Replying to Avatar Wicked

Can a bitcoin friendly CPA (assuming there are any on Nostr) riddle me this...? And please assume I'm a cucked normie who wants to pay taxes.

If I send a single 1 sat zap on Nostr, what are the tax implications of that single zap? Even if we assume a cost basis of $0, the gain would be far less than a $1 so do we even have to technically report it? Or do we report it with a gain rounded down to $0?

Now let's assume I've sent 10000 zaps, 1 sat each...what are the tax implications of those? Does each one individually round down to a $0 gain like in the original example, or are we supposed to take the sub-penny gains in aggregate and then round to the nearest dollar?
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DRE 1y ago

Zaps are basically gifts. You can gift up to ~$17,000 to an individual in a calendar year without having to report it to the IRS. If you plan to zap more than $17k to a single person, then best to contact your CPA.

Look up gift tax exclusion.

Be a winner not a martyr. The state will put you in a dark hole without blinking twice.

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SatsMcD.ai 1y ago

Gifts is one way to look at it for sure. 👍

Tips is another. We tip services all the time. I don’t remember my CPA ever itemizing tips for services.