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2017 Tax seems impossible - advice please.

  • 28-03-2021 5:58pm
    #1
    person9707
    Registered Users Posts: 3 ✭


    Hi there,

    I got into crypto early 2017, before Revenue released any guidance on tax and crypto. I'd ultimately like to get straight with Revenue, and I've tried my best using Koinly to aggregate all the exchanges and wallets I've used during and since 2017.

    Two major problems
    1. An exchange that I used to purchase 2k worth of Nano (which was then called RaiBlocks) was hacked, and I lost all the coins being held on that exchange 2k worth. There is of course media all over the internet about this hack, however, I've no idea how I proof this to Revenue, regarding transactions and Raiblock addresses (do they even still exist) etc. So that's 2k I lost.

    2. I've forgotten the password for the wallet BTC and LTC (electrum) wallets that I used to make some early transactions to other wallets, and exchanges to purchase other alt coins.

    At the end of the day, I'm only breaking even on what I put in initially (3.7k) now due to bad investment moves, and what koinly is spitting out is that I'm in the red for 2017, and 2021, wavering between plus and minus a few 100 quid, depending on the market.

    Kraken was the only exchange which I credited to with my bank account, so at least there is an 'Input' side to the whole fiasco.

    But I just don't see a way forward regarding this, like I said, I'd like to get in the clear with Revenue, and use Koinly moving forward each year for future crypto investments. But how do I clear this up. I essentially started with something like .6 BTC, and managed to loose it, all the way down to roughly 0.7 From 3.7k initial investment to 3.782.99 as of todays BTC price

    So I don't want to end up in a situation, where I owe Revenue something that I don't actually owe them, but I do want to be able to declare my future crypto via koinly.

    Any advice would be welcome. Would Revenue accept my Koinly tax report as is? How do they even deal with a report like this? Is it matter of them perhaps simply saying, this doesn't look right, we're auditing you, and if you can't proof it we demand x amount of money - or what?


Comments

  • #2
    timeToLive
    Registered Users Posts: 283 ✭✭timeToLive


    person9707 wrote: »
    Hi there,

    I got into crypto early 2017, before Revenue released any guidance on tax and crypto. I'd ultimately like to get straight with Revenue, and I've tried my best using Koinly to aggregate all the exchanges and wallets I've used during and since 2017.

    Two major problems
    1. An exchange that I used to purchase 2k worth of Nano (which was then called RaiBlocks) was hacked, and I lost all the coins being held on that exchange 2k worth. There is of course media all over the internet about this hack, however, I've no idea how I proof this to Revenue, regarding transactions and Raiblock addresses (do they even still exist) etc. So that's 2k I lost.

    2. I've forgotten the password for the wallet BTC and LTC (electrum) wallets that I used to make some early transactions to other wallets, and exchanges to purchase other alt coins.

    At the end of the day, I'm only breaking even on what I put in initially (3.7k) now due to bad investment moves, and what koinly is spitting out is that I'm in the red for 2017, and 2021, wavering between plus and minus a few 100 quid, depending on the market.

    Kraken was the only exchange which I credited to with my bank account, so at least there is an 'Input' side to the whole fiasco.

    But I just don't see a way forward regarding this, like I said, I'd like to get in the clear with Revenue, and use Koinly moving forward each year for future crypto investments. But how do I clear this up. I essentially started with something like .6 BTC, and managed to loose it, all the way down to roughly 0.7 From 3.7k initial investment to 3.782.99 as of todays BTC price

    So I don't want to end up in a situation, where I owe Revenue something that I don't actually owe them, but I do want to be able to declare my future crypto via koinly.

    Any advice would be welcome. Would Revenue accept my Koinly tax report as is? How do they even deal with a report like this? Is it matter of them perhaps simply saying, this doesn't look right, we're auditing you, and if you can't proof it we demand x amount of money - or what?


    It might be a good idea to spend money on professional help in this area. It will give you peace of mind that it's sorted correctly


  • #3
    person9707
    Registered Users Posts: 3 ✭person9707


    Which professionals are these out of curiosity? Crypto accountants of some sort? (I know I sound like I'm being sarcastic, but I'm actually not). Thanks for the advice.


  • #4
    person9707
    Registered Users Posts: 3 ✭person9707


    Actually seems koinly have a few listed here:
    koinly.io/crypto-accountants/
    Though I wonder how up on it they really are.


  • #5
    timeToLive
    Registered Users Posts: 283 ✭✭timeToLive


    person9707 wrote: »
    Actually seems koinly have a few listed here:
    koinly.io/crypto-accountants/
    Though I wonder how up on it they really are.


    I've no idea and to be honest when I contacted some they never got back to me.


    The thing to keep in mind is that there are no special tax laws* around crypto.. just normal capital gains tax



    * I think, not a tax accountant..


  • #6
    ScamAtak
    Registered Users Posts: 16 ✭ScamAtak


    Crypto currencies and coins have no value at all. Waste of time


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  • #7
    HGVRHKYY
    Registered Users Posts: 402 ✭✭HGVRHKYY


    ScamAtak wrote: »
    Crypto currencies and coins have no value at all. Waste of time

    Some people on here have daily fluctuations in their portfolios larger than your annual salary, have fun staying poor


  • #8
    0ph0rce0
    Registered Users Posts: 3,916 ✭✭✭0ph0rce0


    ScamAtak wrote: »
    Crypto currencies and coins have no value at all. Waste of time

    Pulled out a lovely 6 figure sum just weeks ago from a small 4 figure investment, so I beg to differ sir.


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