Crypto tax situation - Read post 1 for thread banned users

Think you are over thinking things and/or worrying about nothing. People transfer money from their investments into their bank accounts all the time. If somehow the financial institution believes the activity has triggered their anti money laundering system then you can just advise them where it came from if asked.

On the taxes side of things, you'll need to follow the first in first out principle when calculating your gains. So you start with the first batch you purchased and get their euro equivalent at the time of purchase and subtract it from the euro value of it now/when you sell. And repeat for each batch. Remember you get a yearly exempt gain amount of €1270 so perhaps you might want to consider disposing of some in 2021 and some in 2022 to take advantage of the annual exemption amount.

Don't forget you are likely holding Bitcoin cash, gold, diamond and Satoshi vision coins equal in amount to your BTC holdings at the time they were created. You could flog those without affecting your BTC holdings.

I don't know the answer to this, but is FIFO definitely the correct way to calculate it in Ireland? I've heard on American podcasts that it might be optional for them, not sure if it's the same in Ireland though.

Let's say you bought Bitcoin last year and sent it to your cold wallet. This year you bought more bitcoin and left it on Coinbase and subsequently sold the Bitcoin from Coinbase, wouldn't it be easy to prove which batch was which?

If a forced FIFO does somehow apply, wouldn't that help avoid the bed and breakfast rule because now you're selling older coins?

Fair play, that's actually nice to hear, glad someone's escaping the burden of the unfair punitive CGT here. So you'll be permanently moving to NZ? That's a massive move to be fair, hopefully it ticks all the boxes for you

I am going through this thread now but is there a guide somewhere on minimising tax from trading and investing from an Irish perspective, either by depositing the funds somewhere like AAVE, MakerDAO, or Anchor etc and borrowing against my assets, or registering a limited company to reduce tax?

I know there is some deadline approaching Wednesday and I am concerned.

A huge move! Literally the other side of the world. :)

You said you bought 7 years ago. Since then, the BTC blockchain has been forked - copied - several times. The copies contain the same information from the original blockchain at the time they forked, but get a different coin name, so if you owned one bitcoin when it forked, you will automatically own that same coin in the new forked blockchain, even if the name of the coin is different.

This only really applies if you actually owned the BTC and have the keys to it, not if they are/were on an exchange.

They keys to your BTC will be the same on the new chains/coins, so be very carefull if your holdings are non trivial in value, because if those keys fall into the wrong hands (fake/malicious wallet) while trying to access the forked blockchains, they will rapidly be used to tranfer your original and high value BTC to the fake wallet creator.

There is a quick way of accessing the forked coins and a safe way. The safe way is you export your BTC wallet keys, you then create a second BTC wallet and transfer your BTC to this new wallet from the original wallet. This creates a new set of keys for the BTC. The set of keys you exported before making the transfer, are still valid for the forked coins, so you can safely load those keys into wallets for those forked coins, because even in the unlikely event you use a malicious wallet, your original BTC are now safe. Obviously you could lose the forked coins, but that is less of a financial hit.

Forked coins €:

Bitcoin Cash - BCH 587.49

Bitcoin BTG - 57.59

Bitcoin SV (Satoshi Vision) - 154.41

Bitcoin Private BTCP - 2.91

Bitcoin Diamond BCD -1.76

etc

https://99bitcoins.com/bitcoin-forks/

I heard some US influencers and others talk about depositing their crypto somewhere, not selling it, but borrowing against it as this limits or negates taxable events? Apparently this goes on in traditional finance also. Others have also suggested to me using a limited company could mean taxes are cheaper than 33%? I just got into this around October last year so before the end of the year I made if anything a few hundred, if I was not actually at a loss. This year things are different. Happy to learn there is some pressure off and I have time to get things in order.

We would like everything to be above board and taxes paid but it is complicated:

My partner and I (not married, not civil partner) both had accounts on different exchanges where our funds were pooled but for the most part when it was in an account in my name the balance was very close to the several thousand we deposited over a few months as little profits were made, though later this year when the funds were in an account in her name we saw significant gains. We would prefer if taxes were just paid in either my name or hers rather than both, is there a good way to do this, perhaps by just withdrawing from my own account exactly what I put in leaving the balance at zero, and then paying taxes on profits from either our combined amount or just her initial amount?

The funds have been through so many different CEX, some KYC, some not, and so many different DEX trades and different Metamasks, network bridges, risky smart contracts etc. and considering what we would like to do with just one of us paying the taxes, piecing it altogether will be incredibly difficult. We never expected things to go so well so we did not keep proper records or track of old wallets with nothing left in them. Will it suffice to just go through our bank statements (or just hers?), work out the total we ever deposited, subtract it from the total we withdraw leaving all accounts at zero, and then pay 33% of that?

Where can I find a good accountant or financial advisor well versed in crypto? There are very few that come up when searching online.

Oh I didn't realise they had an option specifically for Ireland! Cheers

Any reported loss, automatically carries forward and is available as an offset against profits in future years.

Yup - FIFO applies here in Ireland

I was just replying to the thread in general, I was reading some of the earlier posts and people seemed to be unsure re the Irish position.

Very basic question here, first time CGT payer.

I understand you need to pay the tax first in December (for that year until November), and then file it later, before November the following year.

Why then do I see this rush / people putting in a lot of work for the filing date in November? Don't you already have to have had all your calculations done 11 months earlier (in order to pay it)? And the November date should just be like showing your workings?

Or am I reading it wrong, and the bulk of the work is actually always for the December date every year, rather than the November date.

Sorry again for the basic question.

Thanks. That explains it.