Crypto earnings & Capital Gains Tax

[SaiyanZ]

I can claim for losses from SARS right?

I think if you have made profits on other investments like shares then you should be able to offset those profits with the crypto losses before calculating tax.

 

[RossCo_]

When does the R40 000 reset?

 

[Sly21C]

Americans have to also pay tax on crypto to crypto trades on international exchanges. That is just pure theft. Tax should only be on crypto to fiat, not crypto to crypto.

 

[mk1]

https://mybroadband.co.za/news/cryp...your-bitcoin-and-ethereum-mining-profits.html

You can deduct the cost of your rig and running costs. Also trading losses, if you have any.

 

[balrog]

So it seems the safest way is to pay your income tax rate on all Crypto to fiat payouts from Luno. Ugh - that's gonna sting. *SIGH*

SO for every Rand I pay out, I will put one in my home loan. Keep it in my bond for as long as possible to save on interest, then pay over the required amount (according to my income tax rate) to SARS. Can at least get something for my tax money then by saving on bond interest *CRY*

 

[*SynergyX*]

as far as im concerned -- i bought bitcoin and then it got stolen in some hack...

never going to see my bank account again --- tax man can suck it.

 

[SaiyanZ]

So it seems the safest way is to pay your income tax rate on all Crypto to fiat payouts from Luno. Ugh - that's gonna sting. *SIGH*

SO for every Rand I pay out, I will put one in my home loan. Keep it in my bond for as long as possible to save on interest, then pay over the required amount (according to my income tax rate) to SARS. Can at least get something for my tax money then by saving on bond interest *CRY*

You only have to pay tax on profits. Not all withdrawals. If you take out less than you put in then you don't have to pay any tax but probably still need to declare it. Just keep proof of the money sent to the exchange so that you can show SARS if they dig.

 

[balrog]

You only have to pay tax on profits. Not all withdrawals. If you take out less than you put in then you don't have to pay any tax but probably still need to declare it. Just keep proof of the money sent to the exchange so that you can show SARS if they dig.

Thanks, I will use that for the 2017/18 tax return. But currently I only have about R10k more to go, then all the fiat I have ever put in equals my withdrawals And there is still a bundle I hold in crypto, and its still growing nicely...

The plan this year, is to pay off some stuff from my crypto gains, so the taxman will unfortunately want to claim his pound of flesh....

 

[SaiyanZ]

Thanks, I will use that for the 2017/18 tax return. But currently I only have about R10k more to go, then all the fiat I have ever put in equals my withdrawals And there is still a bundle I hold in crypto, and its still growing nicely...

The plan this year, is to pay off some stuff from my crypto gains, so the taxman will unfortunately want to claim his pound of flesh....

I will only withdraw in cash when I need it or for that Lambo. So for the next year or so I will just keep trading and growing my portfolio without having to worry about tax issues.

I would suggest this to everyone. Only withdraw in cash if you actually need the money for something or if you want to exit the crypto market for a while.

 

[abvrnd]

Just don't talk about fight club...

 

[SaiyanZ]

Seems like the treasury wants to put annoying rules in place:

“Treasury has proposed to include the acquisition or disposal of any cryptocurrency under the ring-fencing of assessed loss provisions (colloquially referred to as suspect trades).”

“This will result in cryptocurrency dealers not being able to offset the losses incurred from the dealing in cryptocurrencies from any other trade.”

“In other words, these losses are ring-fenced to be used only against future profits earned from cryptocurrencies.”

https://mybroadband.co.za/news/cryp...could-be-exempt-from-vat-in-south-africa.html

 

[Method]

So any gains in crypto is seen as Capital gains, that is 100% the case?

I would hate to pay income tax on it >.<

 

[Swa]

Seems like the treasury wants to put annoying rules in place:



https://mybroadband.co.za/news/cryp...could-be-exempt-from-vat-in-south-africa.html

SARS is seeing the writing on the wall. In a few years plenty of people are not just going to want to declare crypto losses but will have to for survival. Don't know about the legal constitutionality of that but this is why I say screw SARS because they will screw you.

 

[Easter Bunny]

i love how mybb has so many articles about how to calculate your crypto tax and how to see what tax you need to pay and how luno is helping... and then it's just words saying nothing.

as i understand it, if i have put R2500 into luno and altcoinexchange (in total), and have only bought and sold coins in a failed attempt at winning, but haven't cashed out anything, i don't need to declare anything, because none of that money has made it back to my bank account? i'm never planning on putting in more and have decided to see if i can one day make back what i lost. at the moment i'm calling it school fees.

 

[seted]

i love how mybb has so many articles about how to calculate your crypto tax and how to see what tax you need to pay and how luno is helping... and then it's just words saying nothing.

as i understand it, if i have put R2500 into luno and altcoinexchange (in total), and have only bought and sold coins in a failed attempt at winning, but haven't cashed out anything, i don't need to declare anything, because none of that money has made it back to my bank account? i'm never planning on putting in more and have decided to see if i can one day make back what i lost. at the moment i'm calling it school fees.

South Africa's income tax system is based on accrual. The question is, when did the income accrue to you? It doesn't matter if the money is in your bank account or with an exchange. The moment you become unconditionally entitled to that money, SARS must be given its cut.

 

[Easter Bunny]

South Africa's income tax system is based on accrual. The question is, when did the income accrue to you? It doesn't matter if the money is in your bank account or with an exchange. The moment you become unconditionally entitled to that money, SARS must be given its cut.

well fudge. this makes it difficult again. was hoping i'd only have to figure it out when i withdraw.

i followed this:

(from here https://thebeancounter.co.za/why-you-want-to-declare-your-cryptocurrency-to-sars)

and got this:


this would be the part i fill out then?

 

[Swa]

i love how mybb has so many articles about how to calculate your crypto tax and how to see what tax you need to pay and how luno is helping... and then it's just words saying nothing.

as i understand it, if i have put R2500 into luno and altcoinexchange (in total), and have only bought and sold coins in a failed attempt at winning, but haven't cashed out anything, i don't need to declare anything, because none of that money has made it back to my bank account? i'm never planning on putting in more and have decided to see if i can one day make back what i lost. at the moment i'm calling it school fees.

South Africa's income tax system is based on accrual. The question is, when did the income accrue to you? It doesn't matter if the money is in your bank account or with an exchange. The moment you become unconditionally entitled to that money, SARS must be given its cut.

This. Whether money is in your bank account or not is irrelevant. If you bought and sold at a profit then technically you have to pay tax on that. But if you're going to declare profit you'd better declare losses as well. A simple way to do it for multiple trades throughout the day is to take last selling balance in in the year minus starting balance.