Crypto tax situation - Read post 1 for thread banned users

No, you don't deduct the loss on the shares from the CGT owed on the crypto. You deduct the loss on the shares from the gains on the crypto (so 4k gains on crypto minus 1k loss on shares equals 3k net gains), then deduct your small gains exemption (so 3k net gains minus 1.27k equals 1.73k), and then calculate CGT on that (so 1.27k multiplied by 33% equals 0.571k).

And, just to be clear, you don't have any losses on your shares until you have sold or otherwise disposed of then. A decline in the value of shares that you are still holding at the end of the year is not a loss; you can't deduct that in your calculation.

If someone like myself is just putting €100 per month into some crypto and not really trading but just buying and hodling for some distant future gains in 5-10 years time, do we need to register? In the first year, my total investment will be less than the threshold and obviously no gains realised. However by the ends of year 2 and subsequently, I could in theory liquidate assets that exceed the threshold. When do I need to register for CGT? If I never liquidate an asset, I won't have any liability. It's all very confusing.

Does anyone know if there is an obligation to tell Revenue when you buy crypto? Got conflicting advice on this recently.

No not when you buy.

If you have a Celsius account, they offer 1% loans using your BTC providing your ltv is max 25%. It's not available in every country though so you might have to check if you can get it in Ireland.

If you log in to the app, when you press the big "C" button, one of the options will be "borrow" if it's available in your country. If it's not there it may not be available.

LTV is loan-to-value ratio so 25% would mean if you wanted a loan of 6k, you would need minimum 24k worth of BTC. You can get loans for higher LTVs but think they charge a higher loan percentage.

It depends on your circumstances.

If you are one of the groups required to register for income tax self-assessment - self-employed; only or main sourse of income is rent, investment income, foreign income, maintenance, or other income not subject to PAYE; someone who benefit from share incentives or similar arrangements - then you are required to complete and file Form 11, and there's a section on Form 11 which you have to detail chargeable assets acquired during the years. So you'd have to list any crypto acquired.

But if you are not required to file Form 11 - and PAYE workers with no other signficant income are not - then, no, you don't have to file details of asset acquisitions. But you still need to keep a good record of the acquisition, because when you dispose of the asset you do have to file, and you'll need details of the acquisition then to calculate your chargeable gain.

Also if the amount in question is less than the exemption of 1270 do you still need to file/report it?

Thanks for your reply. this part confuses me, and apologies in advance because im a tax idiot.

"Your payment for CGT is due before you file your return. For example, if you dispose of an asset between 1 January and 30 November, payment is due by 15 December. Your return will be due by 31 October of the next year."

So you pay it in one year but file a return the following year? what is the return in that case if not the payment of whats owed? i really dont understand this stuff!

thats brilliant, thanks so much

If you cash it all out then you need to deduct the amount you paid for it, and any transaction fees you also paid, to get the profit. Then deduct you tax free allowance, which is €1,270, and then get 33% of whatever is left. That 33% is what you need to pay revenue. Be aware that if you cash out now you have to pay revenue by December 15th this year. If you cash out next year (before October) you need to pay the 33% by October 31st.

I'm not sure how it works in terms of how they verify that you're telling the truth or not though. I suppose you would need to have some kind of receipt or bank transaction in case you get audited. Do you have an email or something from when you bought it, confirming how much you paid and any transaction fees you may have also paid?

A correction to my post here: https://www.boards.ie/discussion/comment/118154580/#Comment_118154580

Sorry, I meant to say 7+ years, not 'over 10 years ago'.

Hi Jafin.

So I guess I should wait until 1-Jan-2022 to do any cash-outs?

I'd have to do some digging to get proof of what I paid for the BTC back then (I think I paid the sellers through SEPA) -- it's a pittance compared to their value now. I wonder if having to calculate how much to get taxed on - maybe it'd be easier to get taxed on the whole lot? I have no emails from that long ago.

Move to another EU country perhaps? That would be one hell of an inconvenience -- although Portugal sounds nice. :)

I see where you're coming from alright. Alas, I'm too much of a homebird.