Cryptocurrencies are here to stay. However, this does not mean that crypto will supersede FIAT in the short or middle term nor do we believe that any crypto investor living on a governed ground should provide a sore point to his own person due to his personal financial decisions. Taxes have to be paid.
Taxes are paid in FIAT and even if they are paid in crypto like at least two states in the US are seriously pursuing right now, taxes still have to be calculated. That is not an easy task for the casual and even for the experienced crypto investor who has not reached his moon, yet. This day will come for each individual and it will create headaches how exactly his tax authority is treating yet unknown territory.
We, I mean you too, want to help out. In an open source project, we want to provide a tool for personal research on your current tax situation regarding your crypto-financial situation. This should be offline, secure, open source and in your own control and decisions.
## The Project
Soon, we will open a GitHub repository where everyone can take his favorite role if he likes to lay hands on. We would like to start up the project in the interpreting script language Python as the main language. Python 3 to be exact. We believe this is performant enough for the scope of the project and easy enough that even interested non-programmers can learn super fast. Also, code interested people coming from another main language read python like pseudo code.
While Python will handle the backend work, there is need of a frontend. For rapid code-prototyping and since the whole project is targeting an offline usage, we would like to use a local webserver with a PHP/JS/HTML/CSS GUI. Our goal is to expand this to binary packages for Linux, macOS and Windows at the first major release.
The project will start with a simple tax calculation method like FIFO and an CSV list of trades on an example exchange as proof of concept. The more participants’ PRs come in, the faster we can specialize different countries’ calculation methods, tax percentages and legislations.
The first GUI output should be a clear compilation of taxable events as well as a figure of the amount to be taxed and the value to refund to the tax authority. Additionally, there should be a generated conclusion regarding the crypto tax legislation of the considered country to further education of the user.
## How is this funded?
Well, it isn’t. Funding is needed for time non-voluntarily spent. We do spend time for this as a group of friends, fully voluntarily. However, you who want to participate, might not. We have thought of that and came up with two ideas:
* Repository PRs wear your Bitcoin address. This will receive donations from project viewers or whoever wants to donate. Since we are living in an economical world, maybe the feature of your PR is desperately needed which is reflected in the average amount donated to your PR. This is a clear indicator to address it fast.
* There could be created a smart contract (e. g. on the ethereum blockchain) which is funded by donations and the output heights each timeframe are voted by all commiters and equally distributed across the commits of this timeframe.
Whatever it will be, we know you make the right decision in the open source project. By the way, we intend to use the
MIT License for the project.
## Who is “we”?
Regarding the future project, “we” is everyone participating, contributing and using the open source code and program. Right now “we” are students, long lurkers of r/bitcoin, newbe crypto investors with more losses than gains and curious observers of the coming months and more important the coming years in the crypto scene.
“We” believe Bitcoin is not only changing the way we interact with money, but a disruptive movement how ownership is handled in the world. Blockchain is the key technology, cryptocurrencies are phenomena of change but Bitcoin is the community which is here to stay. Ask yourself who is meant with the last “we”.
## Help is Wanted
While this is an introducing post for the intended project, we are relying on your help in the project. We would like to have the code work for your country, for your governmental institution, for your tax, for you. So please, comment, suggest, propose, criticize and most importantly participate. Help us now by committing your opinion to the following questions:
* Why is this probably the worst idea in the “new” newsfeed of r/bitcoin?
* Which concerns do you have?
* What feature is needed and why?
* Where is the crux of the matter?
* Are you willing to participate?
* Why is your countries tax regulation up in the priority list?
* What is your priority list in general?
* Where can this project get resources from?
* How should local bitcoins be handled?
* Why is your favorite exchange high in the priority list?
* Do you know the current tax situation in your governance?
* Are you a legal advisor regarding taxes and establishing a new field of business in the crypto scene? Are you feared of your business model? Remember, you can participate with valuable input. We are not taking away your customer who wants to get rid of time consuming procedures. We want to let the educated and interested crypto investor make pre-calculations before he is choosing the way he is getting his taxes done – maybe by you.
* Is the MIT License the wrong choice? Tell us why.
* Do you have a fancy name? We do have one but maybe yours is better. Be sure to be credited.
### Disclaimer (for this post and for the open source project)
This content and the related project does not provide tax, legal or accounting advice. The material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
**TL;DR:** We are starting an open source tax calculation project. Read up and decide to participate or tell us why this is not something you want.
**Info:** This post might be edited in the time you are reading or commenting. Edits will be tracked below:
* Here is just the void, yet.