Crypto tax situation - Read post 1 for thread banned users

You said you bought 7 years ago. Since then, the BTC blockchain has been forked - copied - several times. The copies contain the same information from the original blockchain at the time they forked, but get a different coin name, so if you owned one bitcoin when it forked, you will automatically own that same coin in the new forked blockchain, even if the name of the coin is different.

This only really applies if you actually owned the BTC and have the keys to it, not if they are/were on an exchange.

They keys to your BTC will be the same on the new chains/coins, so be very carefull if your holdings are non trivial in value, because if those keys fall into the wrong hands (fake/malicious wallet) while trying to access the forked blockchains, they will rapidly be used to tranfer your original and high value BTC to the fake wallet creator.

There is a quick way of accessing the forked coins and a safe way. The safe way is you export your BTC wallet keys, you then create a second BTC wallet and transfer your BTC to this new wallet from the original wallet. This creates a new set of keys for the BTC. The set of keys you exported before making the transfer, are still valid for the forked coins, so you can safely load those keys into wallets for those forked coins, because even in the unlikely event you use a malicious wallet, your original BTC are now safe. Obviously you could lose the forked coins, but that is less of a financial hit.

Forked coins €:

Bitcoin Cash - BCH 587.49

Bitcoin BTG - 57.59

Bitcoin SV (Satoshi Vision) - 154.41

Bitcoin Private BTCP - 2.91

Bitcoin Diamond BCD -1.76

etc

https://99bitcoins.com/bitcoin-forks/

I heard some US influencers and others talk about depositing their crypto somewhere, not selling it, but borrowing against it as this limits or negates taxable events? Apparently this goes on in traditional finance also. Others have also suggested to me using a limited company could mean taxes are cheaper than 33%? I just got into this around October last year so before the end of the year I made if anything a few hundred, if I was not actually at a loss. This year things are different. Happy to learn there is some pressure off and I have time to get things in order.

We would like everything to be above board and taxes paid but it is complicated:

My partner and I (not married, not civil partner) both had accounts on different exchanges where our funds were pooled but for the most part when it was in an account in my name the balance was very close to the several thousand we deposited over a few months as little profits were made, though later this year when the funds were in an account in her name we saw significant gains. We would prefer if taxes were just paid in either my name or hers rather than both, is there a good way to do this, perhaps by just withdrawing from my own account exactly what I put in leaving the balance at zero, and then paying taxes on profits from either our combined amount or just her initial amount?

The funds have been through so many different CEX, some KYC, some not, and so many different DEX trades and different Metamasks, network bridges, risky smart contracts etc. and considering what we would like to do with just one of us paying the taxes, piecing it altogether will be incredibly difficult. We never expected things to go so well so we did not keep proper records or track of old wallets with nothing left in them. Will it suffice to just go through our bank statements (or just hers?), work out the total we ever deposited, subtract it from the total we withdraw leaving all accounts at zero, and then pay 33% of that?

Where can I find a good accountant or financial advisor well versed in crypto? There are very few that come up when searching online.

Oh I didn't realise they had an option specifically for Ireland! Cheers

Any reported loss, automatically carries forward and is available as an offset against profits in future years.

Yup - FIFO applies here in Ireland

I was just replying to the thread in general, I was reading some of the earlier posts and people seemed to be unsure re the Irish position.

Very basic question here, first time CGT payer.

I understand you need to pay the tax first in December (for that year until November), and then file it later, before November the following year.

Why then do I see this rush / people putting in a lot of work for the filing date in November? Don't you already have to have had all your calculations done 11 months earlier (in order to pay it)? And the November date should just be like showing your workings?

Or am I reading it wrong, and the bulk of the work is actually always for the December date every year, rather than the November date.

Sorry again for the basic question.

Thanks. That explains it.

Has anyone here payed CGT for sale of NFT's, I have some questions, thanks.

Yes. Assuming that you've sold at a profit, you've realised a gain regardless of where it is. CGT can be due on the sale, gift or exchange of an asset.

Yes. Ireland's tax regime is vicious. It appears to be designed to intentionally discourage people from investing, or if they do, limit as much as possible any benefit they might get from doing so, while bending over backwards for corporate entitties like REITs. In other countries they let people have investment accounts where you only pay CGT on money coming out of the account, ring fencing transactions that happen between the account and investments. But thats other countries.

Don't forget you have a miserly CGT relief of the first €1,270 of profit being exempt CGT.

I have plans the emigrate to New Zealand. Currently no CGT, no death duties, no VRT, no DIRT, GST(VAT) of 15%, no CGT on imputed sale of ETFs you haven't sold, petrol is 10c cheaper and the weather and healthcare are a lot better. Houses are mind bendingly expensive and of poor quality, but there's always something.

Found this brilliant YouTube channel by two Irish lads who explain in detail how to file CGT and income taxes for crypto and everything else:

Dude. Before you start booking your trip, I pointed out to you not too long ago on another thread (although maybe it was after the post I am quoting), that you will be taxed on gains from crypto in NZ.

I'm not telling you this to pis$ you off. I'm telling you just in case you actually arrive there and realise you might as well have stayed in Ireland as regards being taxed

Volume of transactions is just one factor. Essentially, if you're carrying on a trade, you pay income tax on the profits of the trade, even if the trade is dealing in securities or other assets. But if you;re making investments, the gains from your investments are not the profits of a trade and are not subject to income tax. Until some time in the mid-1970s they were wholly tax-free, but it became politically embarrassing that some people were making obscene amounts of money from property speculation and paying no tax, so CGT was introduced.

So, if you make money by buying and selling assets, which tax you pay depends on whether your activity of buying and selling assets amounts to a trade or business (income tax) or doesn't (capital gains tax). In most cases the answer is perfectly clear - when you buy a picture from an art dealer you're making an investment, but he's carrying on a trade - but there are always going to be borderline cases. They are decided by looking at a range of factors - the nature of the activity the taxpayer is engaging in; how much time the taxpayer spends on it; whether he holds assets long-term or trades them actively; how frequently he engages in the activity; whether he does ancillary work to make the activity more profitable (e.g. if you buy, restore or enhance, and then sell assets that's more likely to be trading than if you simply bought and sold them in the same condition); his motive for the transaction (e.g. is he buying artwork to hang on the wall, or simply because he expects it to appreciate in value?); etc, etc. A holistic view of all the circumstances has to be taken, and circumstances are different in every case, so there is no simple universal rule that can be laid down as to when activity will be trading, and when investment.

It's worth pointing out that when there's a row between a taxpayer and the Revenue over this, nine times out of ten the taxpayer is claiming that his activity is a trade, and the Revenue is denying this. The reason is that the taxpayer has suffered substantial losses in his activity, and he wants to set them off against income from his day job so as to reduce his income tax bill; he can only do this if his activity is a trade.

Ask an accountant.

Yeah they do it first in, first out.

You could always just borrow against your crypto if you don't want to have to deal with tax on it though.