Category: 8. A guide to paying tax on crypto

You may decide that risk of coming to the attention of the tax authority doesn’t justify the hassle of figuring out your potential liability. That choice is yours, but the next article in this section explains how online crypto tax services work to try to automate the arduous task of accurately calculating the tax liabilities from you… Continue reading Meh, what’s the worst that can happen?

Given that selling your crypto at a net profit is likely to incur a tax cost, you want to consider a different approach to unlocking its value. There are now a huge number of crypto banking services that will offer instant loans against crypto collateral. There is a separate knowledge base article on the subject of… Continue reading Taking a loan rather than selling

Forks and Airdrops may be considered a form of income, but a lot will depend on how the individual Forks or Airdrops are managed by the organisations behind them. Some good news Even though there will be guidance available from your tax authority, it will still be a daunting task to collate your trading history… Continue reading Forks/Airdrops

Where you derive a regular income from a crypto asset or service, the pesky taxman may also want to know about it. Here are some of the most obvious, and again, this will vary by country. Trading If you are trading to the extent that it constitutes a source of income, then you may be… Continue reading Taxable Income Streams

Buying & Selling The most obvious activity which is subject to Capital Gains is buying then selling cryptocurrency – buying in itself isn’t a taxable event.  If you made a single purchase of a cryptocurrency funded with fiat (e.g Euros) and then sold the entire amount for Euros in a single trade, you can simply… Continue reading Capital Gains

One of the reasons why the issue of crypto taxation is so complicated is that you may be liable for at least two types of taxation – Capital Gains and Income Tax. As mentioned above, if your country of residence classifies crypto as property it will be subject to Capital Gains. This simply means that… Continue reading Capital Gains & Income Tax

Any tax you are liable for on the sale of your crypto will depend on how your tax authority regards cryptocurrency. Some of the main differentiators classify crytpo as: Foreign Currency Though Bitcoin, and many coins that have followed, function as currency, their speculative nature and source of competition with national currencies, means that very… Continue reading How tax authorities classify crypto

What you’ll learn Different tax classifications of crypto Capital Gains vs Income Tax Taxable crypto events What you should do now Please note that this article is not tax advice. Consult a qualified tax accountant/professional or contact your local tax authority for clarification of how rules on crypto taxation  may apply to you. At times… Continue reading A guide to paying tax on crypto