Crypto earnings & Capital Gains Tax

Dark Agent

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Also if I converted from zcash to bitcoin to tether?
Since I just transferring tether to bitcoin to Rand.

Lastly when do I need to declare it?
 

Dark Agent

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As I understand it will be capital gains tax, which is 18% of the amount you withdraw-your capital (which you already withdrew so just 18% of R420k.

On that, I would suggest holding on the your BTC just a little bit longer. Now is not a good time to sell.
Thanks,
I only use bitcoin as a transfer mechanism and not an investment. I saw opportunity to make money on mining via fpga and did it. I converted immediately to bitcoin and then to tether. So the value remained the same. $100 October is $100 in March(maybe $110 due to increase in value but that's just $10). Bitcoin was just a transfer mechanism.
 

Swa

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Also if I converted from zcash to bitcoin to tether?
Since I just transferring tether to bitcoin to Rand.

Lastly when do I need to declare it?
It's all confusing on SARS' part as there's no clear regulations. Converting can be seen as a tax event as you are making an exchange of goods based on current value. One thing we do know is that mining isn't a capital gain as it's a commercial enterprise. You'll be ordinarily taxed in the year it was mined based on the spot value at the time. The only capital gain is the difference in current value vs mined value if you can show it to be a capital holding.

My unofficial stance on this though is screw SARS as it's just too complicated with no realistic way to comply.
 

Snyper564

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It's not so simple. It's 18% of the amount that's added to your income after the allowed deduction and taxed according to your tax bracket. However what you made isn't a capital gain. If your capital you're referring to is what you paid for the machine then the value of the resulting Bitcoin can be seen as a product you produce with it. Thus only when selling the equipment will a capital gain or loss be incurred.

Actually the correct way is to offset the depreciation on the equipment against what you made. You'll then have had to pay tax on the resultant difference according to the value at the time. The only capital gain is then the difference in value between now and then. However since it hasn't been 3 years and you've converted multiple times and sold and rebought during that time it will be hard to claim it as capital gains.
I agree with this you didn't hold those coins but traded for others this is simply income tax.

I bought XRP in Dec two years ago made my 30k profit in 2 weeks cashed out and paid income tax at year end. This isn't CGT but income tax. Trading forex would have been similar to this.
 

Dark Agent

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I agree with this you didn't hold those coins but traded for others this is simply income tax.

I bought XRP in Dec two years ago made my 30k profit in 2 weeks cashed out and paid income tax at year end. This isn't CGT but income tax. Trading forex would have been similar to this.
My case it be personal income tax since not a business.

If I did it after Financial Year Feb 2019, I only need to declare it in perioid of March 2019- Feb 2020( which I need to file only in July 2020)?
My plan is to pay off the loan and the same installment use to save up for tax next year.
 

Snyper564

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My case it be personal income tax since not a business.

If I did it after Financial Year Feb 2019, I only need to declare it in perioid of March 2019- Feb 2020( which I need to file only in July 2020)?
My plan is to pay off the loan and the same installment use to save up for tax next year.
you can actually probably push that payment all the way till filing season closes in Nov next year. That's what I did left it till the last filing week as I needed to pay in .
 
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