Price Increase - Irish tax

[Hynzie]

Can anyone confirm it's capital gains that's due on profits and not income tax? Assuming we'll all good tax paying citizens

 

 

[Guest]

It's capital gains tax, as long as you're not trading for a living you wouldn't have to pay income tax. There's info on citizens information about capital gains tax. I think it's 33% or so, but your first 1200 or something is tax free

[DtotheK]

Damn, I read somewhere that crypto was treated as a currency and as such, no need to pay tax on gains.

[Guest]

My understanding is that if you use it as a currency to buy stuff, then there's not tax liability. However, if you convert it to fiat, you didn't really hold it as currency, more as a digital asset, and assets are liable for capital gains. To be honest, if you wanted to get around all of this, you could get yourself a Ten X card or start withdrawing cash from a Bitcoin Atm. There wouldn't be any paper trail as such but if you made loads of money and we're making big purchases, you might draw the attention of revenue. You're then open to fines etc, so prob just better to declare it and pay the tax on it.

As far as I know, you pay your tax around October time for the previous year. So let's say you made a lot of money and cashed out in January of 2018, the tax wouldn't be due until October of 2019. I'm self employed and this is how it works for my income tax.

I could be completely wrong on this, so please do your own research!

 

[DtotheK]

21 hours ago, Niall said:

My understanding is that if you use it as a currency to buy stuff, then there's not tax liability. However, if you convert it to fiat, you didn't really hold it as currency, more as a digital asset, and assets are liable for capital gains. To be honest, if you wanted to get around all of this, you could get yourself a Ten X card or start withdrawing cash from a Bitcoin Atm. There wouldn't be any paper trail as such but if you made loads of money and we're making big purchases, you might draw the attention of revenue. You're then open to fines etc, so prob just better to declare it and pay the tax on it.

As far as I know, you pay your tax around October time for the previous year. So let's say you made a lot of money and cashed out in January of 2018, the tax wouldn't be due until October of 2019. I'm self employed and this is how it works for my income tax.

I could be completely wrong on this, so please do your own research!

 

Yeah, I've looked into options of converting it to goods in the past, pretty doable. Thanks though for all of the details..!