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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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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?

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.

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%

olestoepoke

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

[Deleted User]

Well played Mellor.

Myth busted

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?

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

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

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: »

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: »

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: »

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.

You don’t know the people on this thread so you can’t comment on their levels of intelligence.

Some would probably say the same about you.

If you’ve done it all above board then fair play to you.

But your moaning about the tax laws is silly. The thing is, you now have enough money that you could run for government and have your say in the dail to make the changes

Hellotonever

Seve OB wrote: »

You don’t know the people on this thread so you can’t comment on their levels of intelligence.

Some would probably say the same about you.

If you’ve done it all above board then fair play to you.

But your moaning about the tax laws is silly. The thing is, you now have enough money that you could run for government and have your say in the dail to make the changes

Nah it takes more than money to change anything. Im not someones nephew. I dont have access to cronyist privileges.

Irish_rat

Seve OB wrote: »

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

Why are people obsessed about others not claiming tax

Hellotonever

Irish_rat wrote: »

Why are people obsessed about others not claiming tax

Sadistic fetish.

They themselves pay taxes. They know its sh*t and its a big reason for why their life is sh*t.

But hearing about other people getting whipped makes them feel better.

Mellor

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

Literally took a few mouse clicks. Zero effort for anyone other a midwit.

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

So it was all lies except for the millionaire part. :pac::pac::pac:

kippy

Irish_rat wrote: »

Why are people obsessed about others not claiming tax

Not claiming tax or not paying tax?

I think it's nice that posters are concerned about their fellow posters potential tax liabilities and are trying to warn/keep them out of trouble.

Hellotonever

Mellor wrote: »

Literally took a few mouse clicks. Zero effort for anyone other a midwit.

So it was all lies except for the millionaire part. :pac::pac::pac:

Yes. It is an absolute midwit thing to do. I am actually cringing imagining someone in real life being sad enough to do that.

Mellor

Hellotonever wrote: »

Yes. It is an absolute midwit thing to do. I am actually cringing imagining someone in real life being sad enough to do that.

You understand what "other than" means?

The only thing to be cringing at here is somebody boasting online about a made up fantasy world they live in. That's not normal behaviour dude. Suggest you are really unhappy with something in real life. Are you ok?

relax carry on

Are there any moderators in this forum? The thread could do with a clean up of the Walter Mitty posts.

Hellotonever

So let me get this straight. I started a discussion about crypto taxes, which I stated to be fictional for the purposes of educating people how and what they can do, and some midwit started going through my post history to 'prove' that what I stated to be a fictional story is indeed fictional. And now the other midwits are applauding him because he 'proved' (?) that I was writing a fictional story?

Tell you what lads. There's a reason why midwits are focusing on me and not whats happening. This is what's happening:

https://www.independent.ie/business/finance-minister-donohoe-warns-taxes-will-rise-after-covid-40160291.html

Keep your head down and pay your taxes. Im off to Cabo when lockdown ends.

Mellor

Hellotonever wrote: »

So let me get this straight. I started a discussion about crypto taxes, which I stated to be fictional for the purposes of educating people how and what they can do, and some midwit started going through my post history to 'prove' that what I stated to be a fictional story is indeed fictional.

Nope. you claimed been a millionaire. There was no hypothetical in the original post.
You rolled out the "I'm writing fiction" in an pretend "if revenue ask" context.
But really it was to deflect from your lack of understanding of tax laws.

I mean you literally said;

Hellotonever wrote:

OK prove it.

Which was a very odd challenge to issue if t was openly hypothetical.
The embarrassed backpedaling is glorious.

Hellotonever

Mellor wrote: »

Nope. you claimed been a millionaire. There was no hypothetical in the original post.
You rolled out the "I'm writing fiction" in an pretend "if revenue ask" context.
But really it was to deflect from your lack of understanding of tax laws.

I mean you literally said;

Which was a very odd challenge to issue if t was openly hypothetical.
The embarrassed backpedaling is glorious.

Uh yeah. Cringe conversation. Just pay your taxes and feel good about it.

grindle

relax carry on wrote: »

Are there any moderators in this forum? The thread could do with a clean up of the Walter Mitty posts.

They react to what's reported, so if you haven't they won't react.

barneystinson

The only thing I've learned as a result of this thread is what a midwit is. I thought the Hellotonever was having an autocorrect mare but turns out not.

chalky_ie

I hope Portugal has good mental health services anyway.

Nody

Mod:
We thank Hellotonever for their contributions to this thread and wishes them all the best in their future endeavors.

Hellotonever threadbanned and any further replies to or discussion of their posts to accordingly.

donnaille

I wonder if there is also a way to combine all of the useful tax information that gets shared over and over again into the first post.

New questions on things like staking, NFTs etc. then become the topic of the discussion rather than taxation policies that are well understood by the posters here - who I must add still happily - and helpfully - respond to the same questions over and over again.

kippy

donnaille wrote: »

I wonder if there is also a way to combine all of the useful tax information that gets shared over and over again into the first post.

New questions on things like staking, NFTs etc. then become the topic of the discussion rather than taxation policies that are well understood by the posters here - who I must add still happily - and helpfully - respond to the same questions over and over again.

The thing is, most of the things people ask on here are fairly easily "googleable" already in generally more up to date than having to rely on a somewhat static post (that someone needs to update)
What people need to know is pretty much in here:
https://www.revenue.ie/en/companies-and-charities/financial-services/cryptocurrencies/index.aspx
Any posts really are most likely looking for a clarification of what is there or how best to minimise what they pay - , the answers to which vary depending on some variable.

Some more stuff here:
https://www.mooreireland.ie/MediaLibsAndFiles/media/nathansweb.moorestephens.com/Publications/Tax-Treatment-of-Cryptocurrency-Brochure-Web-Final.pdf
https://irishtechnews.ie/crypto-taxes-in-ireland-how-to-prepare/
Maybe stil that link to these three in the OP?

I am always concerned when I see certain questions being asked in here, when there is a lot of information already around the topic out on the net, information that needs to be understood and particulaily if you are serious (about investing in general, not just crypto)

Rob2D

Let's change the topic a bit for fun.

How would crypto mining be taxed??

Not that anyone would ever declare it anyway since it's impossible to prove almost. But if they did? Was wondering about it the other day.