Tax / Bank Implications?

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hugVP3v6

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I bought bitcoin before it was mainstream.
I have it on Luno now. If I sell it all in one bang, there will few million rands. If I transfer that all into my FNB, Im sure its going to appear suspecious. Im very average finacially, so this will be a suprising amount. What will happen next? I suspect I will have to pay capital gains tax on it, would the bank question this unusual activity in my account or is that none of thier business? Im just not sure whats going to happen if all of a sudden there is a few million is an otherwise average bank account.

Throw away account for obvious reasons.
 
Well that is a problem I would like to have :ROFL:.

Speak to an accountant, but on the cuff of it, I would suspect that CGT is probably going to happen if you put it in your FNB account. Now if you open up a foreign account...
 
A CGT event will be triggered. You'd need to declare this in your 2020 tax return if you sell the Bitcoin between now and February 2020. 40% of your capital gain will get added to your taxable income and you'd be paying either 41% or 45% tax on that. Luno would report this to SARS too so if you didn't declare it, SARS would still know.
 
No, I think this is a troll. I don't think any sane person would have bought BTC before it went mainstream and still have it after it hit $20k and now want to sell at $6k. Well, unless the person was in a coma.
 
alpacallama said:
A CGT event will be triggered. You'd need to declare this in your 2020 tax return if you sell the Bitcoin between now and February 2020. 40% of your capital gain will get added to your taxable income and you'd be paying either 41% or 45% tax on that. Luno would report this to SARS too so if you didn't declare it, SARS would still know.
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The tricky part is calculating your base cost and your taxable gain. Chances are if you're selling Bitcoin you're probably going to be dealing with multiple buy trades at different prices.
 
deweyzeph said:
The tricky part is calculating your base cost and your taxable gain. Chances are if you're selling Bitcoin you're probably going to be dealing with multiple buy trades at different prices.
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If he only bought once and sells once then it's easy but Luno can provide a statement with a breakdown if requested (you may have to ask more than once to get the correct info)
 
Also, depending on how long you've had the Bitcoin, you either declare it as a capital gain or it needs to be declared as a trade.
 
alpacallama said:
If he only bought once and sells once then it's easy but Luno can provide a statement with a breakdown if requested (you may have to ask more than once to get the correct info)
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You can pull a csv with all your Luno history from the website without having to contact Luno. It has everything, deposits, withdrawals, trades, and timestamps. I have mine saved to show the amount deposited for when I want to declare tax, probably next year.

Just go to your BTC wallet, scroll all the way to the bottom, and click on "download statement". Not sure how far back it goes but it has everything since I started in 2017.
 
konfab said:
You would need to speak to an expert on this, but off the top of my head,maybe an easy equities USD account?
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Hmm. Ok thanks. I'm thinking if one takes the OPs actual concerns and apply them to a less 'joking' time as some would say, like when btc is 100k for example, the question is still a pretty valid one.. What would be the steps an average Joe has to / could take to get the most out of selling off and having some millions u'd like to use to pay off bills etc
 
acidrain said:
This is what I would do. Small amounts and only when needed that way it doesn't sit in the account
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So ud still sell it off when it's at ATH then let it rest in luno? I see alot saying don't use luno/ice don't use a zar account.. What are the recommendations then? Pretend I'm an idiot
 
If you convert these BTC to ZAR or any other currency for that matter you will need to declare some kind of tax whether it be CGT or income tax. Putting it in an offshore account and not declaring it is tax evasion not avoidance...
 
Snyper564 said:
If you convert these BTC to ZAR or any other currency for that matter you will need to declare some kind of tax whether it be CGT or income tax. Putting it in an offshore account and not declaring it is tax evasion not avoidance...
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Agreed. The government needs that money more than you do. Your tax payments help to this wonderful country possible.
 
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