it will…
what’s the status of this? has MAID ERC20 been launched yet? will we be penalized if we don’t convert within a certain timeframe?
You only need to convert if you want to. Omni MAID will be exchanged to SNT when the time comes as it always has been.
You may want to convert (some) Omni MAID to eMAID for trading or getting a better price for selling. eMAID will also be able to be directly converted to SNT
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This eMAID thing causes some serious headache to me personally, if it is possible only for a limited time period. I’ll explain:
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There is (increased) risk, that OMNI MAID will become obsolete after eMAID becomes available.
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Conversion from OMNI MAID to eMAID is taxable event in my country.
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If I want to trade my holdings before network launches, I need to convert them to eMAID.
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We have a law that you can uses the 20% of your asset selling price as a purchase price. For example, if I sell my MAID for 1€, it is OK to state that I bought it at the pirce of 20 cents, even though I actually paid only 5 cents or so. If I have held more than 10 years, it is OK to use 40% price. So say that the best case scenario happens and MAID/eMAID/SNT is priced at 1000€, I can state 400€ as a purchase price. BUT this system is strictly FIFO (first in first out), so all the various trades out of OMNI MAID consumes the first ones I have bought, so cuts into the stack that is closest to getting the 40% purchase price.
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Now, if I have to convert my OMNI MAID into eMAID, I have to pay the capital gains tax according to 20% purchase price and it will reset my counter to zero, postponing the next possibility for 40% for ten years.
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If there is a deadline for conversion, and no way around it, then if I don’t convert in due time, I risk not being able to trade at all.
So it causes some serious headscratching…
Nevertheless, I am also concerned about OMNI MAID getting dropped from the exchanges we now have, even if there wouldn’t be eMAID, and because of that the eMAID is welcome option. But in my case it is not a good thing only.
I just hope for significant price increase before the conversion deadline (if there will be such) hits, then I wouldn’t need to worry that much. If there would not be a deadline, I could convert in chunks at the rate I am willing to sell.
So:
In a way, I would be penalized, yes. But it all depends on legislation.
There has been no mention of any limited time for conversion
No matter what happens as long as BTC remains the Omni MAID will exist safely even if no exchanges will trade with it.
Actually even if BTC fails the OMNI MAID can still be honoured on exchange to SNT
Its when people want to trade that may require conversion to eMAID if no exchange will take Omni MAID. At this time Bittrex has said nothing about removing it.
Once eMAID is trading then Omni MAID will likely be close in price to eMAID as mentioned above
Those converting to eMAID will need to consider if it has tax implications for their situation as @Toivo mentions.
Are you absolutely certain such a conversion is a taxable event? It should be just like moving your stocks from one savings account to another, e.g. from Nordea to Nordnet. If it isn’t, that’s just plain robbery.
Say what you will about the Russians but, in my experience, one can even negotiate with street muggers there. No such niceties in Finland, though.
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Actually I am not. I should maybe try to ask from tax officials, and if I do, I’ll let you and other possible Finnish people here know. My experience with asking from them is just little a bad: A year or two ago I asked for some advice in how to deal with some crypto related stuff. I was escalated to a person a couple of steps above basic customer service but s/he could not give a clear answer, so I ended up doing things my own way. (I don’t remember what is was about exactly, but probably something about “using a wide brush” when it comes to reporting very many very small trades.) So far no complaints, but my policy has always been about paying “at least enough”, so if there are questions, at least I have not done anything in order to escape my duties. Yes,I pay a price for that, but after crazy year of trading in 2017-2018 I just couldn’t be bothered to make sense of all those tiny, tiny trades in maybe 30 cryptocurrencies in maybe 6 exchanges which all log and sort them in different formats… Nightmare… After that I have switched myself from a trader to a holder. I only sell when I absolutely have to. OK, I have done maybe five small trades between cryptos since 2018, but when it became taxable, it practically ended my trading.
I guess that speaks volumes about your negotiation skills. Or is this just an indirect way of saying you had gun? 
That’s true. Finland is a very good system, but very non-negotiable. If you fall a little bit off from the available categories, there is not much you can do about it.
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Yeah if my omni maid is 1000 USD now and it is swapped for 1000 USD of eMAID, how can this even be seen as taxable event? No value is ever gained.
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Yes, it seems against common sense, but with taxman you should not trust common sense, only the letter of the book.
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When you exchange one asset for another the values should always be the same, so that’s not what determines if it triggers a taxable event. What matters are the rules in your jurisdiction.
If they say conversion triggers a taxable event, then you will be taxed on the change in value from when you acquired the first asset. The value of the second is not relevant until you sell (exchange) that for something else.
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No. The muggers did. And they had a knife to my friend’s throat. Long story. Maybe I’ll tell you some time. But I ended up with the mugger’s shoes and didn’t have to walk through the snow barefoot, and I got to keep my library card. So it’s all good.
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I’d like to be there when this story is being told please 
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Yeah me too
I’m curious as to wether you were walking barefoot in the snow already, or swapped shoes with the mugger?
(Sorry for OT, maybe move to Saschas mugger negotiations topic 
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Which country are you in?
Speaking to my accountant in the UK it sounds like if you have no option then it is ok not to class it as a taxable event. So if Omni gets removed from all exchanges you really don’t have much choice if you want to sell.
The other thing to note, if the tax man does count it as a taxable event, then you can wait until you want to sell, do the swap and sell straight away, so the taxable event only happens when it would have been a traditional taxable event if that makes sense?
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Yes, the problem really only exists if you have to do the swap before you would sell otherwise. Let’s wait and see the official announcement when it comes to find out if there is a deadline or not.
I live in Finland, so different tax policies.
okay.
Best to look into your tax rules for when companies merge and shares change name. Also a stock / share split will be worth looking into. If there’s no tax for them, you shouldn’t have to pay tax for this kind of scenario. Some accountant’s may interpret it differently though due to lack of understanding / crypto being a new asset.
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Beta has wrapped. For announcement of the full launch, I suggest keeping a very close eye on the forum this week
There’s no penalty as participation is entirely optional. More information on timing will be shared with the official launch announcements.
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If omni maid drops in price a lot because of this (not sure it will), and theres a tax event to come with converting to eMaid, wouldn’t that be basically forcing everyone to trade and pay a tax event? I guess if you’re a holder mostly, you would only need to trade to eMaid as needed. Then wait patiently for SNT—which I imagine would reflect the higher price of either omni or erc20 at the time (if not flat out rising way above either). That last fact should instill confidence for those holding Omni while watching the ticker for eMaid (provided the latter is generally higher), and just ignoring the price of Omni. So yeah, not forced! Answered my own question probably.
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no, just the ones that actually want to sell. you can keep the onmi no matter the price. because they will be basically the same value (1 safe coin) as the erc20.
nobody will force you to convert and it’s not like liquidity will decrease because of the conversion. we don’t have liquidity as it is in omni.
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I can feel why people feel they’re being forced to swap eventually, and I think they’re right. If you want the opportunity to sell your coins before network goes live, your best bet is to swap to eMAID as you’re guaranteed to have a place to sell through DEX’s. Even though nobody is encouraging exchange (to my knowledge) to swap omni maid to eMAID, liquidity on omni maid is going to drop even further and delisting is in my opinion inevitable.
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