Would a cryptocurrency lottery win be taxable?

BrokenArrows

I won a bit of crypto in a lottery. Enter with some Eth and the draw selected a winner.

Not a huge amount but it got me thinking if it needs to be included in my tax return since gambling isn't taxable.

Just don't know if they consider crypto gambling the same as fiat gambling.

seamus

No reason why it wouldn't be treated as normal gambling. There's no obligation for the activity to have been legally licenced in Ireland or anything like that.

The main difference is that crypto isn't legally recognised as a currency, so for tax purposes they would likely be treated as a commodity. The same as if you won a house in a lottery.

If you hold onto the crypto, then you would be liable to pay capital gains tax on any increase in value between the date you won it and the date you sold it. But if you sell it straight away for real money, it is not taxable.

James2020App

https://www.boards.ie/discussion/2058231326/would-a-cryptocurrency-lottery-win-be-taxable

Depends on the amount, how much was it in euro terms?

BrokenArrows

https://www.boards.ie/discussion/comment/118581333#Comment_118581333

Its just a few hundred.

The size of a win is irrelevant when it comes to tax law.

James2020App

https://www.boards.ie/discussion/comment/118582327#Comment_118582327

Indeed it is, however there is an annual CGT exemption of €1,270 which will kick in whenever you sell the asset. You would put proceeds in at market value at date of sale and cost in as zero. That would be my take on it anyway.