Going strictly by the book, paying tax on Hive income would be an utter nightmare in most countries because each time any token on Hive is credited to our account is a taxable event where income is earned. We should record the dollar value of that token at the time of reception and upon exchanging it for any other token or directly into fiat we we should calculate the gain or loss. There is such a large number of transactions and the token prices are so hard to determine that it becomes completely impossible in practice. For example, your curation rewards are paid out in Vests (Hive Power). How do you determine the dollar value of those Vests? Exactly how many HIVE each Vest is worth is a dynamic variable depending on many factors and it is not stored on chain.

Many years ago, someone developed a script for calculating those values for Steem users but that tool failed to produce correct values.

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