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IRD may hate me for this year’s figure. ATO may be happy next year though.
This also means (presumably) that the IRD can request user details and do an automatic tax calculation. Under current tax law interpretation, all transactions - even between wallets - is taxable, so this will be interesting to watch.
Never. I am scared if I do anything on crypto the IRD will come after me to report it and I don’t want to make my taxes complicated.
Honestly had I done this, I'd say "fuck it" - surely you can figure out the USD value you had at the start, and the USD value at the end. Figure out the gain or loss from that, and if the IRS / IRD / HMRC etc doesn't like it just give them the data
So basically the first statement is irrelevant - it's taxed. I'm not dissing you, I'm dissing the IRD.
I think you just lifted the big 93% off that giant pdf…the numbers don’t add up though….I think that’s a 93% of a piece of the total assets the IRD confiscated
Similar for those of us in New Zealand, the IRD are actually really good to deal with IF you are proactive and honest with them from the get go. If you contact them before they have to chase you, and explain your situation, finances etc. and ask for help toward a resolution, they will often write down a significant portion of what you owe, if not all (for smaller amounts) or they will make sure you have payment arrangements that are not overbearing and cause hardship to you/your family. On the other hand, if you know you owe them money, you don’t call them and wait for them to chase you, and are not helpful, they will bury you, garnish your wages, and generally make life difficult.
Yeah don't tell anyone. Especially not the IRD
Have the NZ IRD formally accepted the proposed 5% assumed return basis for tax treatment? No they have not - and failure to disclose this is a highly misleading omission for a promoter of a regulated financial product.So in truth investing in this fund is a gamble that IRD will accept the 5% fixed return basis for tax...if not who knows what could be the liability...This fund can be seen as what bankers (and governments potentially) might do when they see a radical new asset rapidly funneling peoples savings and trust from the state fiat monopoly over which the banks have gained near exclusive franchise - toward an alternative- they might think 'how can we make gain and capture some profit (and taxes) from this, if not erode and in the longer term control and/or destroy it...'The result is a fund which will appeal to some people purely as an investment commodity and not as a vehicle for bringing about the real change needed to the monetary system. Such weak willed investors who purely seek monetary gain and do not care about the values and ethos that are the basis of Bitcoins value would be the first to dump their investment if/when BTC price declines, accelerating market volatility...meanwhile the bankers have guaranteed themselves a very nice 2.5% return and if IRD accept the proposal, IRD get the tax on 5% regardless too.If successful, and there is every chance the IRD/government might accept the tax proposal, products like this could lead toward private custody of Bitcoin being outlawed or heavily sanctioned - another strategic step that the bankers celebrate as protecting and restoring their monetary market dominance.
I dropped my ledger on the way to Great Barrier island. What a shame, sorry IRD
Yes. Here in NZ its a taxable event the moment you swap it for another coin. I say fuck you IRD my Moons staying here till you bring in laws to make NZ a crypto tax have. Holy fuck the people trying to get in here then will 10x. So, hold your Moons, let them do something better than fiat ever could. And of course, under reddits TOS, Moons have no value.
IRD: Sir, we have noticed that you have a lot of Bitcoin. Whose are they and what do you exactly do? Crypto miner: Mine
I really appreciate your insight brother, thank you so much for your help. I hope you don’t mind- at the risk of sounding like an idiot. But how would the IRD know that I’ve received these? I’m not trying to commit tax fraud I’m just genuinely uneducated/uninformed and trying to clue myself up lol. Only been in crypto for a few months and haven’t sold for fiat yet
The US politicians seem very inept on crypto for sure, unfortunately the IRS where I live (IRD) has very detailed tax laws on crypto and what needs to be paid. I'm tempted to test how well they actually track it but I also am not thrilled about the idea of jail
It's not really an issue, you would just defer payment until the next finanacial year and claim the loss. Get a chartered accountant to liaise between IRD and you, they can buy credits , delay and do super low interest payment plans. In the end you only pay tax on money you make.
Non U.S. based pools could certainly stop servicing us because they don't want to meet reporting requirements. U.S . Pools would figure it out but likely pay substantially less . The big exchanges already do kyc & reporting Coinbase would just get bigger, certain projects might not be available (directly) for U.S. investors. I expect the house, the upcoming reconciliation bill, or IRD rule making process to correct this screwy definition of "broker's before it goes into effect in 2023. Don't buy the FUD. Do buy the dip.
1) HK does not have any regulation regarding taxation on mining as of now, you can still send anonymous email to IRD to check 2) Why would you buy hardware through US company who will supply you "made in china" hardware when you could be better off buying directly from China or just go Dragon Center ShumShiPo for one.
If you're an NZ citizen and buying crypto with your NZ bank accounts but you live overseas, the government won't tax you because they only tax you in NZ sourced income and crypto isn't sourced from NZ so they won't tax you. I emailed IRD about it and that's what they told me.
I’d say if you cash out a significant amount, your bank will most definitely alert the IRD…
Yeah it's on the IRD website, I just googled crypto tax NZ. But if you have trouble finding it I can link it in the morning
Very interesting points raised here. May I ask, are you declaring all your crypto holdings to the IRD?? I know they’ve been pressuring local exchanges to hand over user information but not all have caved yet.. When I read the documentation from the IRD in relation to crypto currencies and declaration of gains I couldn’t believe how much they’re asking users to disclose... even wallet addresses?! I haven’t declared my holdings at all because I don’t have the funds to pay the provisional tax from the gains.. am I correct in assuming you have to declare and pay this even if you haven’t cashed out and realised such gains??
Dude if you’re a kiwi Kia Ora but also use koinly, they’re compatible with IRD requirements.
True. However it is feeling more and more as if a government ban is unlikely. Crypto is now big business. The IRD has issued tax instructions on how to treat crypto. The SEC has said bitcoin and ether are not securities. On what basis could it be banned when it is just like digital gold, or investing in soy beans or whatever?
no it's totally illegal in Auckland. The IRD will be paying him a visit this weekend.