Cryptocurrency

[scooterscot]

Sure it's a forum; seek professional advice but what I'm saying still stands, going from BTC to ETH is a taxable event and does reset DE crypto year holding clock. I have a mate getting hit hard by this as we speak - in his case, ignorance is no defence; if you don't calculate the gains at point of trade the DE authorities will (unfavourably unfortunately in his case).

The ignorance defence doesn't wash with HMRC either, I'm sure many of us here are earning two contract rates the way things are going, so take my advice and research the tax implications.

It's not ignorance it's fact. I can't speak in individual cases but it's like your friend is on the receiving end of some injustice.

It could not be clearer, the Steueramt here in München only care when it's returned to FIAT and that is was held for more than one year. They do not have the time or resources to understand thousands of transactions per year between different alt-coins:

"The distinction in German law stays the same: Private entities do not have to pay taxes on the gains if they hold their cryptocurrencies (starting from the first conversion of fiat currency into cryptocurrency) for more than a year. Legal entities are obliged to pay taxes on proceeds the moment it is cashed out to fiat currencies again or exchanged for other economic assets."

https://blog.neufund.org/cryptotaxes...d-c82cd512a403

[scooterscot]

Expect some drops today

SEOUL (Reuters) - The South Korean government on Thursday said it plans to ban cryptocurrency trading, sending bitcoin prices plummeting and throwing the virtual coin market into turmoil as the nation’s police and tax authorities raided local exchanges on alleged tax evasion.

https://www.reuters.com/article/us-s...-idUSKBN1F002B

Reuters doing a bit of insider trading by publishing misinformation?

"Korea update, source, finance journalist in Korea.
There were raids by the revenue services. Revenue cannot ban crypto. Mandate is to ensure tax records are up to date for exchanges and clients. No discussion of any banCrypto regulation bill are being drafted by special task team."

[VirtualMonkey]

Have asked my accountant for clarification on this;
At what time does the CGT become payable?
I could invest say £10 and buy bitcoin. Then I trade the bitcoin for another coin and back again then trade that bitcoin for a third type of coin, etc.
Is it charged every time a transaction is made or just when you ‘cash out’?
If it’s cash out then what would define the cash out? Presumably transfer to FIAT currency in my bank account

His reply:
Basically, every transaction subject to CGT is separate and based on the date of disposal.
With crypto currency, as there is no physical asset, I believe that it would be just when you make a disposal back into “normal” currency that a CGT point would be triggered.
However, I am sure the HMRC with update the rules and clarify this position as more and more people get involved in it.

[Murder1]

His reply:
Basically, every transaction subject to CGT is separate and based on the date of disposal.
With crypto currency, as there is no physical asset, I believe that it would be just when you make a disposal back into “normal” currency that a CGT point would be triggered.
However, I am sure the HMRC with update the rules and clarify this position as more and more people get involved in it.

That's essentially the advice from my accountant

[Jog On]

Reuters doing a bit of insider trading by publishing misinformation?

"Korea update, source, finance journalist in Korea.
There were raids by the revenue services. Revenue cannot ban crypto. Mandate is to ensure tax records are up to date for exchanges and clients. No discussion of any banCrypto regulation bill are being drafted by special task team."

This should be market crashing news given the amount of trade through S Korea. Either it's not as bad as reported or someone with very deep pockets is buying the dip.

[VirtualMonkey]

This should be market crashing news given the amount of trade through S Korea. Either it's not as bad as reported or someone with very deep pockets is buying the dip.

S.Korean government...or Reuters

[psychocandy]

£70/month.

You can mine what you like, as I understand it. Already on my home PC (single 960 GPU) I had a go at mining Sia, SmartCash and BTC. Just for laughs of course. Made around $30 in a few days

So I guess you would mine whatever is most profitable.

Really? I thought home pcs were pretty much pointless for mining these days? Especially BTC?

Might have a go at SC then....

[FrontEnder]

Really? I thought home pcs were pretty much pointless for mining these days? Especially BTC?

Might have a go at SC then....

The problem is it will fry your processor in no time. If you have an old one you that won't need replacing, it might work. Plus the electricity costs.

If I had an old laptop I'd definitely have it running in my desk drawer at work, plugged in permanently

[Murder1]

Why not just cloud mine instead - I've not yet looked at the cost comparison between the two approaches but I found buying the mining rig to be cost prohibitive as well as time consuming to setup/maintain.

I've been tempted to look into Genesis mining / Hashflare etc but not had the time

[FrontEnder]

It's not ignorance it's fact. I can't speak in individual cases but it's like your friend is on the receiving end of some injustice.

It could not be clearer, the Steueramt here in München only care when it's returned to FIAT and that is was held for more than one year. They do not have the time or resources to understand thousands of transactions per year between different alt-coins:

Not only that, but it wouldn't actually result in any more tax revenue. A lot of work for no extra gain.