IRD taxing on Cryptocurrency/Cryptoassets

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Forums › Finance and wealth management › IRD taxing on Cryptocurrency/Cryptoassets

nedkelly

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#280380 11-Dec-2020 11:17

So I was browsing around and found a link to the Cryptoassets page on IRD's website https://www.ird.govt.nz/cryptoassets

I did search Geekzone but not many topics came up on this and I wondered what peoples thoughts were on IRD trying to claim tax on crypto and how they would enforce it.

Hammerer

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#2620043 11-Dec-2020 11:29

Are you saying that people won't comply with the law and declare their income from crypto trading?

concordnz

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#2620044 11-Dec-2020 11:30

It's pretty straightforward (currently),
& they will enforce it the same way they do for any other assets like Gold.
If you are Audited and you have tried to hide things they will hit you with backtaxes & 20+% compounding interest rates.

If you declare everything like you should (same with gold bars/coins etc), then it's pretty clean & simple & you can sleep at night.
Make sure you document your 'reason for purchase' at time of purchase, etc.
A half decent accountant will have no problem then classifying them.
(you will have to do the hard yards each 31st March, to work out current values. (again keep records/evidence of how you worked out current values and what exchange s rates & where from etc).

jasonbug

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#2620047 11-Dec-2020 11:34

What do you mean "IRD trying to claim tax on crypto"?

Crypto trading is a taxable activity, should they not collect tax on it?

That's like saying IRD shouldn't try "claim tax" on cash purchases.

afe66

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#2620060 11-Dec-2020 12:04

Income is income so of course you should pay tax on it.
Onus is on you to declare all sources of income.

You might think they will never find out but of they do, its tax evasion and a big stick will hit you.

xyf

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#2657276 16-Feb-2021 08:32

Ive been thinking about this too since im also new to the whole income-outside-of-my-job-or-house-capital-gains. So you specify your increase in your portfolio then you pay a tax on that every year even if the full amount is still invested in said crypto?

BlinkyBill

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#2657284 16-Feb-2021 08:41

xyf:

Ive been thinking about this too since im also new to the whole income-outside-of-my-job-or-house-capital-gains. So you specify your increase in your portfolio then you pay a tax on that every year even if the full amount is still invested in said crypto?

the basis for assessing income is fully described at the IRD site linked above. You should read that carefully.

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GV27

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#2659313 19-Feb-2021 07:36

I wonder if there's enough interest in Crypto to warrant a thread. It seems like it might be a bit of fun.

freitasm

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#2659427 19-Feb-2021 09:38

GV27:

I wonder if there's enough interest in Crypto to warrant a thread. It seems like it might be a bit of fun.

You mean a sub-forum? If that's the case, Cryptocurrencies discussions fit in the existing Finance sub-forum.

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gcorgnet

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#2659434 19-Feb-2021 09:47

freitasm:

GV27:

I wonder if there's enough interest in Crypto to warrant a thread. It seems like it might be a bit of fun.

You mean a sub-forum? If that's the case, Cryptocurrencies discussions fit in the existing Finance sub-forum.

Guessing this post was missing the </sarcasm> tag

freitasm

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#2659496 19-Feb-2021 10:09

gcorgnet:

freitasm:

You mean a sub-forum? If that's the case, Cryptocurrencies discussions fit in the existing Finance sub-forum.

Guessing this post was missing the </sarcasm> tag

Possibly. As a means of payment, cryptocurrencies aren't suitable because of slow confirmation and extremely variable value. But if anyone wants to discuss it, sure go for it.

In private - I think, until proven contrary, most cryptocurrencies/ICOs/offers are scam.

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GV27

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#2659498 19-Feb-2021 10:11

freitasm:

You mean a sub-forum? If that's the case, Cryptocurrencies discussions fit in the existing Finance sub-forum.

I was thinking an alt-season thread or something similar, given current levels of interest in memecoins and so on.