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Capital Gains Tax - Crypto

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  • 17-10-2018 7:03pm
    #1
    wally1990
    Registered Users Posts: 1,222 ✭✭✭


    Just looking for advice on how others declared their investment gains/losses.

    I'm not here to talk about those who didn't but rather those who did what method did you use

    I'm basically thinking money out in euro less money in and declaring the gain/loss

    My accountant was mentioning every time I made a trade but there is hundreds of trades between different assets (ltc to neo to btc to ETH) and so on and FIFO (first in first out) but Christ I've no way/understanding to do that

    I wouldn't have a notion what each was worth in euro either as its depreciating/appreciating so much so to pinpoint each trade is crazy

    Any advice on how you approached your declaration?


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    #2
    grindle
    Registered Users Posts: 6,026 ✭✭✭grindle


    wally1990 wrote: »
    Just looking for advice on how others declared their investment gains/losses.
    ...

    Any advice on how you approached your declaration?

    https://cointracking.info/

    You're gonna have to d/l the CSV file for each exchange you've used, plug it in there and it'll give you an approximation which the taxman would likely accept because they really don't want to be drilling down through hundreds of shítcoin trades. They definitely have better things to be doing.
    Fingers crossed for you that you weren't making a shítload of gambles in the latter half of 2017 without declaring.

    If you got in this year - great year for tax harvesting, reducing tax owed while increasing amount of assets.
    I've had coins more than quintuple some of my ETH while ETH went down seven-fold in USD or EUR. Literally cannot believe my luck. Take advantage of such opportunities.

    Note to anybody buying at this stage - if any asset you own goes much lower than your buy-in and you can solidify that fiat loss (if liquidity and spread isn't terrible) without losing too much of the crypto - do it. You'll be able to write it off against any fiat gains for the year.


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    #3
    wally1990
    Registered Users Posts: 1,222 ✭✭✭wally1990


    So would the approach be

    1- deposited EURO
    2- bought BTC
    3- buy neo(just an example) with some BTC

    Q1: Should i Convert the % of BTC used to EURO and establish if a gain or loss was made on what BTC was worth from when I bought it to selling it for NEO and deduct fees

    And do that for each trade?

    ( I'm not being smart/sarcastic I actually dont know just incase its reads like that)

    Q2: is it not just when the cryto is sold back to Euro? .

    Q3: is the approach on the buying/selling from crypto to crypto considered a possible gain/loss to be reported

    Q4:: all losses can be offset against gains for the year being reported?


    The WTF Q:: What the hell should companies trading in this do?!? :)

    Head is melted but I want to do it right

    Amounts aren't huge about 10k euro gain but many many trades between crypto coins


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    #4
    grindle
    Registered Users Posts: 6,026 ✭✭✭grindle


    wally1990 wrote: »
    Q1: Should i Convert the % of BTC used to EURO and establish if a gain or loss was made on what BTC was worth from when I bought it to selling it for NEO and deduct fees

    And do that for each trade?

    ( I'm not being smart/sarcastic I actually dont know just incase its reads like that)
    Sarcasm not detected, answer is yes. Untouched BTC doesn't get counted, traded BTC does.
    wally1990 wrote: »
    Q2: is it not just when the cryto is sold back to Euro?
    I wish. We all wish. Crypto-to-crypto should be how it is because until you truly cash-out, it's all just crypto-shítcoin trading and gambling. The government is trying to maximise it's own gains in order to offset their own bad bets (Oh, hey Senor Quango!) - they're not designing a machine who's end-game is to be nice. They're designing a machine which gets them re-elected and gives most favourable terms to most friends.
    wally1990 wrote: »
    Q3: is the approach on the buying/selling from crypto to crypto considered a possible gain/loss to be reported
    Yes. The minute you sell one for another, note the fiat amounts and loss or gain made.
    wally1990 wrote: »
    Q4:: all losses can be offset against gains for the year being reported?
    For the period being reported,yep. As you're trading you can use losses against gains, so make sure to count them and solidify them before the December and January cut-off dates.
    Probably doesn't make sense to a normal stock trader where prices vary little (the poor HIVE blockchain team, they're getting the picture of crypto bear markets now) but if it swings wildly downwards, you sell & buy back within minutes - you get to report a fiat loss & you can erase your tax bill or close to it.
    wally1990 wrote: »
    The WTF Q:: What the hell should companies trading in this do?!? :)
    Companies trading in this will be hooked into exchange's APIs. At some point in the future (probably happening somewhere that isn't Ireland tbf) I reckon it'll be a given that some company somewhere is being paid to provide these outputs to accountants.
    But how do we blockchainify it?


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    #5
    ZeroThreat
    Registered Users Posts: 2,181 ✭✭✭ZeroThreat


    Anyone know if gains from using bitmex comes under CGT, or are short/long postions using leverage covered under a different tax?


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