like.
Of course, the IRS cannot and will not check every transaction. But I do wonder if they actually verify some subset of the reported transactions, or would this only happen in an audit?
Luckily, never had to go through an audit yet. But spot checking a subset of transactions isn’t actually workable. Because of the wash sale rule, the adjusted basis on any single transaction is path dependent on both the previous and future trades in that symbol.
This is also true of stocks transferred between brokerages -- it's supposed to be transfered with. If it's not, there's a correction line on the 1099 with
a space for accurate cost basis info, and you'd provide the original purchase receipt as an attachment. There might be issues in the space, but cost basis on a transferred equity isn't one of them.
Yes, this is correct. The technical term for this is an "in-kind" transfer, and while it might occasionally allow for things to slip through the cracks, it certainly hasn't stopped capital gain reporting requirements from being both feasible and largely effective.
I am the founder of CryptoTaxCalculator.io and I am not sure where the idea of non traceability on DEXs comes from. Aggregating the transaction history is absolutely possible, all we need is the public wallet address. The real black box is around certain international exchanges that don’t keep appropriate transaction records.
You're right, yes. I was attempting to point out that with a DEX there is no way to enforce record keeping or KYC, and so if someone is determined to avoid tax, then DEXs won't / can't report back to a tax authority.
Australian exchanges, as far as I've gathered, proactively send transaction details to the tax office, or are compelled to do so upon tax office request.
When it comes to public wallet addresses, it becomes up to the individual to voluntarily declare their ownership - such is my understanding.
I will defer to your knowledge and / or expertise if you disagree with my understanding, you need to know this stuff inside out - congrats on founding, and here's to a big future for crypto, you're well placed.
If you bought crypto on a regulated exchange like Coinbase, which does KYC, then it's pretty easy for the government to find out that it was you who funded the address. After that everything's an open book.
Theoretically you could claim that you were paying some other person, but then you'd have to explain what you paid for. And if you ever cash out your crypto to fiat, you'll have a lot more explaining to do.
Privacy technologies would obscure the on-chain transactions but still not help with the basic problem.
Yes, exactly this. As long as the fiat on-ramps and off-ramps are KYC'ed everything that happens in between is an open book. The individual can just use cryptocurrency tax reporting software to provide a trade history for their taxes, and if they don't do that then the IRS can easily track all of their transactions since the IRS will know what addresses they are sending to from exchanges. There's no need for every DEX (or other service) along the way to KYC their users.
As a counterpoint, YFI literally buys back it's token from fees earned from users using their automated yield farming strategy. There are plenty of duds around, but that doesn't make everything a dud.
We have multiple positions open for talented mid and senior software engineers with a strong understanding of JavaScript. Enjoy a highly productive, developer-first work environment.
- No scrum masters
- No daily stand-ups
- Work on challenging problems in the financial domain
- Use Node.JS, React, Redux, Gatsby, Typescript, MongoDB
- Fully remote work environment
Would suit engineers that have a high attention to detail and an appreciation for well-tested, readable code. All roles are full stack with the ability to lean towards FE/BE depending on preference. A demonstrated interest in financial/mathematic/cryptocurrency domains is preferred.
Send your resume to jobs <at> cryptotaxcalculator.io
We have multiple positions open for talented mid and senior software engineers with a strong understanding of JavaScript. Enjoy a highly productive, developer-first work environment.
- No scrum masters
- No daily stand-ups
- Work on challenging problems in the financial domain
- Use Node.JS, React, Redux, Gatsby, Typescript, MongoDB
- Fully remote work environment
Would suit engineers that have a high attention to detail and an appreciation for well-tested, readable code. All roles are full stack with the ability to lean towards FE/BE depending on preference. A demonstrated interest in financial/mathematic/cryptocurrency domains is preferred.
Send your resume to jobs <at> cryptotaxcalculator.io
I think the new rules are pretty fair, but it turns out it's a bit of a spicy topic in our startup ecosystem. I thought the engineers in this community would appreciate my response to some of these Musk wannabes.