Capital Gains tax-Crypto?

KevMayo88 wrote: »

This is one I'm vague on guys, so appreciate the help. Lets say you buy Bitcoin and intend to sit on it for a few years as an investment. Would you have to tell revenue this on your 2021 returns, even if its an investment you plan to hold in your online wallet?

You haven't gained anything (in fiat terms) until the moment you cash it out, so no.

Refractions wrote: »

You haven't gained anything (in fiat terms) until the moment you cash it out, so no.

Some Countries want you to declare transfers between cryptocurrenies too. Is this the case with ireland?

KevMayo88 wrote: »

This is one I'm vague on guys, so appreciate the help. Lets say you buy Bitcoin and intend to sit on it for a few years as an investment. Would you have to tell revenue this on your 2021 returns, even if its an investment you plan to hold in your online wallet?

If you hold then no you don't

bingobars wrote: »

Anyone have any idea of revenues stance on…

Forking
Airdrops
Yield farming
Liquidity pooling
Staking
NFT profits

All are income earned except forks and airdrops, you have to claim them for them to be considered as income.

NFT profits could be CGT if you're buying and selling later rather than investing in the production of one and then selling it immediately at release/auction time.

mossy95 wrote: »

How the heck would they find out about it though

If your money is poured into a KYC-friendly exchange (most of the good ones) and flowing out, your transactions are noted. Blockchain is designed for this and there are a few companies already set up to note which wallets you interact with and which wallets they interact with. It's a dream for data analysis.

grindle wrote: »

e.g.
You buy a sh!tload of Sh!tCoinX through ReputableExchange.com, you move your coins to Uniswap - they can see what you're doing and there's already a large industry built around this now.

They can barely use emails, still in fax age, you think they have the ability to go through 1000's of transactions from defi to cen exchanges for 1 user?
I work in a government department, they are not even remotely capable of doing what you suggest here
I still declare myself but unless you are pumping 1000's into your bank account you are not on their radar

KilOit wrote: »

They can barely use emails, still in fax age, you think they have the ability to go through 1000's of transactions from defi to cen exchanges for 1 user?
I work in a government department, they are not even remotely capable of doing what you suggest here
I still declare myself but unless you are pumping 1000's into your bank account you are not on their radar

They don't need fancy tech. In the not so distant future, as regulation starts to catch up, they'll be able to request information from the various KYC exchanges or, possibly, those exchanges will be obliged to file certain returns/reports when certain conditions are triggered by an account holder e.g. cashing/transferring large crypto balances.

KilOit wrote: »

They can barely use emails, still in fax age, you think they have the ability to go through 1000's of transactions from defi to cen exchanges for 1 user?
I work in a government department, they are not even remotely capable of doing what you suggest here
I still declare myself but unless you are pumping 1000's into your bank account you are not on their radar

Not being smart but Are you just on here looking for confirmation to not declare income subject to capital gains
or (income tax etc )and look for excuses (not reasons) as to why ?

In all honesty, nobody on here is going to advocate to do that

There is tax rules and laws in place and we are to abide by them.

You and God knows how many people have been down this path before.

Dont declare it if you don't want to but getting into the situation or area of ' they are backwards, or how would they know or whatever else excuse is pointless

Go open an account in Panama and join mossack Fonseca if they are still about

KilOit wrote: »

They can barely use emails, still in fax age, you think they have the ability to go through 1000's of transactions from defi to cen exchanges for 1 user?
I work in a government department, they are not even remotely capable of doing what you suggest here
I still declare myself but unless you are pumping 1000's into your bank account you are not on their radar

Faxes to Revenue? You mean the same crowd who communicate via secure online messaging, exchange XML data files with other tax authorities and have financial institutions upload data on payments made to customers?

Lorne Malvo wrote: »

Guys; Would you need to declare CGT if you transfer to a stable coin whilst resident in Ireland?

Also, If you leave Ireland for Portugal and set up residence there, and apply for split year relief whilst in Ireland, would you be exempt from CGT to revenue in Ireland if you make any trade to your crypto in Portugal?

the answer to the first question is the same as last week, if you make a gain on the transaction you owe capital gains tax on the gain.

others here will have more knowledge on the 2nd question.

McGaggs wrote: »

Faxes to Revenue? You mean the same crowd who communicate via secure online messaging, exchange XML data files with other tax authorities and have financial institutions upload data on payments made to customers?

Any info on this? Curious what it means, thanks

HGVRHKYY wrote: »

Only after you've been nonresident and non domiciled in Ireland for >3 years, so technically you'd need to be living in Portugal for 4 years, on the 4th year then you can trade without worrying about our CGT

What about 'split year relief'

HGVRHKYY wrote: »

Any info on this? Curious what it means, thanks

https://www.revenue.ie/en/companies-and-charities/international-tax/aeoi/index.aspx

Lorne Malvo wrote: »

What about 'split year relief'

Not too sure on that, you'd be better off having a word with a good tax advisor that knows about the specifics, plenty on here would love to hear the details as well I'd say, and fair play to anyone who successfully manages it!

relax carry on wrote: »

https://www.revenue.ie/en/companies-and-charities/international-tax/aeoi/index.aspx

Thanks for that! That ties in with the importance of sticking to the rules 100% for anyone who'd be relocating to other EU countries so

Lorne Malvo wrote: »

What about 'split year relief'

How would split year relief make any difference if you're ordinarily resident here in Ireland?