https://twetch.app/t/25373989bd44aea9e284ddd29e764383cf32e8…

What controls is Handcash building into the internal wallet handling systems to allow for management of funds such that tax implications can be appropriately planned for and simplified?

An example of this:
Simple input/output controls for batches (lots, if you're more familiar with accounting terms,) of coins so that a set of coins can be left for a year, then taken from without manual control to ensure long term tax applies?

Essentially...
Lot A is for income streams
Lot B is for spending
Lot C is left for a year

After a year, all switches over (manually or through automation)
Lot A is set aside
Lot B is for income
Lot C is for spending

General accounting principles for inventory management can then be applied... If applicable (pending IRS guidance, perhaps?) average cost basis gets applied to all income so when it becomes the spending lot, all coins have the same average cost.

While not a very sexy feature, this would GREATLY simplify accounting of coins earned and spent for tax purposes. Enable people to mindfully manage their coins.

If Handcash doesn't do this, other wallets should. Otherwise, it's a dance between wallets...

And worse, that dance may create legitimate privacy concerns, as UTXO consolidation when sending between wallets may create privacy leaking events, immutably stored on chain.

The goal isn't anonymity, of course, but I don't want all my funds known by all.

@102, this thread was intended for you.

Thanks for the thread! Very interesting thoughts. We will add automatic monthly reports soon, so you won’t have to do anything besides downloading it. Send me an email to apagut@handcash.io with any deeper questions or suggestions!

I have emailed you with additional information about this idea and the specifics behind my proposal.