Ripple (XRPUSD)

[MindlessSelf]

Here is my interpretation. Flr is entirely separate from xrp when determining tax. Once you are in possession of your flr, the value on that day is declared as taxable income that you have made for the year. Then when you sell it, you will have to declare a capital gains. So a bit of a tax nightmare that we are inheriting.

Now one silver lining, the first air drop of 15% of flr we will receive on day one should have a value of 0.00 since it has never been traded before. IOUs are not a real way to value on the asset.

After that, every month we will receive 2 to 3% more of our flr and that will be taxable on the trading price on day we receive it.

So if the value of flare holds, we will have a lot of taxable income to declare this year. And that means we will be forced to sell and we will have to sell even more to cover taxable gains.

David swchwartz entered the debate and agrees. The more we receive on day one the better because we will receive our first flr at 0 and there will be no taxable income.

So while flare was trying to release the supply in a stable manner, they are doing it in a way that is harming us from a tax standpoint. We need to be discussing this daily with everyone and we need to try and force change. We need a larger distribution up front so we are able to hodl our assets. This way forces us to liquidate most of our holdings.