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Crypto tax situation - Read post 1 for thread banned users

Gooey Looey

What is the tax situation?
I've started adding loose change towards crypto and have at times made some nice little earners along with building up some savings. I know I'm supposedly liable for capital gains tax if I turn a decent profit but I'll be leaving it as crypto, not looking to convert back into Fiat at this time.

Threadbanned users:
Hellotonever

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Hellotonever

Seve OB wrote: »

Thing is, I don’t believe you because I don’t believe you understand the tax laws.

Nah I do. The midwits in this thread are too stupid to understand I started a conversation specifically to discuss tax laws.

I'm actually not surprised you people can't make money from cryptocurrency with your level of intelligence.

Seve OB

Hellotonever wrote: »

The only taxable events I've made only added up to tens of thousands, which I did pay for.

Now im legally trading with minimal tax in southern europe.

Thing is, I don’t believe you because I don’t believe you understand the tax laws.

Hellotonever

Seve OB wrote: »

But did you pay your taxes though.

And all of them, with no evasion?

The only taxable events I've made only added up to tens of thousands, which I did pay for.

Now im legally trading with minimal tax in southern europe.

Seve OB

Hellotonever wrote: »

Man I am cringing so much... Imagine doing all this. I pity you bro. Cannot imagine someone doing all this who actually values their time lol

Btw. As stated im writing fiction for the purposes of discussing tax laws. But one thing that isnt a lie is that I am indeed retired at 25 and a millionaire. Which is more than anyone here will ever achieve through crypto

But did you pay your taxes though.

And all of them, with no evasion?

Hellotonever

Mellor wrote: »

Ok so, if that's what you're after.
Let's start with the claims you made;

Made 7 figures up to last November.
Moved to Portugal.
Recent run took you to 8 figure.
Daily traded in alts, not Bitcoin, only on unregulated non-KYC exchanges.
Never touched fiat. It's all clean, etc.
Didn't pay CGT, didn't file a return etc.

That's the gist of it. From here. Right.

And you've stuck to that story...oh wait.

So at the start you said you cashed out to fiat, paid tax and moved to portugal. But now it was never in fiat, and no tax was paid. Finding it hard to believe you forgot about paying 33% CGT that you mentioned.

And, never touched fiat. But you also claimed to be taking an income for 700k. That's a lot of fiat.

And it was all non-KYC, unregulated exchances. Of course, except for this time Coinbase locked your account. Coinbase is a KYC exchange. (Bit of a novice thread from a 7 figure trader).

8 figures would have required at least a 6 figure investment. $100k plus is a big ask. Not bad for the rich. But you came from a poor family right?

But..wait. Your post history screws you up again.

Came from millionaires that time. No mention of crypto. In Dublin not Portugal. Income was $120k (not 700k :pac: ).
Looks like you tell this lie often, maybe right it down as you can't get the details consistent.
I'm sure there is more. You post history is basically a string of claims to be groomed for trading and retired millionaire. But the story keeps changing. The whole think smacks of Walter Mitty and jealously.

Man I am cringing so much... Imagine doing all this. I pity you bro. Cannot imagine someone doing all this who actually values their time lol

Btw. As stated im writing fiction for the purposes of discussing tax laws. But one thing that isnt a lie is that I am indeed retired at 25 and a millionaire. Which is more than anyone here will ever achieve through crypto

Hellotonever

I dont get this guy. I literally said Im writing fiction. Then he claims Im making it up after I said it. Then he says he can prove im making it up AFTER I SAID IM MAKING IT UP.

Then he spends a good amount of time (15-20 mins?) copy pasting and writing the next American novel proving that Im writing fiction.... 10 times after I said im writing fiction.

So is this guy just a mentally challenged midwit with something to prove or something more disturbing?

[Deleted User]

Well played Mellor.

Myth busted

olestoepoke

Like my dear old mam used to say when we were kids 'A liar needs a good memory'

Mellor

Seve OB wrote: »

But once the trade is done, the tax liability is due and it seems like an awful lot of people do not realise that.

Doesn't help that one of the first post in the thread mistakenly believes that it's only due to when it's cashed in for fiat. I think that post has given some lads notions.

Deleted User wrote: »

https://www.ato.gov.au/general/capital-gains-tax/international-issues/changing-residency/
Maybe we should tax gains on changing residence too, like the Australians seem to do.
(At up to 47%)

Seams like a much more logical way to do it, from the governments POV. Stop people leaving to cash out. But it's also much easier to cease tax residency in Australia.
Australia also have a $10k personal limit, although the rate is higher after that. Typically 37% or 45%

Mellor

Hellotonever wrote: »

OK prove it.

Ok so, if that's what you're after.
Let's start with the claims you made;

Made 7 figures up to last November.
Moved to Portugal.
Recent run took you to 8 figure.
Daily traded in alts, not Bitcoin, only on unregulated non-KYC exchanges.
Never touched fiat. It's all clean, etc.
Didn't pay CGT, didn't file a return etc.

That's the gist of it. From here. Right.

Hellotonever wrote:

I never touched fiat at all

Hellotonever wrote:

Look pal, the short of it is, im a millionaire and paid no taxes to FG. Once you accept that what I did is for the betterment of humanity, you’ll be out of the crab bucket.

And you've stuck to that story...oh wait.

I cashed out enough to move out to Portugal. Actually had to cash out more than that because 33% is the CGT rate.

So at the start you said you cashed out to fiat, paid tax and moved to portugal. But now it was never in fiat, and no tax was paid. Finding it hard to believe you forgot about paying 33% CGT that you mentioned.

And, never touched fiat. But you also claimed to be taking an income for 700k. That's a lot of fiat.

And it was all non-KYC, unregulated exchances. Of course, except for this time Coinbase locked your account. Coinbase is a KYC exchange. (Bit of a novice thread from a 7 figure trader).

8 figures would have required at least a 6 figure investment. $100k plus is a big ask. Not bad for the rich. But you came from a poor family right?

Some people fall for it, the same way some people fall for pyramid schemes, but coming from a poor family and seeing what a scam does to a household, none of the shilling worked on me.

But..wait. Your post history screws you up again.

Genuine question. I come from a family of businessmen, gamblers and millionaires. My branch of the family decided to settle in a modest south Dublin suburb... by the time I was an adult it was easy for me to quadruple the fund given to me by my parents.

...I'm living off passive income (about 120k a year after taxes) and retired at 25.

Came from millionaires that time. No mention of crypto. In Dublin not Portugal. Income was $120k (not 700k :pac: ).
Looks like you tell this lie often, maybe right it down as you can't get the details consistent.
I'm sure there is more. You post history is basically a string of claims to be groomed for trading and retired millionaire. But the story keeps changing. The whole think smacks of Walter Mitty and jealously.

Bob24

relax carry on wrote: »

That's a good and relevant question after all the silliness of the last few pages. How is the interest paid? Is it paid in the crypto you hold? Is it an annual figure?

I think most deposit services are paying interest on a weekly or monthly basis (it is the case for the ones I listed anyway).

Some are paying in the same crypto you are depositing (i.e. deposit BTC and get interests paid in BTC). And other offer to pay in a different crypto (for exemple Celsius have higher rates if you get paid in their own token and HODL - i.e. deposit BTC and get paid interests in CEL). I don't think they ever pay in fiat currency if that was the question.

To make an analogy it is the bit the same situation as if you were depositing gold bars with someone and for whatever reason each month they were giving you a gold coin as interest (of couse it wouldn't make the same business sense is it does with crypto, but from a tax perspective I think it would be the same thing). I am not sure how you would get taxed in that situation?

Seve OB

conor-w wrote: »

Isn't each trade that produces profit a taxable event? i.e. this story of 8 figures already involves copious amounts of tax evasion from the very start. I don't see how just moving to another country solves the issue, unless tax was paid on everything up until the point of moving.

This is one of the more sensible posts on this thread.
People don’t actually understand when the profit is triggered.

I hate taxes and agree with hell that the rates and structure in Ireland is all wrong and totally unfair. If I had 10m I’d probably leave to. Well I wouldn’t leave I’d probably engage in some tax avoidance measures which for the uninitiated is not the same as tax evasion. Even though I’m no fan, I always pay my dues.

As for hell, fiction or not, as already said unless he is a computer whiz kid bouncing his IP address all over Russia, he might find himself open to audit sooner rather than later.

If he has really turned profits, fair play to him. If he has legally avoided paying tax, even more power to him.

But he has claimed he cashed out at least a million and paid his dues on that so he could move to Portugal and then later said he has never made a tax return so if off the radar!!!!!

And as for the rest of his 10m +, I seriously doubt that they are still in his initial investment and not cashed out in some way shape or form. Maybe not to his bank account. But once the trade is done, the tax liability is due and it seems like an awful lot of people do not realise that.

relax carry on

Bob24 wrote: »

Trying to move on from the past few pages, has anyone seen guidance on how interests paid on cryptocurrency deposits are mean to be taxed? (interests on deposits with the likes of BlockFi, Celsius, Crypto.com, etc)

I was having a look at Revenue’s crypto handbook here and this is not covered - and I couldn’t find any other source: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-02/02-01-03.pdf

On the one hand I’d be tempted to say DIRT should apply. But on the other hand, crypto currencies are not legally currencies (they are rather financial assets) and are not held as bank deposits. And I think the scope of DIRT is limited to interests paid on bank cash deposits.

That's a good and relevant question after all the silliness of the last few pages. How is the interest paid? Is it paid Inthe crypto you hold? Is it an annual figure?

Hellotonever

Mellor wrote: »

No you're not though.

The real short of it is, you made the whole thing up. I can prove that.
I'm not sure what motivated you to do it. But must be unhappy about your reality.

OK prove it.

Bob24

Trying to move on from the past few pages, has anyone seen guidance on how interests paid on cryptocurrency deposits are mean to be taxed? (interests on deposits with the likes of BlockFi, Celsius, Crypto.com, etc)

I was having a look at Revenue’s crypto handbook here and this is not covered - and I couldn’t find any other source: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-02/02-01-03.pdf

On the one hand I’d be tempted to say DIRT should apply. But on the other hand, crypto currencies are not legally currencies (they are rather financial assets) and are not held as bank deposits. And I think the scope of DIRT is limited to interests paid on bank cash deposits.

chalky_ie

olestoepoke wrote: »

Yes you could, great point. I was talking about Bitcoin and the like.

Changing from one crypto to another is a taxable event, so you would owe tax on profits you've realised from exchanging the volatile crypto to a tethered one.

olestoepoke

Hellotonever wrote: »

Look pal, the short of it is, im a millionaire and paid no taxes to FG. Once you accept that what I did is for the betterment of humanity, you’ll be out of the crab bucket.

I'm still waiting for you to tell me where the misinformation was in my post. I'll take your silence as a sign you knew you were talking nonsense.

[Deleted User]

https://www.ato.gov.au/general/capital-gains-tax/international-issues/changing-residency/
Maybe we should tax gains on changing residence too, like the Australians seem to do.
(At up to 47%)

Mellor

Hellotonever wrote: »

Look pal, the short of it is, im a millionaire and paid no taxes to FG.

No you're not though.

The real short of it is, you made the whole thing up. I can prove that.
I'm not sure what motivated you to do it. But must be unhappy about your reality.

Hellotonever

Mellor wrote: »

We know you are. That was obvious from the start.
When people make up these sort of lies, they then to get mixed up in contradictions pretty quickly.

Look pal, the short of it is, im a millionaire and paid no taxes to FG. Once you accept that what I did is for the betterment of humanity, you’ll be out of the crab bucket.

Mellor

Hellotonever wrote: »

I have stated multiple times that I was writing fiction. Is this guy slow or something?

We know you are. That was obvious from the start.
When people make up these sort of lies, they then to get mixed up in contradictions pretty quickly.

Hellotonever

Mellor wrote: »

This is completely incorrect.
That's why you won't say when you moved to portugal. Because you're not in portugal. You are just making **** up. Fantasy stuff.

I have stated multiple times that I was writing fiction. Is this guy slow or something?

Mellor

Hellotonever wrote: »

Dont spread fear and disinformation. Tax residency in Portugal is 183 consecutive days. Thats half a year. The other half? Doesn't matter where you f*ck off to. You can come back to Ireland if you want, as long as you don't pass any residency tests.

Crabs in a bucket the lot of you. Discouraging people from being smart with their assets.

This is completely incorrect.
That's why you won't say when you moved to portugal. Because you're not in portugal. You are just making **** up. Fantasy stuff.

dougal0691

Irish_rat wrote: »

The fish rod was out for the bait and a pack of posters caught it. Its the biggest load of nonsense I've read.

fiction or not, I think it was an interesting discussion.

olestoepoke

bosco12345 wrote: »

Could you not just convert your crypto to USDT (stable coin), and it will be safe

Yes you could, great point. I was talking about Bitcoin and the like.

Irish_rat

dougal0691 wrote: »

he's made his profits wheeling and dealing on uniswap. he didn't avoid tax he evaded it.

The fish rod was out for the bait and a pack of posters caught it. Its the biggest load of nonsense I've read.

dougal0691

kippy wrote: »

I dont think anyone is "fetishising" about getting taxed or taxing others.
The thread is on the situation on Crypto tax. The situation is fairly straightforward.
If you have left the country to avoid paying the tax - well done you.

he's made his profits wheeling and dealing on uniswap. he didn't avoid tax he evaded it.

dirk_dangler

This thread reeks of revenue honeypot, the posters who are openly planning to avoid paying tax are would want to be using public wifi and bouncing the signal of a dozen satellites.
I can imagine the phone call , “Hello boards, this the tax man, could you send over the ip addressed of these users”.

Does anyone really believe a poster made €10M+ and has nothing better to do but post here, a more believable LARP would have been stories about being a crypto millionaire, living the good life and snorting coke out of models bellybuttons, if he is telling the truth posting here at all hours of the day is better fun, so why even bother trying to make millions if thats the case?

chalky_ie

Hellotonever wrote: »

No idea what you're talking about mate. But this is the perfect example of the crab in the bucket mentality im talking about. Just look at the amount of people here fetishizing about getting taxed or taxing other people. Its surreal.

Mention that you're rich and mention that you'd rather not pay extortionate taxes and you are already compared to a criminal and a thief.

In the eyes of these people, you can't be a smart and pragmatic citizen. You can't possibly look after your own interest. No, you have to pay for the world's most expensive hospital. You have to pay 33% of everything.

I'll tell you what. This is why everyones getting the f*ck outta dodge when it comes to Ireland. Ultimately, whoever stays there is the loser. Money is going out and out to other places, and you're gonna be left to pick up the tab for FF/FG's incompetence.

I'm sure you're posting all this from your ma's box room, so I'm not sure why I'm still engaging with you, but I think you'll find that the majority of people that leave Ireland are doing it because they can't get a job here, not because they earn so much money that they refuse to pay taxes on it. Staying in the country and paying taxes doesn't make you a loser, claiming to be worth 8 figures, yet still being unhappy with the amount of money you have probably does though.

kippy

Hellotonever wrote: »

No idea what you're talking about mate. But this is the perfect example of the crab in the bucket mentality im talking about. Just look at the amount of people here fetishizing about getting taxed or taxing other people. Its surreal.

Mention that you're rich and mention that you'd rather not pay extortionate taxes and you are already compared to a criminal and a thief.

In the eyes of these people, you can't be a smart and pragmatic citizen. You can't possibly look after your own interest. No, you have to pay for the world's most expensive hospital. You have to pay 33% of everything.

I'll tell you what. This is why everyones getting the f*ck outta dodge when it comes to Ireland. Ultimately, whoever stays there is the loser. Money is going out and out to other places, and you're gonna be left to pick up the tab for FF/FG's incompetence.

I dont think anyone is "fetishising" about getting taxed or taxing others.
The thread is on the situation on Crypto tax. The situation is fairly straightforward.
If you have left the country to avoid paying the tax - well done you.