The Bitcoin Thread

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garp said:
Doesn't seem like it. But I would imagine it will come to a head soon as more people withdraw and declare gains. Accountants seem to tend to recommend the most conservative approach (i.e. declaring it as income) but this is not necessarily the correct approach. As I understand it amounts to intention - if you bought BTC only intending to use it to pay for stuff, the intention was not make money so there should be no tax incurred, if you bought it as a speculative investment then capital gains is incurred, if you trade it back and forth actively to make an income, then profits incur income (or company) tax.
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Interesting.

Wonder where Wolfie and his ASIC miners fit in?
 
biometrics said:
Interesting.

Wonder where Wolfie and his ASIC miners fit in?
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Well, that would pretty much squarely fall under generating an income. But if they never convert to Rands this would probably not incur income tax. Purchasing online locally with cryptocurrency would no doubt be considered a way of getting income from it, but unless we start having to justify every private purchase, I don't see how this can currently be controlled.
 
biometrics said:
Die twak wat jy aan my verkoop het. :crylaugh:

Do you disagree that you need to declare your income?
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I've posted many times about declaring income. Any income should be declared and taxed accordingly. That's the law of the land. If you want to live here, then you have to abide by it whether you agree with it or like it or not. Actually you don't have to if you don't mind jail.
 
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garp said:
As I understand it amounts to intention - if you bought BTC only intending to use it to pay for stuff, the intention was not make money so there should be no tax incurred, if you bought it as a speculative investment then capital gains is incurred, if you trade it back and forth actively to make an income, then profits incur income (or company) tax.
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Intention? How exactly do you prove that? And just to be clear, it sounds like everyone in here is talking about investment growth... mining profits will be slightly different but still income.
 
Sabre Wulf said:
Intention? How exactly do you prove that? And just to be clear, it sounds like everyone in here is talking about investment growth... mining profits will be slightly different but still income.
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It's not up to you to prove - it's down to what SARS determines your intention to be. Buy and sell a house every ten years and you're only liable for CGT (if not a primary residence) and transfer fees. Buy and sell a house every month and you'll be considered a property developer that must pay income or company tax on your profits. The underlying principal is that SARS is making a distinction based on your intention - to earn a regular income vs invest in an asset.
 
Don't know if this was posted....

https://bitcoinmagazine.com/articles/bitcoin-beginners-guide-surviving-bgold-and-segwit2x-forks/


1. It’s best to control your private keys yourself before October 25, and hold on to them until after the SegWit2x fork, mid-November.

2. To be on the safe side, avoid buying or selling any "BTC" and don't make any transactions shortly after the SegWit2x fork.

3. As the dust settles after the SegWit2x fork, access and split your coins. (How to do this will be explained on Bitcoin Magazine once there is more clarity.)
 
HunterNW said:
Don't know if this was posted....

https://bitcoinmagazine.com/articles/bitcoin-beginners-guide-surviving-bgold-and-segwit2x-forks/


1. It’s best to control your private keys yourself before October 25, and hold on to them until after the SegWit2x fork, mid-November.

2. To be on the safe side, avoid buying or selling any "BTC" and don't make any transactions shortly after the SegWit2x fork.

3. As the dust settles after the SegWit2x fork, access and split your coins. (How to do this will be explained on Bitcoin Magazine once there is more clarity.)
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Sounds a bit messy tbh.

Who is planning on cashing out before the fork to be on the safe side?
 
garp said:
It's not up to you to prove - it's down to what SARS determines your intention to be. Buy and sell a house every ten years and you're only liable for CGT (if not a primary residence) and transfer fees. Buy and sell a house every month and you'll be considered a property developer that must pay income or company tax on your profits. The underlying principal is that SARS is making a distinction based on your intention - to earn a regular income vs invest in an asset.
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But that has nothing to do with intention and everything to do with clear and simple rules. Bottom line is you have to declare any income you receive. How SARS sees it from a tax perspective is for debate between you and SARS. If you inherit an asset through a deceased estate and sell it to split between yourself and siblings, was your intention investing in an asset? No. Will you pay CGT? Yes.
 
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Sabre Wulf said:
But that has nothing to do with intention and everything to do with clear and simple rules. Bottom line is you have to declare any income you receive. How SARS sees it from a tax perspective is for debate between you and SARS. If you inherit an asset through a deceased estate and sell it to split between yourself and siblings, was your intention investing in an asset? No. Will you pay CGT? Yes.
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Agreed. At the most basic level, you must declare any earnings from Bitcoin as part of your income for the year, and pay tax depending on the tax range you fall into.
 
On all these forks coming and everyone saying you must have the private key, it should be fine using Exodus then, right? Since you have the private key on your local PC?
 
Voicy said:
Why are you okes selling now? Expecting it to dip?
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Imo if you're essentially trading bitcoin (buying / selling over shorter timeframes) and you're not looking at the charts & news & trends - you're just going in blind. Charts allow you to see patterns emerging and the best place to buy in anticipation of those patters forming - to just buy bitcoin or any asset based on the current price without any broader context is to rely on luck rather than market indicators and patterns of human behaviour. If you're just buying and holding for the long-term (investing) then you can get away with a buy low and hold approach without much concern for the daily swings in prices.

You can make a lot more money treating crypto like a stock rather than a gamble.

(Not specifically at you Voicy...just making a general point.)
 
saor said:
You can make a lot more money treating crypto like a stock rather than a gamble.)
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I don't know how to read these candle charts. So... I've got my own piece of paper with info of the last year and buy/sell to what I think is happening. :erm: More that doubled my initial investment. O yes... I use all you clever guys as a "chart" and "pattern". :D
 
Praemon said:
On all these forks coming and everyone saying you must have the private key, it should be fine using Exodus then, right? Since you have the private key on your local PC?
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Was fine for me when the Bitcoin Cash split happened, and after a while they released a method for you to split your Bitcoin Cash appart and claim it, though you had to have it transfered to a compatible wallet as they did not support Bitcoin Cash at that time. They do now.
 
Ockie said:
Was fine for me when the Bitcoin Cash split happened, and after a while they released a method for you to split your Bitcoin Cash appart and claim it, though you had to have it transfered to a compatible wallet as they did not support Bitcoin Cash at that time. They do now.
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Okay, thanks. Will keep my BTC in Exodus then.
 
My plan is to move my BTC to a different address after 2X, that way nobody can move any BTC from my existing wallet (there will be none left). And I can decide what to do with my 2X if there is ever any value.
 
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