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Need an accountant that is up to speed on crypto

  • 25-08-2021 6:23pm
    #1
    Registered Users Posts: 5 pnp7


    Hi guys.

    I wanted to post in the tax thread itself but my post would be towards the end of the page and I wanted to avoid being possibly overlooked.

    I had a complete misconception about the whole tax situation and reading through the tax thread has put the fear of god into me. I thought I would be liable for tax once I convert into fiat but of course that's not the case at all - it's the difference in price when you dispose of the asset compared to the purchase price. I gather that I will also be charged interest for not properly declaring or paying in time?

    Over the past 4 years I have aggressively been investing in the cryptocurrency markets.

    I have focused on a strategy that consistently has my money working for me in the form of staking, dividends, utilizing a cashback card and occasionally availing of bonus promos that entail depositing amounts of crypto to earn a reward. Any revenue gained would be instantly reinvested to compound. I have been availing of crypto backed loans to reinvest into the markets and it is a strategy that has worked well for me - kind of.

    Let me explain, I have overleveraged and I am at risk to portions of my portfolio being liquidated with the vast majority of my holdings tied in as collateral for this loan. I have learned my lesson, trust me. The plot thickens though.

    I know by taking crypto backed loans I avoid tax, as opposed to paying the revenue CGT. Over the past 4 years I have actually minimized trading and realising any gains at all. The crippling reality is that if liquidations occur, I will be liable for CGT for crypto that will be taken from me! I'm fecked lads.

    Quite evidently, tax and accounting does not come to me naturally but I cannot procrastinate any longer. I have registered for Koinly and I'm getting all of the applicable API / CSV together. I also spun the roulette table on uniswap shitcoins. F*****CK MY LIFE.

    wen moon? wen lambo? Please help out a fellow crab in the bucket.



Comments

  • Registered Users Posts: 5 pnp7


    To add fuel to this fire, the interest I'm paid daily is significant. I'm liable for tax on it but I'm not sure if it is CGT or income tax?



  • Registered Users Posts: 55 ✭✭ Username2017


    Ugh I hope someone here can simplify it for you, that’s sounds head wrecking :( not a bad bucket to be in all the same :)



  • Registered Users Posts: 55 ✭✭ ConseyMan


    I believe any losses you incur can be written off against any gains for tax purposes. So if you get liquidated their is a silver lining.



  • Registered Users Posts: 5 pnp7


    Let's say I have been buying a token at the 10-40 cent price range and I start getting liquidated now that it is €1.40 - €1.60 per token. I gather I will be double fcuked. I will lose the crypto positions and also incur tax on the gains?

    Koinly is a complete mess. I'm going to have to ring a few accountants tomorrow.

    Can anybody fathom a guess/estimate on how much these lads will charge? What I can expect?



  • Registered Users Posts: 2,799 ✭✭✭ The Guvnor


    Build up millions and move to Portugal.



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  • Registered Users Posts: 5,138 ✭✭✭ nyarlothothep


    As far as I know, interest is charged as income tax, could be wrong though. By selling to fiat that would incur CGT (totally unfair, I know). Could be wrong though and open to correction. Accountants, yikes, again I may not know but they could charge somewhere between 500-1000 euros to do taxes, that's based on my limited experience. I think you'll somehow weather it through though and come out the other end intact as you're being proactive.



  • Registered Users Posts: 74 ✭✭ borderfox11


    sorry can't be of any help but to suggest trying Koinly, however I see you are already using them. Sucks if you will be liquidated but you can come back stronger


    just wanted to ask about your comment "I know by taking crypto backed loans I avoid tax, as opposed to paying the revenue CGT." what do you mean by this exactly? As I have taken a crypto backed loan myself



  • Registered Users Posts: 2,233 ✭✭✭ massdebater


    They probably mean that instead of selling their assets to pay for living expenses (and creating a taxable event), they take a loan which doesn't get taxed and can be paid back later



  • Registered Users Posts: 3 BigChair


    Hi there, just wondering did you get an accountant to look at this? I'm looking for someone and looking for recommendations.

    Someone that can use and check my koinly and understanding staking is what I'm looking for.



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