The Bitcoin Thread

Status
Not open for further replies.
Sensorei said:
Remember to pay your 40% capital gains tax on those BTC profits guys! :crylaugh:
Click to expand...

/shrug, even if 50% someone who bought in a few weeks ago is breaking even if cashing out today, nevermind those who have been in in for years
 
Zulfi said:
Yeah i been meanin to ask.. aren't there tax implications on this?
Click to expand...

Bitcoin is defined as an asset. So when you sell it you need to pay capital gains tax. An individual’s taxable capital gain for the 2017 year of assessment is 40% of the net capital gain. But you don't pay CGT on the first R40,000 profit.

A guide to CGT for individuals

But if you do not sell your BTC, and trade with it directly, then you are not liable for tax. Win!
 
Sensorei said:
Bitcoin is defined as an asset. So when you sell it you need to pay capital gains tax. An individual’s taxable capital gain for the 2017 year of assessment is 40% of the net capital gain. But you don't pay CGT on the first R40,000 profit.

A guide to CGT for individuals

But if you do not sell your BTC, and trade with it directly, then you are not liable for tax. Win!
Click to expand...

Important to note that the 40% refers to your taxable gain, not the percentage of tax as some here seem to believe.
 
Zulfi said:
Yeah i been meanin to ask.. aren't there tax implications on this?
Click to expand...

basically, if you cash out into your bank account declare it, pay your dues etc cos they see it anyway
 
Do any of you have auto payments scheduled to fund your Luno account? Is it as simple as using the correct reference number or do you still need to go to the site and do a recon of some kind?
 
garp said:
Important to note that the 40% refers to your taxable gain, not the percentage of tax as some here seem to believe.
Click to expand...
Does his mean.. if profit was 100.. then only 40% (R40) is taxable?? After the first R40 000 that is
 
Thanks for the CGT guide...damn, it's high!!!

Need to move to the USA - :cool:

The IRS taxes long-term capital gains at a substantially reduced rate as a means of encouraging individuals and businesses to keep their investments. The difference between the long-term capital gains rate, generally referred to as simply the capital gains rate, and the ordinary income tax rate, which applies to short-term gains, can be as much as 20%.

In 2015, the capital gains rate for those in the 10 and 15% income tax brackets is 0%, meaning those who earn the least are not required to pay any income tax on profits from investments held longer than one year.

For those in the 25 to 35% tax brackets, the capital gains tax is 15%. For the wealthiest citizens who fall into the 39.6% income tax bracket, the capital gains rate is still only 20%.

Read more: Comparing Long-Term vs. Short-Term Capital Gain Tax Rates | Investopedia https://www.investopedia.com/articl...term-capital-gain-tax-rates.asp#ixzz4zcBWa2xy
Click to expand...
 
Chris_the_Brit said:
Thanks for the CGT guide...damn, it's high!!!

Need to move to the USA - :cool:
Click to expand...

Just to re-iterate - it's not 40% of your total gain.

It's 40% of your gain, less the exclusion (importantly you get an exclusion for every year you had the asset) which is then taxed at your marginal rate - so effectively it's below a maximum ~40% of 40% of your gain.
 
Status
Not open for further replies.
Back
Top
Sign up to the MyBroadband newsletter
X