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Cryptocurrency tax - Capital gains vs income tax

  • 02-11-2018 11:25am
    #1
    Registered Users Posts: 9 ✭✭✭ canijustask


    Hey guys, I have a question regarding taxation of cryptocurrencies.

    I asked an accountant how this is taxed and he said that both Capital gains AND income tax applies. He made it sound like i would have to pay 33% and then pay income tax as well? That can't be right? That would be nearly 60% for me?

    I read an article (can't share because I'm a new user) and it makes the distinction: if you're "investing" in cryptocurrencies then you are taxed Capital gains. If you're a "trader" then you pay income tax.

    So my question is if I'm an "investor", do I just have to pay Capital gains @ 33% (on the profit) when I cash out, or will I have to pay Income tax on top of this as well? Thanks


Comments

  • Registered Users Posts: 1,434 ✭✭✭ Austria!


    Do you buy and sell multiple times a month? Is trading your main source of income? Would you personally think buying and selling imaginary internet coins is like a job for you, even like a part time job in terms of the amount of time you spend at it, or how seriously you take it? If not, then pay CGT.


  • Registered Users Posts: 9 ✭✭✭ canijustask


    No, I've made deposits but have never cashed out. I've traded coins but quite infrequently. It would definitely be classed as an investment. My question really was if I'm to pay CGT is that the only tax? This accountant made it sound like I'd have to pay CGT AND income tax as well. I presume he was talking s*it but just wanted to double check. Thanks for your response.


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