Do you cash out?

I do yes, as I need pay off the mining equipment.

I think I am done buying equipment but you never know , next step is to get electrician to add more plugs in the garage if I want to expand.
 
Drifter said:
They cant see it as income tax.
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What makes you say that? Buying and selling assets with the intent of making profit is income in their eyes. What article stating they'll treat this differently did I miss?
 
Hamster said:
What makes you say that? Buying and selling assets with the intent of making profit is income in their eyes. What article stating they'll treat this differently did I miss?
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Isnt it better to just buy buy stuff with your Bitcoin?
 
genelock said:
If you cash out you will have to declare that income on your tax return. How will SARS feel about it if you don't?
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Well you are going to cash it out eventually if your intent was to make profit.

So now or later really doesn’t matter.
 
Hamster said:
What makes you say that? Buying and selling assets with the intent of making profit is income in their eyes. What article stating they'll treat this differently did I miss?
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In most cases income tax won't apply but capital gains tax will.
 
garp said:
In most cases income tax won't apply but capital gains tax will.
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Must be a technical reason why they'd handle this differently from investing/trading in shares then.

Anyway, I'll wait for the first test case to see what happens...if ever.
 
garp said:
In most cases income tax won't apply but capital gains tax will.
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For all traders it would end up counting at as capital gains tax and the onus is on you to report your buy value and sell value difference that is taxable. For some it would count as income tax and capital gains tax, if you do it "professionally" as a day trader or more than just a speculative buy and holder. Its a similar BS rule like degenerate gamblers in a casino who go there daily, they need to report the win/losses just like a regular professional day job income/loss except they always get screwed since its a casino. Casino users who just hit it lucky going every once in a while afaik dont need to pay tax on that big win. The rules for all these taxes are vague and full of holes.
 
The times I have cashed out (only to my Luno ZAR wallet, not to my bank account), I had to buy in again at a higher price.

The price will be R400k by the end of the year, maybe even R500k if I look at how things have gone from end Oct when I joined (at R100k) to now. Every time I feel it cant go higher I kick myself for sticking to my plan of only investing a fixed amount in the beginning of the month. At the moment I am only investing a measly R1k every month as that is what I feel I can lose and wont miss. But it grows so much between each deposit...
 
Also...if I bought 10 000 tokens of something 3 months ago when BTC was $5000, it's going to cost me almost 3 times as much to buy the same amount right now, assuming its BTC value hasn't shifted much. I'm not day-trading, I try to pick projects that have utility and room to grow. So I'd rather hold those 10 000 tokens until they've reached a valuation that's representative of the project having real-world products, rather than cash out now when most projects are still in the testing phase.
 
genelock said:
Isnt it better to just buy buy stuff with your Bitcoin?
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I personally think it's better to buy stuff with ethereum. Super cheap transaction fees compare to bitcoin. But I'm still hodling to bitcoin as it's a good store of value
 
Trading for fun. Up about 20% in 3 month <- Yes this is terrible. Yes, what was I thinking! I'm in this for the ride. If I had just held I would be up over 400%. Again I see this as a long term education that may eventually pay something on the side indefinitely. At the moment I'm cashed out. Trying to read technical analysis at the moment is as good as using tea leaves. Need to keep your ear to the ground, and I'm a bit busy for that at the moment.
 
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