Hi,
This is a pretty niche question but looking for the opinion of those who are staking with Lido
I was staking with Kraken and received my (locked) Eth2S rewards every Sunday
This is now definitely an income (since Shapella) and so has to be filed as IT atend of year
Staking with Lido gives as 1:1 swap from Eth to stEth which would be liable for CGT (or loss, depending on when you bought that Eth). Now after Shapella the stEth rebase token increases so this is also clearly an IT to be filed
I have heard that if this rebase token stEth is wrapped (so it can be used in defi or L2s) to WstEth, which triggers another CGT liability, then the daily rewards are not liable for IT since WstEth is only a share of a pool. When swapping the WstEth for stEth or just Eth itself that would trigger a sale and thus CGT
If this were true then one could save quite a lot of money potentially
Has anyone talked to an accountant about this? Ireland only obv
Lender wud be the exchange or the network. If a coin is stable no reason LTV is close to Irish CGT. If a person defaults on their mortgage they have no tax liability on the money they borrowed. That's why crypto loans are perfect way to offset CGT . I done it my self 3% Apr crypto loans paid back over 6 months cheaper than banks and my assets had increase after I got the loan repaid.
Yep, trump currency speculation by leveraging it! The objective in investing rather than speculation is to take calculated risks in order to achieve a particular return not take a flyer at it and hope for the best.
Unless the lender is an idiot, or some other security is also offered, the LTV should always reflect a full discount for the CGT liability on disposal of the crypto. If it doesn't, the security offered is inadequate to clear the loan, and why would any lender lend on that basis?
(We also need to consider whether the borrower, when he defaults on the loan and allows the security to be enforced over his crypto, is going to be treated for CGT purposes as disposing of the crypto for the loan proceeds, with a consequential charge to CGT. I leave that question for the honours students.)
Because that LTV is a worse case scenario with an alt coin . I hv seen LTV of 85-90% but only on BTC and some stable coins.
In your example the OP gives 70k to his kid. But if, instead, he sells the crypto, pays the CGT and gives the kid the net proceeds, he's still giving the kid 70k. So how does your suggestion produce a better outcome for anyone?
Op buys token at 1c puts in cold wallet for ten years , token now worth 100000. , Op takes out 70% LTV crypto loan gives his kid the 70k tax free as a gift and op defaults on loan loses the 30k balance. Other option is OP buys kid a cold wallet and downloads the 1c token onto it kid says nothing and in ten years gets the crypto loan himself .
I suppose I could go ahead with and hopefully in years to come and well in the profit, myself and the wife can gift the 3k each a year to our daughter without incurring CAT.
Some people would give their kids the ledger and tell them go have a long break overseas in HK or Portugal when you are older, GO HAVE FUN.
Hmmm.... But you are not investing in the blockchain nor any of the underlying software, all you have is an amount of a given currency nothing else. You argument is not different to claiming that because you have Euros in your pocket you are invested in the ECB, SEPA etc....
But you are right the underlying technology is very useful, which is why since I retired have been working with and investing in a few promising fintechs in this area. So yes I understand the underlying maths and I have written a lot of the code as well.
If you want to speculate in a currency and convince yourself you are actually somehow getting to own slice of the technology when you buy Bitcoin or whatever that is up to you.
Do you understand that Ethereum is more like a distributed financial software platform that is owned by Joe Public and it pays you dividends too?
To call it a currency misleads a lot of people.
Its constantly evolving and growing.
It's basically a decentralised open source financial operating system , the Microsoft Windows of the decentralised finance world.
As they secure the network the owners of ETH get a cut of every single transaction on the network
Who wouldn't want to own some of that ? Especially as its now deflationary.
Imagine you could buy berkshire hathaway shares 30 years ago. Or MS or Apple.
Software holds intrinsic value. The more it's used, the more valuable it becomes.
You don't know anything about blockchain but keep that "currency" mindset there if you like.
We are talking about the future of finance, data handling, privacy etc
This has nothing to do with Feedback. Moved to a forum that's actually related to the topic instead.
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.
You are speculating in a currency, not investing in any type of asset with an intrinsic value and the exact same rules apply as to any other currency speculation and even more so since it is fully automated and not back by a regulator. It may do very well or it may not only time will tell.... The Swiss franc was considered the safe and obvious bet three decades ago when it was at 2.56 to day it's almost unitary. I hope you do well, but I would not bet on it against a well allocated portfolio....
Take out crypto loan against the asset rather than disposal or transfer no tax implications on the fiat you get out of that.
When you buy the crypto, that's an acquisition by you.
When you give it to her, that's a disposal by you. Assuming the crypto has gone up in value, you will be liable for CGT on the gain, just as if you had sold it.
Also, when you give it to her, that's a gift which attracts CAT (for which she, not you, is liable). Unless by by then the value of the crypto is very large indeed, there will likely be no tax payable, but the value of the gift (based on market value at the date of the gift) will eat into her lifetime allowance.
The key to understanding the tax implications of crypto transactions is this; they are the same as the tax implications of similar transactions involving other assets. There are no special tax rules for crypto.
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.
Won't be any tax liability attached, as crypto will be worth nothing by the time she draws it down. Buy her some magic beans as a backup plan.
Wanna buy some magic beans?
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 😜
Thank you so much. I will contact them.
I'm new here at boards.ie and first would like to say hello everyone.
I'm looking for a person who knows Irish revenue law good enough to help me understand how to do the taxation on crypto. I've had traded for a few years.
I'm looking for a reliable advices. I'm looking for a paid service. Is there any person/ company I can reach out? It would be even better if this person was Polish speaking.
Cheers!
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)
Anyone know if a trading212 loss in 2020 can still be used to offset capital gains declared in 2022 and onwards?
Thanks for that!
There isn't a set magic number. Google the badges of trade to get an understanding of where your activity may fit. The ebrief below may also help even though it's talking about corporation tax; the concepts are similar.
Is there any information anywhere on how many trades might label you as a stock/crypto trader? I couldn't find the answer anywhere
Whats a good rate matt?
Hey, are you still looking to sell the bitcoin? I will buy at a good rate
that's what I was hoping - at this stage I will probably just hold them as I wouldn't be able to afford the CGT at this point
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