Crypto tax situation - Read post 1 for thread banned users

Has anyone here payed CGT for sale of NFT's, I have some questions, thanks.

Yes. Assuming that you've sold at a profit, you've realised a gain regardless of where it is. CGT can be due on the sale, gift or exchange of an asset.

Yes. Ireland's tax regime is vicious. It appears to be designed to intentionally discourage people from investing, or if they do, limit as much as possible any benefit they might get from doing so, while bending over backwards for corporate entitties like REITs. In other countries they let people have investment accounts where you only pay CGT on money coming out of the account, ring fencing transactions that happen between the account and investments. But thats other countries.

Don't forget you have a miserly CGT relief of the first €1,270 of profit being exempt CGT.

I have plans the emigrate to New Zealand. Currently no CGT, no death duties, no VRT, no DIRT, GST(VAT) of 15%, no CGT on imputed sale of ETFs you haven't sold, petrol is 10c cheaper and the weather and healthcare are a lot better. Houses are mind bendingly expensive and of poor quality, but there's always something.

Found this brilliant YouTube channel by two Irish lads who explain in detail how to file CGT and income taxes for crypto and everything else:

So they'd take 33% CGT and also get you for income tax? What a hammering.

"For some who are trading in huge volumes, they would possibly fall under the income tax regime not CGT."

What would be consider 'huge'?

Volume of transactions is just one factor. Essentially, if you're carrying on a trade, you pay income tax on the profits of the trade, even if the trade is dealing in securities or other assets. But if you;re making investments, the gains from your investments are not the profits of a trade and are not subject to income tax. Until some time in the mid-1970s they were wholly tax-free, but it became politically embarrassing that some people were making obscene amounts of money from property speculation and paying no tax, so CGT was introduced.

So, if you make money by buying and selling assets, which tax you pay depends on whether your activity of buying and selling assets amounts to a trade or business (income tax) or doesn't (capital gains tax). In most cases the answer is perfectly clear - when you buy a picture from an art dealer you're making an investment, but he's carrying on a trade - but there are always going to be borderline cases. They are decided by looking at a range of factors - the nature of the activity the taxpayer is engaging in; how much time the taxpayer spends on it; whether he holds assets long-term or trades them actively; how frequently he engages in the activity; whether he does ancillary work to make the activity more profitable (e.g. if you buy, restore or enhance, and then sell assets that's more likely to be trading than if you simply bought and sold them in the same condition); his motive for the transaction (e.g. is he buying artwork to hang on the wall, or simply because he expects it to appreciate in value?); etc, etc. A holistic view of all the circumstances has to be taken, and circumstances are different in every case, so there is no simple universal rule that can be laid down as to when activity will be trading, and when investment.

It's worth pointing out that when there's a row between a taxpayer and the Revenue over this, nine times out of ten the taxpayer is claiming that his activity is a trade, and the Revenue is denying this. The reason is that the taxpayer has suffered substantial losses in his activity, and he wants to set them off against income from his day job so as to reduce his income tax bill; he can only do this if his activity is a trade.

Ask an accountant.

Hi all

After years of hodling, I need to cash out a portion of my crypto

I admit I haven't had time to read this thread in full. What confuses me is assessing the base cost of the crypto, does revenue allow for 'average cost'? If not it will be rather laborious to work out

Thanks in advance

Omt

Yeah they do it first in, first out.

You could always just borrow against your crypto if you don't want to have to deal with tax on it though.