Crypto tax situation - Read post 1 for thread banned users

It's a small mans version of what Apple does. They have hundreds of billions in cash, but rather than spend it, some of which would involve transferring it from the 'still ovseas account' in their NY bank to the 'now in the US' account in the same bank, which they would have to pay tax on, they just borrow or issue bonds, because the interest they pay is a tax deduction against profits.

Trading Tax Implications – Income Tax

On the basis that cryptocurrency is looked upon as taxable under CGT for investments, then it can be assumed that ‘traders’ will be taxable in the same manner as traders of stocks, other currencies or shares. That is, the profits from trading will be taxable under Income Tax rules.

Therefore, individuals that are trading in cryptocurrency are required to file an income tax return (Form 11 or Form 12) each year and declare profits made on trading. The profits will be subject to normal income tax rules i.e. PRSI, PAYE and USC Will apply at the relevant rates (Up to 52% tax).

Hello, trying to figure this one out with respect to FIFO

I bought some bitcoin in 2017, at around 2000 eur

Fast forward to this year and im looking to sell some - I understand that when I sell, the gains will be calculated from the cost basis of 2000 eur

My question is simply, does it matter in any way, shape or form how i bought the bitcoin that I now wish to sell? I'm probably answering my own question here :/

The bitcoin I am selling was bought with a loan/margin but is it just the case that the taxable gain will be .... 2022 price - 2017 price ... and that's it?

thank you

that's what I was hoping - at this stage I will probably just hold them as I wouldn't be able to afford the CGT at this point

Whats a good rate matt?

There isn't a set magic number. Google the badges of trade to get an understanding of where your activity may fit. The ebrief below may also help even though it's talking about corporation tax; the concepts are similar.

Anyone know if a trading212 loss in 2020 can still be used to offset capital gains declared in 2022 and onwards?

Will enjoy replying to you in a few years when BTC and ETH have exploded in value again.

As for the tax implications they can move jurisdiction when they are older if they want.

I don't see how this is going to work. If OP takes out a loan and gifts the loan proceeds to his daughter, OP still has to repay the loan at some point. And to do that he will have to dispose of his crypto, thereby generating a charge to CGT (unless the crypto has not appreciated, of course). So all this does is to defer the OP's tax liability, not avoid it. Which means the only loan he can afford to take out is one which he can repay from his crypto proceeds after paying CGT — e.g. if he holds 100k of crypto of which 90k represents accrued gains, on which there is a tax liability of (say) $24k, then the most he can borrow and give to his daughter is (100k - 24k =) 76k.

I'm not seeing how this gives a better result.

Software holds intrinsic value. The more it's used, the more valuable it becomes.

You don't know anything about blockchain but keep that "currency" mindset there if you like.

We are talking about the future of finance, data handling, privacy etc

In your example the OP gives 70k to his kid. But if, instead, he sells the crypto, pays the CGT and gives the kid the net proceeds, he's still giving the kid 70k. So how does your suggestion produce a better outcome for anyone?

Unless the lender is an idiot, or some other security is also offered, the LTV should always reflect a full discount for the CGT liability on disposal of the crypto. If it doesn't, the security offered is inadequate to clear the loan, and why would any lender lend on that basis?

(We also need to consider whether the borrower, when he defaults on the loan and allows the security to be enforced over his crypto, is going to be treated for CGT purposes as disposing of the crypto for the loan proceeds, with a consequential charge to CGT. I leave that question for the honours students.)

Are you describing the method described here, and if so can you confirm it is all completely legal? https://irishfinancial.ie/how-to-avoid-tax-on-crypto-in-ireland/

I have been thinking about how this would work, and any tax implications, taking a loan at the top of the market and not at the top of the market, and if it could offer any benefit when trading rather than investing.

I see others discussing how depending on the number of trades you may be deemed a trader and assessed by PAYE. Have any of you set up a small limited company to be more tax efficient?

...

I don't mind contributing towards my country.