Crypto tax situation - Read post 1 for thread banned users

Any recommendations for lending platforms?

Many thanks

Getting a loan, using your crypto as collateral.

For defi loans, I've used Aave on Polygon. For cefi, I use Nexo. Not sure if these are the best options around, but they're the ones I've used. Nexo have 0% loans if you have a low enough LTV and enough of their own tokens. Could be a good option if you intend to pay back the loan soonish.

Different countries might have different options depending on what's available there, I know Celsius do 1% loans but they're not available to me anymore in Canada.

Outside of crypto, I borrow against my regular stocks with Interactive Brokers but that's a slower solution if you don't already have your shares there.

Items 3, 4 and 5 are all disposals for CGT purposes. The base cost is the value of the coin in EUR on acquisition date and the proceeds are the market value of the coin received. CGT is assessed on a calendar year basis and losses can be set off against current year gains or carried forward but they cannot be carried back. I.e. if transaction 3 resulted in a gain in 2021 it was taxable then. If transaction 4 gave rise to a loss in 2022 then it can be set against gains in 2022 (e.g. on transaction 5) or carried forward. Any tax arising ont he gain at 3 (if it was in 2021) would have to be settled in cash even if you have never converted the coin to actual currency.

Remember too that multiple trades per year can attract full income tax rates and not CGT...Revenue may consider you a trader.

@MakersMark I would be interested to see how many trades they would consider actually trading

For example buying a handful of coins and flipping them should be ok as they can be viewed as individual investments but repeatedly buying selling eg Btc (on a daily to weekly, maybe monthly basis?) may be a different story

Their literature would support the idea of it being an investment so long as it isn’t your primary income but that’s not an official opinion

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-02/02-02-06.pdf

I wonder if you can offset the interest paid?

Hey, are you still looking to sell the bitcoin? I will buy at a good rate

Is there any information anywhere on how many trades might label you as a stock/crypto trader? I couldn't find the answer anywhere

Thanks for that!

Was it cfds? If its cfds, then you have to negate the interest on funding to arrive at your Cgt figure. Normal stocks, sure, as long as you filed the loss in prior year(s)

Hey

I have a good bit invested in crypto and I want to start buying and storing on a cold wallet for my 4 Yr old until she is older. I would be buying crypto with my exchange account and storing it on ledger. When I hand her the seed phrase in the future and she wants to sell, how does the tax work as I bought it and she will be selling it? Don't want it to affect inheritance, has anyone done this and know the answer. Thanks. Ps Also have post office account for her for the crypto haters 😜

Will enjoy replying to you in a few years when BTC and ETH have exploded in value again.

As for the tax implications they can move jurisdiction when they are older if they want.

Take out crypto loan against the asset rather than disposal or transfer no tax implications on the fiat you get out of that.

I don't see how this is going to work. If OP takes out a loan and gifts the loan proceeds to his daughter, OP still has to repay the loan at some point. And to do that he will have to dispose of his crypto, thereby generating a charge to CGT (unless the crypto has not appreciated, of course). So all this does is to defer the OP's tax liability, not avoid it. Which means the only loan he can afford to take out is one which he can repay from his crypto proceeds after paying CGT — e.g. if he holds 100k of crypto of which 90k represents accrued gains, on which there is a tax liability of (say) $24k, then the most he can borrow and give to his daughter is (100k - 24k =) 76k.

I'm not seeing how this gives a better result.