We all ma! Come on, come on, come on, come on! So I'm living it up up to everybody that we living it up we say
Come on everyday, typical everyday, one night day, it's just physical I'm a love, you do not gag ya, calling your name, go to phone in the rage and roll over I just really wanna go, you can time hit the note, that's a good chick, for result I'm a holly, this chick, pop me treat this chick
♪ Oh, another episode ♪ ♪ Everybody that living it up ♪ ♪ We say ♪ ♪ I like to ♪ ♪ And all my ladies that be giving it up ♪ ♪ Oh, what? ♪ ♪ To everybody that living it up ♪ ♪ We say ♪ ♪ What? ♪ ♪ To I do ♪ ♪ And all my ladies that be giving it up ♪ ♪ I love you ♪
What a whole day me exactly that's why they showed up with more passion and everything I'm mad at Never leave you alone get the song when I'm home like a song when I'm going people broke my mind to the old be hit it all back first like love Don't miss many so tell me about your hated old and crispy women to win that over battle but you know
♪ I'm a lady, I'm a lady ♪ ♪ I'm a lady, I'm a lady ♪ ♪ I'm a lady, I'm a lady ♪ ♪ I'm a lady, I'm a lady ♪ ♪ Come on, come on, come on ♪ ♪ Come on, come on, come on ♪
Come on, we can ride, live your life, love you so sexy, I just want you next to me a whole lot like a sign, an extra seat, is ain't nothing but an aching baby, I know the world is going crazy, I hope, feel your passion, come when you act, act when you cry, try when you laugh,
But they nothing happened, my girl got a little one time Turned off the light, you know the breath, you're ready yo blast between me and you But we don't alone with the praise you can do, but I thought you do what I do, you know I know it's good, you know that right, like Teddy Peel turn off the lights, just drive it out, take it
♪ No time to surf your mouth ♪ ♪ Everybody that be living it up we say ♪ ♪ I lay two ♪ ♪ And all my ladies that be giving it up ♪ ♪ I want to ♪ ♪ To everybody that be living it up we say ♪ ♪ To I too ♪ ♪ And all my ladies that be giving it up ♪
Everybody that be living it up we said I like to and all my ladies that be giving it up on Everybody that be living it up we said to I do and all my ladies that be giving it up
Come on, we get right Come on, we get right It's my time, who made it? Do a roll, oh, do a roll, I do
Please, in gentle manner, may I have your attention please. It's time for the final countdown. The show starts to change. Five, four,
Good afternoon, good evening and good morning ladies and gentlemen. We're back again. It's the half of morning show episode 12. I can't believe they let us to have done 11 episodes and they get into 12th shot at it too. So you know we're just going to chill it
We're going to talk to meat here. Shout out to meat by the way coming on the show. We're going to talk all things tax we're going to get to that. Man, it's been a crazy 24 hours, crazy 24 hours. Ordinals are just continuing to melt faces. I think bears are up over 0.01 Bitcoin, which doesn't sound like a lot, but I think it's like four
$500, so not bad. Not bad. Knowledge is like, you know, taking over the charts. Like, knowledge is like five of the top 10 projects in Bitcoin ordinals as well. So, you know, there's that OMB is three Bitcoin still holding that floor strong. There's heap of talk about all rules. It's like everything else doesn't matter at the moment. So yeah,
crazy times. I think OXP2, BRC20s are up a little bit as well. So heaps of stuff there. Moving over to Salona, Madlads, they're trying to push that 100 sole floor. They really want to get there. They're stuck in the late 90s, but I think we're going to see one of them whales just come in and sweep the last, you know, 10 or 20 of them and get them#
the line. I think they will be 100 very soon. Currently with their royalties they are over 100 but the actual floor price shows 97 or something last time I checked. So they're trying hard to get there to be the first to break that 100 barrier since, you know, since D God's left other than SMB. Soul casinos up a bit as well. 45 soul.
I think they're just progressively getting higher as more of their NFTs are locked up and a lot of people are just getting some revs share back there. Shout to them. We've got the Gizmo Gazette again today. We'll go through all the things happening in all your discord so you don't have to. And then, yeah, we'll talk to meet. Meet, how are we going, friend?
Yeah, I'm doing good man doing good. It's it's been a busy day I wrote but happy to be here man Thanks for having me up as a co-host and I know tax is a pretty boring and painful subject for a lot of people but glad to be up here chatting about it. Yeah, no, I think I mean it's not boring when I mean it's boring when you talk about it like just every day but
So, I mean, people don't understand how to tax in terms of crypto and NFTs and how it all works. So, you know, I think we have, I spoke to, I mean, is it Harry Dell that came into the Aussie Doud chat last year, this time about last year? Yeah, yeah, would have been Harry Delfish, yeah. And make like the stuff
feel saying like no one knew like anything about any of this like everyone's like oh we're just not gonna claim anything she had a don't actually claim stuff I definitely don't advise that and look with especially here at dollars and I mean we chose when we first set out to launch
netrunner. We chose to support the UK, USA, Australia and Canada for the simple fact that the governing bodies in those regions all view crypto and NFTs from a very similar light whilst the percentages that you're taxed on from a capital gains perspective differ from region to region and some of the cost-bases
methods are a little different. The kind of underlying principles is the way that they view those assets and the types of transactions that we make and how they are viewed from a tax perspective are pretty similar across the board. But for us Aussies, I mean tax season is almost here. It's the end of my interview with St. Alde-Ads on TV for
and they'd be in holders to go out and buy new equipment, buy new cars, claim the instant asset right off and that kind of thing. But it's a good time to now be thinking about reconciling your transactions and getting your, I guess, accounts in order for lack of a better term, but really trying to, I guess, sort out the mess that would be your transaction history for the past.
financial year so that contacts time when your account says, "Hey, I've got a notification in your ATO online portal that says you've been trading crypto. Can you give me your transaction history?" And most people, whether account says that, their jaws hit the ground, they're like, "Wait, how do you know I've been trading crypto?" And the simple fact is, if you've ever came
I see on a centralized exchange or on a licensed centralized exchange here in Australia, those exchanges are required to submit that KYC or know your customer data back to the ATO. So any bank account that's been linked, full name, email address, all that
basic data that's on your KYC exchange account, that information gets reported back to the ATO. Now, a lot of people think, like you said, that they can just, I guess, not report on things and that they're somewhat anonymous, but, you know, you, if you think about it, right, blockchain is a public
ledger and it's not very hard to track where funds go once they leave a wallet go to another and the ATO and various scuffing bodies across the world have been working on various forms of what they call their data mapping or data matching programs and they're basically following the trail of funds.
and being able to create this spider web of wallets that frequently interact and understand, okay, well, Jared KYC did it, this exchange, he on ramped $500 in Osie Dollar and Fiat and he bought Soul and then he sent that Solana to this particular wallet address and then that wallet has been interacting with
these five wallets, minting and flipping a bunch of NFTs. Yes, he hasn't off-frame any of that profit, but we can see all of these transactions and we can assume that his account balance should be this, therefore we would have this kind of tax standing. So the tech is certainly there, the ability for them to really get
into the weeds and start looking at your transactions and being able to view which wallets are yours and those things you're transacting with. The ability for them to do all that's there whether they're going to go to that length is questionable and I think it's more so if you get audited then I'll go down that trail but for the most part the one thing that
they're running to realize is if they've ever used a centralized exchange, the ATO has that on record and they've basically the last couple of years have been automatically sending notifications to, you know, if you frequently use an accountant and they have access to your ATO portal or join access to that, they'll get a notification saying that you trade crypto and they need
they expect to see that on your personal tax return or you'll leave it in a letter in the mail that says, "Hey, we know you've been trading crypto. We expect to see it on this year's tax return if not here's the potential list of consequences." So, you know, they aren't certainly turning their attention to it. Sydney Morning Herald and a couple of other news outlets.
late last week, we're sharing some articles. No new information was published in that, but that topic started to come back up around crypto and tax time. But now, after the NFT bull market, and people seeing the amount of money that was made late 2021, early 2022, that started to become, I guess, a
our sole topic of discussion and the A2s have been leaning towards, hey, if you're trading in FTs, we need to know about it because there are tax implications there from a capital gains perspective. So it can be pretty technical pretty quickly, but they definitely turn their attention to it.
What I want to do first, I know there's a few hands up, what I want to do is I want you to just give you give us like a sort of a minute breakdown of what your project does and what it can do and what it actually does for us and then we're going to start going through the hands. Now I know a lot of people are a bit scared to talk about
about tax because they might feel like they've sounded a bit silly and stuff. If you have any questions, go down to the little speech bubble bottom right hand corner, add your questions in there, we're going to go through them with meat as well. This is a pretty pardon the pun, a meaty subject, it does take time and there's a lot of things about this, but we're going to try and get through as much as we can.
answer everyone's questions as best we can. If we have time, I will go through the news of the day, but I really think this, especially because most of us are Australians here, this is a pretty predominant Australian space. I think a lot of us can benefit from a lot of these talks and actually facing the fact that hey, look, if you've made money this year, you probably should be declaring it and you know,
paying the tax for it. So, mate, I'm going to give you about a minute just to run through what your project does, what your tools do, and then we'll go through some hands. Yeah, sure thing. And look, in terms of what that runner is, basically, we've built the most powerful portfolio manager in tax reporting app for Salana specific
and FT traders and enjoyers. And the reason for that is because we were looking for tools to use ourselves as individuals, little over 12, 14 months ago, and could really find anything that was providing adequate support and tooling for Solana and FT traders due to the various types of transactions.
We perform the volume of transactions that we perform and we really felt that there was a huge need for that to exist. So essentially NetRunner in its current state is a web app, connect all of your Salana wallets and basically pull up all of your historical trades, transaction histories.
see your unrealized profit loss, you can see your realized profit loss, you can see what your current positions are and your NFTs go in Solana as well as Edola values and then you can go through the TaxiPorting tool and start reconciling transactions and based
Basically categorize them according to the cost basis rules that we have to follow here in Australia and then produce a summarized report or a capital gains report that you can either use to file your tax yourself or to give to your account and they'll do it on your behalf. And we do all that at a fraction of a cost of what any
the tools that are currently available can compete with in a sense that sold traders and the volume of transactions that our average trader performs here are significantly higher than most NFT traders on any other blockchain with respect to how cheap and fast it is to
to transact here. We've got a little over 13,000 wallets connected to our site currently and we've reconciled a bit over 65 million transactions at the moment. The volume of transactions per user is absolutely through the fucking roof.
Yeah dude 100% where we're just complete DGens. I mean you see me flipping things for like 0.1 soldered. That's my life. That's how I do it and it will get into some like you know crazy questions here, but we'll start off with nifty nifty how are you today dude? Yeah, I'm good mate. I'm good
small win that will probably sharpen my tax thing but a couple of questions I've got the NFT I've got NetRunner so something I've just recently acquired so I'm a new holder and working through it.
So I'm guessing that the tax man looks at this really binary, right? Like what goes in and it's changed what comes out? You know, if you buy a thousand dollars worth of crypto and then you sell 20 thousand dollars worth of crypto, you know, they're they're going to want to have, you know, the tax on that 19 thousand.
I personally don't think that they get more sophisticated than that. But the only thing I wanted to ask is I've got like 8 million transactions, including like 12,000 that I need to personally
kind of validate. Does it matter if I say like just ignore them? Yeah, so there's a couple of things to unpack there. So the first thing with regards to what's coming in and out of exchange, only being the only thing the taxman kind of looks at.
I would take that with a grain of salt and they're getting more and more vigilant with looking a little bit further than that that first kind of breadcrumb trail from an exchange, especially with everything that's been happening within the crypto industry. There are some new things kind of popping up, but like I said, they are looking to follow where that on-ramp feed goes and which wallets
it's interacting with so they're able to quite easily follow that across to your fans of the mall. For example, there's all of these NFT related transactions and each one of those transactions has a capital gain or loss associated with it depending on the type of transaction or if you're receiving air drops. For example, if you're receiving
the bag of bonk over Christmas that at the time of receipt is classed as ordinary income for most people depending on their region and specific tax rules. So it's a lot more complex than that and the ATO, IRS, the HMRC, Canadian Revenue
they're all starting to turn their attention to, you know, they're all whysening up. So hey, you know, people are moving money into exchanges and then ascending it out to other wallets and then making all their transactions there and then reporting back only what comes in or out of an exchange whilst there's all these funds sitting over here that have capital gains,
So the thing is right and what I think most people forget is that the technology is evolving, so the regulations around it. And if you have KYC somewhere and they have those kind of records, if you ever get ordered to down the line, they're able to request between 5 to 7 years of your transfer.
action history to then go through. So that's one of those things you either kind of go through the short term pain of reconciling things properly now and trying to make your best efforts at reporting correctly or run the risk of being made an example of in the near future if and when or or
should that occur. So that's the first thing. I would definitely make best efforts to go through and reconcile things appropriately, especially if you're going to be doing this kind of long term. I would want to do it properly on a consistent basis. So while you can see what your potential capital gain or loss may look like on paper, you can prep for taxis in advance. And I'm
month out like we're doing now, you can start to tax loss harvest and start selling stuff or burning rug down FTEs, which I'll get into a bit later, but you can really start to better manage your positions there. So that's the first thing. The second part of that question, with respect to, you know, reconciling all of your
transactions are the ones that require attention and this is something that is individual depending on tolerance as well as depending on what the values of those transactions are. So most of the kind of DIY tax reporting tools provided by the governing bodies and whatnot or the accepted ones won't recognize
anything that's less than two decimal places in terms of dollar value. So if it's less than 0.01 cents of a dollar, those tools won't actually recognize it. So for a lot of the minuscule Salana transactions that won't register anything
more than a third or fourth decimal place, they're not really going to be worth a while. But in terms of the accuracy of your reports, we flag all of the things that are missing either a cost basis or a particular type of transaction label just because of the nature of the beast when it comes to salarter in terms of
to P, transfer loans, OTC trades, all those types of things. So there's a couple things there, but in short to answer your question, no, you don't necessarily need to go through every single one of those transactions, but it would serve you well to sort those through games or losses.
and view the first few pages or a few hundred transactions just at a scroll through and see if there's any major outliers or anything that kind of, you're like, "Oh, why is that showing I lost a couple hundred bucks or a few thousand dollars or potentially gain something that may be missing?"
missing cost basis for an older NFT that you might have bought on a historical marketplace and then finally sold for a win. There's little things like that that may pop up in terms of best efforts and you are right from a binary perspective, they kind of want to know the total amount but at
of the day the accuracy of that report and if there's you know some some major discrepancies year on year that's when you know Ibrale start to get raised so I would suggest it was being your best interest. I'm like I think it is the loner it is like I stopped the chain right like I say I bought a daddy baby the poor Salana right
And then I got that jelly baby and I minted some with soul and some with internet focus the game room. And then I put it in there to create a raft or I then got a second raft to the consequence. Like the follow that across like any software. I'm struggling. I don't think the age of the day could do it.
No, I'd be there, but that's like you're trying to paint everything with the same brush as well, which isn't really beneficial to anyone. Like there's really complicated, I guess, gamification of particular NFT projects and sure, some of those transactions will be a fucking mess, but for the
majority of things. If you think about it like the most common things in terms of buying and selling all token swaps and that kind of thing, staking rewards, very simplified transactions are easy to understand type stuff. I mean look at the end of the day it's up to you as
the consumer and user if you really want to go down that route and run the gauntlet. But with everything that's been going on and the way that they've been cracking down on things and they're kind of stance towards that over the next 12 to 18 months, it wouldn't surprise me if they've got task force kind of ready to go
and using tools like Chainlink or Chain Analysis, sorry to really follow where things are going and put two and two together. And it's just whilst it's a little bit of a pain at the moment, it's a short-term pain for long-term gains, but at the end of the day I can't
tell you what you shouldn't do. I'm not your parents, but I would seek that advice from your accountant or tax lawyer and get their opinion on the subject and then follow their instruction from there. If you need a tool to be able to reconcile that, you know where to go.
- No, sweet as, sweet as. I'm gonna pass over to Outer on, Outer on, come in dude, how are you? - Yeah, thanks Jared. Thanks for having me on the show. Thanks for being here, coming on the show. Yeah, you just haven't got talking, Dan, and I had to get my notebook out. I had a few thoughts coming out, like in this sphere.
I'll just kind of sort of get it running and then pick what you want. Kind of out of that because it is such anytime these kind of conversations to come up, they always seem to have a really lengthy in depth. Yeah, like a fairly heavy conversation. I guess that might be why a lot of us avoid them.
All the time I know I definitely get a bit concerned when someone kind of asked me about that sort of in person and it's like, "Oh, this is a bit of a long conversation." But sometimes I wonder, we're talking about taxing like the crypto sector. Some of the wonder if people actually understand how they're
tax works. Just without this though, I'm not sure whether they necessarily do. Thanks, thanks, thanks, rain. But I do have a couple of net runners. I don't think I'm in the discord. The sort of thing just on my ledger for a while, does
and once I did, there was something I wanted to ask around the, you mentioned in regards to I guess ATO being able to review transaction history or details basically being trading crypto
So I just wanted to get a clarification as well because you said mentioned trading crypto a couple of times. I was curious if that just means any kind of investment in crypto at all or if there's a specific technical term that defines trading versus investing or transferring or
whatever that might be. I mean, because obviously things are going to be technical. I think that's one aspect. I think the other major question I've got is around, just from my experience with people, there seems to be a lot of fear uncertainty in this aspect. And even sort of like the sound of the
I guess advice to the possibility that could happen. Another bit is really very clear. It kind of feels like there's overhanging dark master. You don't know what might or might not happen and the rules are not necessarily that clear. What is a reasonable amount of effort at all?
I mean, and I guess what I can say is this kind of ways, I'd probably definitely see it, ways on people's just general well-being and like in mental health, I mean there's this genuine anxiety, you know, like the threat of the unknown because I guess fundamentally with people feel we don't understand and something that, you know,
is not really clearly defined, um, generates fear. And so I mean, it's like, how much the tension should you be giving it like versus the fear, you know, like the balance because you sort of don't want it to impact the overall well-being of your life. And I guess a second part for that quote
is USA versus Australia. Perhaps it is possible to give us some sort of distinction between the major differences because my kind of view of the USA tax department is they're like ruthless, they'll track you down. If you're in Australia and you have a US
passport, you've got to pay tax twice. I'm not here with American passports, they're trying to get rid of that passport. So I'm not getting taxed by the US. Can we sleep even easier on the Australian side compared to the US? I feel like a lot of fear given most people are from the US.
side of things when they're kind of talking about it is from that US perspective. Yeah, look, I can't really speak to that too much other than I agree with you in terms of the SEC and the IRS being seen as you know the hungry wolves kind of going after people. And I mean, that's due to
to some of the major lawsuits we've seen within the group base in recent years and the way they call it after specific teams and projects and that kind of thing. In one aspect, that fear is kind of warranted. If you are doing the wrong thing, you're probably going to have to be looking over your shoulder
that regard. But at the end of the day, in terms of clarification and seeking clarity around it, the ATO does have a lot of really helpful information that's currently available on their website. It does take a bit of digging to kind of get through it all. And there is a decent amount of, I guess, prerequisite knowledge to make sense of all this, which is
responsibilities that require me to pay taxes. I don't want to get myself in any strife. I'll just do my best to report this stuff. So at the end of the day, what it comes down to is you as an individual, what your, I guess, risk tolerance or risk appetite may be, the way that you're transacting, the volume of money you're
kind of moving around and what other exchanges you're using and things like that. So in terms of the ATO and what they're looking at and the reason why I use the term trading crypto, most people, cryptocurrency has been trading for a lot longer than what NFTs have in terms of at scale. So most people
And most of the articles, rules and regulations around this stuff are all worded towards cryptocurrency and NFTs. And usually NFTs has been an after the fact addition to the information that's there, it's in between closed brackets. These same rules apply to
And I mean, the term cryptocurrency in itself is a little bit misleading because from a tax perspective or a tax treatment perspective, it's not really seen as a currency per se, it's a capital gain asset. And when you're spending that crypto or using that cryptocurrency, say,
Solana to buy or mint an NFT you're creating a disposal. So from a tax treatment perspective, anytime you swap a token for something else or use it to pay for something you're disposing of that original token or that original asset and that disposal generally carries out or is considered to be you know tax
and carries either a capital gain or a capital loss. And this can be really, really confusing and forgive me if I don't explain it very well or maybe not word it very well. But if you think about it in terms of a timeline, so on day one you put $100 into an exchange and use that $100
us to buy Salana or you buy a hundred bucks worth of Salana. However many Salana tokens you got, you got. Now on day 50, that Salana has increased in value and you now decide to go on to Mediketen and buy your first NFT and you buy a mad lad, you pay for
for that NFT using that Solana, you've just disposed of that Solana and then received the NFT. So you have the first part of that transaction which is now a taxable event disposing the Solana. Now the Solana that you acquired 50 days ago, whatever increase in value that it just had is the capital gain that you've just
the NFT that you now own. If that goes up in value and you sell that again, in 24 hours, 40 hours, with the way that NFTs tend to run, it happens quickly. You sell the top, you make another $100 worth of capital gain. Now you've got a total of $125 capital gain, but you're still
have the same amount of soul you had in your wallet to start with because you sold it but soul kept going up against compound or you have more soul in your wallet but the dollar value goes down you dispose of that salana you can realize a loss and it gets very confusing and complex when you're having like multiple things to consider
At the time of the insurance action most people think of their SPL tokens of Salana as the same way they do their regular currency You know buying an NFT the same way you buy a t-shirt or a coffee You're just spending money receiving goods and then you only pay if you then Sell the goods again a second time, and it's not really the way that they're treated for man
tax perspective. So I'm going to stop there. Tell me if that's making sense. If that just confused the shit out of everyone, troll me with laughing emojis down below and I'll try and reword it a little bit better. But if it made sense, give us the hundred sign or a thumbs up. Just so I know I'm keeping everyone engaged. Destructions confused. That's okay. It's
It's a tough one and we've got some guides for our users based in Australia, USA, Canada and the UK that helps kind of break this stuff down in a kind of question and answer type text format. So it's a little bit easier to understand but it is really tricky and this is the thing right so you can connect your wallets to NetRunner and have a look at what you're
position is to begin with and the site makes some assumptions and basically looks at your transaction history and there might be some missing cost basis information. If you've made some pretty large OTC trades and want to say cost basis information, let's say you've done an OTC trade on FFF and you swap
I don't know, three floors for a rare NFT. That transaction and the NFT that you received won't have a cost base. It'll say that you got that for zero or for zero dollars because there was no Salana directly or there was no USDC
equivalent kind of leaving your wallet at that time. So the app can't really make these assumptions. So it'll have a cost basis of zero. If you then sell that rare NFT for 200 sold, it'll just think you've made a fat profit and it'll be 100% profit on that. So you'll go, "Ah, actually no, I bought those three NFTs. Each one cost me
this and this combined would form a cost basis of that NFT. You can transfer things, you can reassign that cost basis to that. So there's all of these really nuanced things that you need to consider when doing this. And it's a bit of a mammoth task. So for people who are quite degenerate in their training behavior,
It can be a bit of a headache and you know my co-founder Mookhouse down there in the listener section he's the real brains behind the back end of the site. He's the one that's been pulling his hair out further last 15 months building the damn thing and we've got some new features that are coming out very soon that'll make life a lot easier for people
with large volumes of transactions to reconcile with being able to create specific rules around quantities and specific tokens and incoming tokens from certain wallets and such and basically creating automated rules so the site will be able to connect to wallets and not quite one click and done but as close
So that is we can without losing accuracy. So it's a mammoth task, both from a developer side of things and from a user side, especially when most people, and this is something that I really want to try and change, right? Is the viewpoints towards this, okay? Because if you, people talk about
investment in this space right if you're looking at these things as investments and you hear for the long so if you hear for the tech yada yada yada then you have to think a little bit more proactively about things like taxation like portfolio management the same way you would any other portfolio right if you're using a
stock trading app plus 500 or eTorror or any of those tools, they have the tax reporting stuff already built in, the types of transactions you perform are much more straightforward than NFTs. But at the end of the day, if we want this stuff to stick around, we're the ones
always saying that we're early, we also have to kind of lead by example to a degree and do things that the right way I guess for this to be more broadly adopted and to make it easier for more people to join in and join the fund and come over to the NFT
party that we all love. But there's a lot of things to realize there. But the first thing is, you know, if you treat this as new investment and you're throwing money at things in the hopes that it's going to go up over time and you don't plan on leaving anytime soon, you probably want to get a better understanding around how the transactions you make
potentially impact your capital gains or capital losses and just understanding, you know, if you've bought a fat bag of NFTs and then the project rugs or floor price absolutely tanks and you're down significantly, you can't actually claim those losses until you dispose.
So simply holding, you know, NFTs to zero is a really terrible investment strategy because you can't claim that loss against anything unless you actually dispose of it. So there's so many nuance things but I could I guess go on and on and on about it for hours. I'll stop talking and let
people ask some questions and I'm about to give specific answers. Yeah, I think my first question is, so I got caught in this last June, right? Like where I'd never reconciled anything back then that runner wasn't really your just minute off the top of my head. I think it was a just coming out in June. You hadn't got
any of the taxation stuff ready, I used another website or whatever and you paid like 200 bucks US or something to use this website and the amount of like I didn't have any cost basis for anything right like so nothing knew what anything was worth since then I do a lot better practice now I actually reconcile monthly every
month, on the 30th of the month or the last day of the month, I actually go through all my transactions, make sure they all have cost basis. And then at the end, when the end of this month comes, like, I don't have to have that worry, like it's already all done. Now, I do have a couple of questions. You said that you pretty much do Salona. Do are you cross-chaining it?
Short answer is no. Long answer is you can import those trades via CSV. Essentialised exchanges will be integrated and automated very, very soon. But if you are trading across multiple chains, if you're doing
you know, NFT trades over on Ethereum or any other blockchain or trading via exchanges, you can export those transactions and then import them into NetRuna via CSV and reconcile everything in the one place. Because this is my question because like my digot is my biggest purchase today and so when we
bridged. This is the way I think of how I think it's happened. So my NFT on Solanagop burned. So literally, like, I've got a massive loss there because I've bought it for X amount of dollars and it's gone for zero because I've burnt it. I then get given or minted a free one on a
Ethereum, right? So I assume that's like two different tax events and it's the only thing I haven't reconciled out my year yet where you tweeted about that, right? Yeah, I did know. Yeah, I've got a bit of a back and forth thread between myself and I think a couple of other people.
I guess the main question is did the Salada Degas actually get burned? Like it left a wall at Amherst Burned? Yeah, it's gone. It's burned. They literally burned them. They're quite insane to the Shadow Realm. They did this time? Yeah, yeah, yeah, and the other ones got burned too. Well, it was funny, you're right.
So what happened is that just for the Lord of Peabody, when they said they burnt the original 535, they actually didn't burn them, they put them into a wallet and just dispose of the case so they couldn't get to them anymore. And it was in this burn wallet essentially. And apparently there was a back
quite into that burn while it where anyone could access it and burn the NFTs for them. So someone actually not part of the project burn those digords eventually not not the actual team, which is quite fun. Yeah, but anyway, that was they'll never do that anyway. I was going to be back on Bitcoin was the thing. But anyway, so yeah, like that's the thing
That's the one transaction I've got pretty much throughout my history. The rest are like trade and shit coins and all that stuff. It's pretty easy when you sort of sit down and figure it out. But the D-God one like is so confusing because it's completely across chain and there's like different taxation events that have happened with that D-God.
And you know some some people are like 15 of these things right so that's my first question the second question I've got right if I jump on my favorite airline VPN and go and play some gambling in Japan and you know on my favorite site gambles and I make a heap of money
How, how, obviously it's illegal online game on Australia. We know that right. It's illegal.
How is that going to be like fan like if I say I look you made six grand, you know, on slots this week. Like how do you tax it like gambling's not taxable in Australia. So I don't understand how we how we figure this out. Um, that's a question that I'm not qualified to.
answer or provide advice on in a recorded space. Definitely not, but I would be very cautious and have things kind of separated there so you can keep easy to keep records of those kind of transactions in one, say, one wallet solely for that so it's easy to kind
to separate and reconcile accordingly. As far as the D God situation though, there's a couple things to consider and I think I commented this way back on that original tweet, you could probably go there and find it because it would be worth it better at time to kind of sit down and
really think it through and write down a proper response in respect to treating it like a forked token or whether it's simply been, you know, worm hold and you can transfer back and forth. So like if you wanted to move that dig old back to Salada, is that a possibility? No, I can't go back.
There's no going back. It's one way wormhole. It's one way. So they've all been burned. You can't go back. And this is the tough thing about the NFT space right in there, the rapid pace of development, the way things change. And I mean, there's no set
in stone rule to that particular transaction because it hasn't really been done before to have an opportunity to go back and review on that side of things. But you know, I would speak to your accountant or tax lawyer. My, I guess, opinion on that would be, it's gone from one wall that you went to
another, although it's on another blockchain, you would assume that it would be considered to be a transfer and the initial cost basis would just carry it over much the same as it would be, you know, for burning an original NFT and then receiving a new one
in terms of an art upgrade or anything else. It would be kind of similar to that scenario. It wasn't like you were part of a blockchain, they forked one and then you still got to keep your original tokens and then they air dropped you all of the new tokens. You had the opportunity to
of sell the original, even though you're worth less, but you could still dispose of them and then carry on with the new tokens. It was like that at all. It's like the original got destroyed and you got a new one in its place, essentially a replacement model. It wouldn't be a huge loss and then
a free NFT that you could potentially sell for 100% gain. And I mean, even if you did leave it as that, the burning of the D-god would have realized the loss of that initial purchase. But now you have the new one that has a zero cost basis.
If you would have then sell that it'll shop as a 100% game Those two would kind of even themselves out although they wouldn't from a true capital gain and and dollar value perspective because the value of Ethereum and Salana on the day that you burnt it will be different to the future date when you potentially sell that NFT
So it would, I guess that, the way you treat that would be more based on your, I guess, personal circumstance and what you plan on doing with it, as to whether or not you transfer the cost basis to that new NFT, assign that there. And then however, even when you choose to sell it, trade it,
do what you will with it. That's already carried across. Or you leave it as is and you sell it and those two numbers will kind of come out in the wash. But if it were me and I was doing it for my personal, I would roll over the cost basis to the current de-god.
If that makes any sense. No, no, 100% agree. I think that's how I'm going to do it. I think that's like when we're speaking about it, like how I was going to do it. Yeah, it's just, you know, like as you said, like NFTs is such a weird thing in the way that we do so many random things with them, which usually taxable is like, don't get taxed that like#
So yeah, just a really weird way of doing things within FTs. We've got about five to ten minutes left. So what I want to do is you want to talk a little bit of tax harvesting and exactly what that is for people in the audience who don't know. So we'll talk about that for a couple of minutes and then we'll go on to some other things. Yeah, cool.
This is something that I think is probably important for a lot of people in the sense that most of us get emotional ear attached to our NFTs and look at them and go fuck. I've lost so much money in that particular NFT, all my bag is down so bad with that collection. But we don't ever sell it because we have this hope that someday it's potentially going to pump again.
and we can kind of recoup some funds. And if it weren't that they come, we generally missed the pump anyway. But what I would suggest is those kind of NFTs, or if you own any NFTs from a rung project that you might have bought into back when Soul was still above $50 or even over $100.
I would suggest looking into either selling them into floor offers or burning them if there's no market for them. So in terms of the losses, so you can look at your portfolio and see how down bad you are. In that run it will show you the sole and fit value which is
is both a feature that's also painful to look at, but it's very important information that can really help you better your trading. But looking at it and kind of going, okay, well, I've got, for example, round figures and I see an easy, so let's say you've got $1,000 in capital games as of right now, would you?
you know, go through your accounts and have a look at everything. It's saying that out of all the trades you've made, you've got a thousand dollars worth of capital gain. There's potentially some tax to be paid on that one thousand dollars and then you go back to your portfolio and you go, "Oh, I've got ten NFTs that I've easily lost a hundred dollars on each of these, but that project rung and I can't
So let's send them all to the soul and scinerator. There's a button on the left hand menu and NetRUN under you can jump straight across there, burn them. And essentially that's realizing the disposal of that asset and burning it for zero dollars is essentially the only way to actually claim that loss. And you can do that to offset your capital
game. Now there's, in terms of if you've got other capital games from other assets and whatnot, let's say you don't have any capital game on your crypto NFTs but you have capital games on other assets that you may have owned and solved during the previous one into a year or the current financial year, sorry.
You can still claim your NFT losses against that capital gain and reduce that amount by, you know, I think it's about up to $3,000 in Australia at the moment. So it's still beneficial to do that and to be able to claim it there. And you can roll those losses forward as well.
There's a couple of quirky things you can do there, but it is important to view what your portfolio looks like and either dispose of through flooring it into an offer or potentially burning those rugged NFTs and the same thing applies to SPL tokens. If you bought a bunch of
And you realize the loss there and then you can do what you will with it later on so that's something that's probably Pretty important for a lot of people right now considering how many projects are down bad and how many people are in the red with their portfolio But may still have some gains from very earlier in the year
Thank you. Thank you. Very important. I mean, you see it here at all time. Andrew tax harvesting. It's very interesting that, you know, people just hold really his rugs in there while it. You know, there's a ton of them you think about them right? Like you, let's just say like reptilian running
guys are up into 40 soul and souls like 50 bucks. Now they're worth like two soul. Like just get rid of it and claim the massive loss against some of your bigger wins because there are people who have big wins too. So what we're going to do now we're going to head over to the Gizmo Gazette and then we'll wrap it all up. Sounds good to me.
That's right, it's the Gizmekers at We Do This Daily. Shoutout to Gizmek353, a fellow Aussie who probably doesn't have any tax issues because he's a very smart kid. Go follow him.
So we'll run through this and then we'll wrap. So DGNA for Academy have released their new Scarface through in V2 Art Sneak Peak. Cool. I think Scarface. Nice. Teo, everyone's favorite robotics program. Hinnock Graphlike Protocol expanding over to Bitcoin in their recent tweet. Dude, don't worry
about the Bitcoin stuff. Just finish your art for pilots. That's where it got. Famous foxes announced world tools as their new partner on their citrus platform. Part of the fees will be going to the world tools treasury. If you haven't checked out world tools, they're doing some awesome shit. They minted around the time. All you know that minted and went really under the radar like pumped
like 125 soil, they're like a full tools suite on the Salana Brock chain, go check them out. And the Galactic Gecko is mentioned in their weekly update that the first Galactic guide item is set to be revealed soon. Gecko's a going cross chain. Sounds like they might be going a bit coin too because at the moment, if you don't
if you're not making it on Salana, you're going a bit going. So that's it for the gearsmogers, Ed. We'll cross back to meet. What's happening, man? I just wanted to give a shout out to Big Daddy Dejan. He's an awesome dude. I've been through some stuff recently who's seen a car or a motorbike accident not long after they meet, kind of an MBI.
for a week while there was in the ICU. Pretty sure the dude was in a induced coma for a couple days, but he's an absolute legend. He's done some really, really cool stuff with world tools. He's got a basically a dev studio for those who aren't aware and they do contractive work across multiple blockchains and it's a very limited collection doing rev
share from that I actually was lucky enough to meet one and big fans so yeah they're doing some really cool stuff. It's nice to see the little guy getting a win. Yeah especially when he he minted around that real crazy time whenever all those big minutes were happening. Salona suit slots you've
you've requested light and the night. What's happening, my friend? Howdy, how's everybody doing? Good man, good. Veta, rap, do you have a question for me or what's happening? I don't. I kind of just have a habit of coming on stage to spaces I've never been at before. I mean, I guess you do the news every day that's cool. I'm just going to say hi.
I am actually going to try net runner though. I'm looking at it now and it looks pretty sick. Nice man, jump in and give it a test run. You can connect to all of it for free. If you want to access the tax reporting side of things you will even need to buy and stake a net runner for 120 days or you can purchase
subscription. If anyone who is listening to the space wants to do so, shoot me DM and I'll hook you up with a 10% discount code that way you can get set up for tax time because it's fast approaching. Yeah, definitely using Australia. If you haven't thought about it yet, you need to be thinking about it now, but that's all we've got time for.
Thank you to me for coming, dude. I appreciate you coming in being our first guest on the show. Talking all about tax, which as I said, not many people like to talk about, but we have to do it. Everyone else, follow all the speakers, including Salana, Sweet Sloth, follow him too. We'll catch you tomorrow. Have a nice night. Peace.
appreciate him and thanks not me Jared thanks for tuning in guys
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