Hey everyone, I have been daytrading NFTs for last two months and made 30ETH or so, I am not too sure what the best plan would be and was hoping to get some recommendations. I was planning in just setting up an APY.
Any advice/recommendations are welcome
Thanks
@SBOB: That's interesting.
Obviously I'm not sure of the inner workings of the taxation system.
Let's say you have no assets, and no income. But what if you had +$180k gains in one year, and then -$180k losses the next year. Would that mean, the first year you had to pay $81k in taxes?
And would that mean the next year, the government then pays you $81k? Or are the government simply pocketing the first payment, and not doing anything about the second tax year?
That's why it seems to make more sense to keep crypto value in the crypto market, and only pay tax on the actual gains realised. I mean, you are afterall paying for this investment using money that was already taxed. It quickly falls into the category of immoral, as the government gets to triple-dip their taxes on the same money.
But what if you had +$180k gains in one year, and then -$180k losses the next year. Would that mean, the first year you had to pay $81k in taxes?
That is a zero tax liability.
It quickly falls into the category of immoral, as the government gets to triple-dip their taxes on the same money.
The feds only exist to steal your productivity (money).
There are a few countries that don't steal or very little.
Malaysia
Dominican Republic
Singapore
Czech Republic
Mexico
Guatemala
Vietnam
Andorra
Belize
United Arab Emirates
St. Kitts And Nevis
Cayman Islands
Bahamas
Vanuatu
Monaco
The Caribbean
Cyprus
Isle of Man
Anguilla
Dominica
Brunei
Panama
Estonia
Malta
Antigua
Nevis
Labuan
Hong Kong
Gibraltar
Switzer land
Bahamas
Puerto Rico
Marshall Islands
Vanuatu
RAK
Hungary
Scotland
BVI
St. Lucia
New Zealand
Mauritius
Ireland
Cook Islands
Samoa
Seychelles
That is a zero tax liability.
not if the first happened in one financial year and the second happened the year after
Your CGT event/declaration applies to the FY it occurs in.
Cant carry forward gains for hopeful future loses
@SBOB: I guess the question I'm asking is, can you carry current losses to cover for previous gains?
Sounds reasonable to me.
And I still don't think you have to pay taxes every year, but just when you sell, and make capital gains. I could be wrong.
I guess the question I'm asking is, can you carry current losses to cover for previous gains?
no, but you can carry forwarded losses to offset future gains.
Loss in FY21 for example can be used to offset a gain in FY22
Cant use a gain in FY21 and say 'here is an IOU, but trust me, im going to lose money in FY22 so it wont matter'
Cant say 'but ATO, i plan to make a loss next year, so please dont make me pay CGT this year'
@SBOB: Okay, I think my hunch was correct.
You can/should offset your losses into your gains, and reduce your taxable amount. Although this is usually done by blending one investment into another (eg stocks into other stocks/property). It's called Negative Gearing, and doesn't apply to only properties. But it does get done for the same investment year-on-year. That way the gov doesn't tax you triple-times for the same money.
And people usually pay taxes on shares every year or two, depending on the actual portfolio or the share, since businesses split and roll their quarterly/annual profits into divideds. Which is why it's not quite applicable to crypto HODL'ers.
Also, you don't have to split the CGT over the period. It can be a single lump sum. This also reduces your taxable amount.
I found some sources, not sure of their accuracy but they sound credible:
https://www.fool.com.au/2020/10/27/do-you-have-to-pay-tax-on…
https://curveaccountants.com.au/negative-gearing-and-shares/
https://www.hrblock.com.au/tax-academy/tax-on-dividends-inve…
I hope this was useful, and maybe someone who's more knowledgeable can be helpful and shed some light on this subject.
Keep trading? If your being legit. Honestly keep at it at this rate u will be able to retire in 2 years
I still got uni, and this life isnt for me :(
not financial advice: there are impermanent losses and fees with yield farming. Also can have a % fee just for staking, unstaking and converting tokens if you have to. There is also impermanent gain. so afaik, if eth goes up or down, you only get the amount you put into the pool basically. might be better to hodl and the token appreciates vs apy+staking fees
There is no impermanent loss when staking on the Beacon chain PoS and single side yield farming.
The staking fees can be reduced by cross-chain staking like moving the Ether to Polygon, Arbitrum One, Binance SC, Fantom, Avalanche, etc.
oops, guess I was talking about lp pairs.
Hold and stake it. Would wait till the next bull run and cash out some or all.
💎 🙌
Well done on the profits. You should be engaging a tax accountant ASAP to get an understanding on how much CGT you’ll need to pay this financial year - hopefully you’ve been keeping records
Just add another letter to it, turn it all into METH, goodluck
Who is buying your Ether and Bitcoin? People that are smarter than you.
We have just completed an allocation of cryptoassets to our corporate treasury, our firm’s first of its kind investment in the asset class. This includes Bitcoin and Ethereum tokens, and carbon offsets to maintain a net-zero carbon transaction:
Feb 8 2022
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NEWS PROVIDED BYKPMG LLP Feb 07, 2022, 11:30 ET
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I thought the title originally said what to do with a lot of Meth 😳
I guess it’s off to Specsavers for me ..
hahaha :D
@Kangal:
Ato disagrees with you
You made a trade, and a capital gain or lose event occurs, based on the equivalent fiat value at that time