SARS & cryto without a paper-trail.

[saor]

How do you keep SARS happy & cash out crypto you don't have records for? Here's a scenario:

*** 2017: Get airdropped XXX tokens.
*** Win more XXX tokens from random games on their forum.
*** (I bought more XXX at some point on etherdelta but I can't recall if I funded it with luno or some ETH I had lying around from something else)

These now reside in a private wallet and I no longer have access to the ERC20 wallets or any of the wallets connected to previous transactions on etherdelta etc.

How does one approach this?

 

[AdrianH]

How do you keep SARS happy & cash out crypto you don't have records for? Here's a scenario:

*** 2017: Get airdropped XXX tokens.
*** Win more XXX tokens from random games on their forum.
*** (I bought more XXX at some point on etherdelta but I can't recall if I funded it with luno or some ETH I had lying around from something else)

These now reside in a private wallet and I no longer have access to the ERC20 wallets or any of the wallets connected to previous transactions on etherdelta etc.

How does one approach this?

The approach is the same when you buy a new "something" and decide to keep it secret from the wife.

 

[Snyper564]

How do you keep SARS happy & cash out crypto you don't have records for? Here's a scenario:

*** 2017: Get airdropped XXX tokens.
*** Win more XXX tokens from random games on their forum.
*** (I bought more XXX at some point on etherdelta but I can't recall if I funded it with luno or some ETH I had lying around from something else)

These now reside in a private wallet and I no longer have access to the ERC20 wallets or any of the wallets connected to previous transactions on etherdelta etc.

How does one approach this?

Easy you have no records?

You have no base cost or purchase price.

In other words the profit or gain is fully taxable as there is no expense or no cost.

In short.

They are worth R250k you pay tax on the full 250k,

 

[airborne]

Find some dude to pay cash for them, always a few guys on Carb looking for crypto

 

[DapperDanMan]

Hey @saor, what is this cryto you speak of?

 

[Harmonic]

2017/2018. What a time to be alive.

Made a fair chunk of $$$ myself with a bot that traded about R250m of ethereum in total in two weeks when binance dropped the fees.

Had another mate that turned R50k of ethereum into more or less 2 bar playing the airdrop/ICO game.

Good luck on the taxes

 

[L-Dog]

Hopefully you didn't trade and just left them as an investment as capital gains tax isn't to bad. If is serious money get a proper accountant to assist /organise a meeting and with Sars or move to dubai / EL Salvador

 

[saor]

Easy you have no records?

You have no base cost or purchase price.

In other words the profit or gain is fully taxable as there is no expense or no cost.

In short.

They are worth R250k you pay tax on the full 250k,

Ok so SARS basically let you say "I don't have any records for how I came to acquire these funds" and will let you pay tax on the whole amount? How is the tax amount calculated in this case or is it a fixed amount for stuff like this?

Hopefully you didn't trade and just left them as an investment as capital gains tax isn't to bad. If is serious money get a proper accountant to assist /organise a meeting and with Sars or move to dubai / EL Salvador

The issue is I have no way to prove things either way so my instinct was just to avoid complications and pay the tax rather than trying to wiggle my way to cgt.

 

[saor]

2017/2018. What a time to be alive.

Made a fair chunk of $$$ myself with a bot that traded about R250m of ethereum in total in two weeks when binance dropped the fees.

Had another mate that turned R50k of ethereum into more or less 2 bar playing the airdrop/ICO game.

Good luck on the taxes

I was helping some guys proof-read their whitepaper for some (turns out bullshit) exchange they were launching. Got 3 ETH plus another 2 from a trading comp to test the system. So around 5 ETH for doing nothing. But I bought some YYY crypto with that ETH that I also want to cash out soon and again - no records because most of those wallets I abandoned.

So ja I've got a few things from the 2017 madness that have since gone up that I'd like to cash but I don't really have a paper-trail for any of it. That bull run was madness though - the amount of money being thrown around was crazy and you could pick literally anything and be up %% in days.

 

[Snyper564]

Ok so SARS basically let you say "I don't have any records for how I came to acquire these funds" and will let you pay tax on the whole amount? How is the tax amount calculated in this case or is it a fixed amount for stuff like this?


The issue is I have no way to prove things either way so my instinct was just to avoid complications and pay the tax rather than trying to wiggle my way to cgt.

Tax amount will be based on your tax sliding scale. If you trade you will likely be subject to income tax

 

[Fulcrum29]

All crypto I have is either mined or airdropped (yonks ago). I am surprised by how many wallets are abandoned. Yeah, as Snyder said above.

 

[L-Dog]

I was helping some guys proof-read their whitepaper for some (turns out bullshit) exchange they were launching. Got 3 ETH plus another 2 from a trading comp to test the system. So around 5 ETH for doing nothing. But I bought some YYY crypto with that ETH that I also want to cash out soon and again - no records because most of those wallets I abandoned.

So ja I've got a few things from the 2017 madness that have since gone up that I'd like to cash but I don't really have a paper-trail for any of it. That bull run was madness though - the amount of money being thrown around was crazy and you could pick literally anything and be up %% in days.

Don't you have an ETH address ? You can use etherscan to view the transaction history

 

[Fulcrum29]

There are crypto tax services available, though most are aimed at the US tax system. You can still use some to run crypto audit trails.

 

[Praemon]

I was helping some guys proof-read their whitepaper for some (turns out bullshit) exchange they were launching. Got 3 ETH plus another 2 from a trading comp to test the system. So around 5 ETH for doing nothing. But I bought some YYY crypto with that ETH that I also want to cash out soon and again - no records because most of those wallets I abandoned.

So ja I've got a few things from the 2017 madness that have since gone up that I'd like to cash but I don't really have a paper-trail for any of it. That bull run was madness though - the amount of money being thrown around was crazy and you could pick literally anything and be up %% in days.

The base cost then will likely be 0, and then you're taxed on your normal sliding rate for the year. Just add the income to your tax return. You could offset some of the tax by investing into an RA or something should you choose - that's how I generally offset my crypto profits. But I use Koinly to track all my transactions, and it provides a nice output of all data required for tax returns (but unless you know the wallets or can download transaction history, Koinly won't be very helpful).