RE: Crypto Capital Gains Could Be Costly
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That's why I'm just never going to sell and borrow against crypto with various lending apps out there if I need to get some cash. The regs around going to exchange crypto for crypto/fiat means you're just getting taxed every which way so trying to minimise transactions is key. Still need to speak to my accountant mate about the implications of borrowing against crypto in the UK and clarify that but it makes the most sense to borrow rather than cash out to something that is losing purchasing power anyway!
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So what I’m looking at is taking out my principe so how can you tax me if I break even?
Then taking out the max amount that’s tax free about $4500 then it’s like I never spent anything and back to square one plus a little walking around money if I want to!
The rest goes into Sats to get interest I prefer getting 4% on something that goes up 200% a year then get 10% on something that goes down by 5-10% a year
Profit taking is about that taking profits not taking money that you have to owe someone else!
Don’t be greedy and live off your fiat you earn!
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Yes taking out principal is a good approach but not sure how it works as each tax year is different. You might only be able to take your principal amount tax free if that's what you spent in that tax year.
E.g. Last tax year, spent $5000 on crypto but didn't take anything out. This tax year, withdrew that $5k but you're $500 over the limit? Was it crypto-crypto too (includes stablecoins)? Would be worth checking to make sure you don't get hit.
Also, in the UK at least, you can count previous year losses towards your gain amount so you can have a higher gain this tax year. Might be the same for you but not sure how South Africa tax laws are.
Otherwise playing with house money is always fun
Also, crypto earnings come into effect here in the UK too so we get the double whammy income and cap gains!
Yeah I don;t mean ALL iv invested over the years, just what I've put in this year plus the tax free rate, I think that's a fair amount. The rest become sats and that's that.
Trying to keep my trades to a minimum. I also don't get the whole trading crypto for crypto as a tax event because when you trading crypto for crypto the fiat price is the same at the time, but the individual unit price is differing
It just seems like a stupid idea that wasn't well thought out, if I trade 1 eth for x amount of sats whats that got to do with the fiat value.
I don't give a fuck about the fiat value, I give a fuck that someone wants to give me more Sats than previously for an ETH
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Ah yeah OK you should be alright then. To be fair, that does sound like a solid plan. I've taken some losses in previous years so have a bit more to work with on the allowance here.
I hear you mate. Biggest crock that you have a fiat tax to pay when you don't even move in and out of fiat but between two different cryptocurrencies... Portugal? Lol