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7 years ago in #crypto by rok-sivante (77)
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I was under the impression that you only pay taxes on capital gains once you convert to fiat currency. I'm in the US.
So was I, and hoping for. Though upon further research, seems it might not be that simple.
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I follow this post (even if I am in Europe, Belgium) ! This scare me a lot ! I also tough that we need to convert only when crypto is converted to fiat... that would be more logic in a way.... How can we pay taxes on crypto and the day after the crypto crash...... I really don't understand our gouvernements. And you know what : I am sure they don't really know them self !!!!
yeah, hence the headache. :-/
Wherever the government see there’s money to be made, they want a piece. 🤷♂️
I’m living up north in your neighbor country but it isn’t much clearer when it comes to taxes.
OMG I am not even at that point but it’s a very valuable question and I guess we all need to learn the know-hows. So much that learn Rok. My head is already spinning and smoking.
yeah. tell me about it. lol.
Super struggle these days here
Well if this isn't the question of the day,what is. Anyway I think that if the Government is getting Coinbase records over 20K in purchases, but you purchased well before this years run up... and spent under 20K, even though it is up 12x and you sent it to a private address before then, maybe the question is mute, there will be no issue. Just a thought.
perhaps. though, it's worth keeping in mind that blockchain records ARE public. even if the tax authorities are stumped now, it's quite likely they'll develop the capacity to audit thoroughly later at some point, and very little may be evaded. not worth the risk of avoiding altogether, though not sure how to work best within the grey area that exists at the moment...
No evasion... just a thought, as there are no laws enacted yet. By the way it is theoretically (law) that you claim capital gains when realized (sale), not before. One more thought and only hypothetical... if you leave it until they request it,then the appreciation will be even greater profit... now if it does keep appreciating it will cause double taxation/s... I do not know if this is legal either.
I made a tool that might help a bit with this with respect to Steem earnings. It's what my last two blogs are about. I used the daily average currency historic rates, so you can view/download all transactions that way.
very cool. curious to check it out, as was planning on making such a post regarding whether there was a tool or could be developed one that'd account effectively for Steem earnings, values at time of withdrawals, etc.
Steem is one helluva confusing motherfucker in that regards, because everything gets paid into a pool - so how can we track particularly which Steem was earned when and taken out at what capital gain/loss, when the rate is continually varying and there's no way to clearly distinguish which precise unit of Steem was received and withdrawn when...?
The law is an ass and thats why we dont understand it, the goverment will always be the government.
Taxes can never be paid on crypto its not a local fiat currency sir.
However im glad i saw this, sir Rok
IGNORANCE.
I'd recommend you stop spreading such misconceptions, otherwise you're putting others at risk of following BAD advice that could land them in serious trouble for tax fraud/evasion.
I don't know if that's the case in Nigeria, but it's DEFINITELY not in most first-world countries, and taking such approach would be reckless, irresponsible, and just plain stupid.
pardon the bluntness, but these aren't small matters. I wish your statement were the truth, but were I or anyone else to act as thought it was, we’d not be doing our families a favour by exposing them to the risks associated with ignoring the law.
I think he simply meant that you can't pay your taxes IN crypto. You can't send the government BTC to cover your tax bill.
Not in Canada (at least yet), Although there has been news of a few countries and states where it is now possible...
There is also a very important aspect to mention. If you do a lot of transactions or use financial instruments like trade on margin, you may be considered like a day trader and have (in Canada) to declare your crypto gains as a revenu (not a capital gain). The difference is: you pay 50% less income tax on a capital gain. There is a bulletin on that:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it479r/archived-transactions-securities.html
yes.
kind of sticky, as some of it is subjective and to be determined case-by-case.
I agree, but if you choose to declare as capital gains and you are clearly in the day trading interpretation, you may expose yourself to penalties in the future. If you are in a grey zone, then you may end up with interests fees only (if you win your case, that is). In my opinion, you don't want to be used as an example by centralized zealous officials, so it may be preferable to consult a specialist in the matter.
Agreed.
If day trading, that’s clearly black-and-white. A few trades per month held over longer timeframes... fair game to push the capital gains angle...