how do you manage your crypto gains/profit in RSA?

[Dannler]

so how do you guys manage your gains/profit here in RSA when you want to cash out a lil bit?
and the name of the game of course is to have the least amount of transfer fees at the of the day

wallet to luno and luno to your bank?
wallet to ice3 to bank?
ice3 debit card?

im not sure if there is any other

i see you get crypto visa/ master card cards that works like "gift vouchers" (crypto.com) in USA and EU, just load funds directly to the card and there you go, but i have not seen any such product here in RSA

 

[Pansyfaust]

If I want to cash out a portion, I'll wait till Sunday Evening late (usually network fees are lowest then) then send to my Luno account and cash out that way.

Or if you really want to sell BTC you can sell to a few people on carb.

Never really saw the need for a crypto visa card.

 

[Dannler]

Never really saw the need for a crypto visa card.

i guess its a chance to eliminate more transfer fees and transfer time.

and with those ''gift cards" id assume tax will be taken out of the equation.

 

[el3venth]

Well, it's still capital gains, so still taxable.
Just remember to deduct any banking fees from your tax declaration.

 

[Dannler]

Just remember to deduct any banking fees from your tax declaration.

that includes transfer fees from origin wallet up until funds shows in my bank account

 

[Pansyfaust]

i guess its a chance to eliminate more transfer fees and transfer time.

and with those ''gift cards" id assume tax will be taken out of the equation.

I think if you need to do amounts over 20K then you need to do FICA stuff anyway, in which case all your transactions are already known if you get audited etc.

 

[Pansyfaust]

Well, it's still capital gains, so still taxable.
Just remember to deduct any banking fees from your tax declaration.

Crypto is not automatically CGT-depends on the intention had when purchasing crypto.

If you bought crypto and traded it multiple times within short timespan, and gain/loss is income. If you bought crypto and held it for at least 3 years, it can fall into the category of CGT.

 

[Dannler]

Crypto is not automatically CGT-depends on the intention had when purchasing crypto.

If you bought crypto and traded it multiple times within short timespan, and gain/loss is income. If you bought crypto and held it for at least 3 years, it can fall into the category of CGT.

so mining will be seen as income if i want to cash out to make a purchase of somewhat ect?

 

[Pansyfaust]

so mining will be seen as income if i want to cash out to make a purchase of somewhat ect?

Yes, mining will be seen as income. You can claim back the cost of electricity, hardware costs, software and other fees associated with mining to offset taxable income.

 

[Dannler]

Yes, mining will be seen as income. You can claim back the cost of electricity, hardware costs, software and other fees associated with mining to offset taxable income.

where would one find info on that or a guide besides on sars page itself

 

[Pansyfaust]

where would one find info on that or a guide besides on sars page itself

There's nothing specific to crypto mining deductions, but mining is an income generating activity:

https://www.sars.gov.za/AllDocs/Documents/Legal/FAQs%20-%20Cryptocurrencies.pdf

So any cost with receipts associated with generating that income can be offset against the total income. For an esoteric example, if you are renting a place and within the one room it's specifically set up to house your mining rigs, you can likely deduct a portion of your rental costs based on the square meterage of that room.

 

[Pancake]

SARS working overtime to centralise crypto

 

[rinners]

Well, it's still capital gains, so still taxable.
Just remember to deduct any banking fees from your tax declaration.

Capital gains or personal income?

 

[reVolt]

Not a tax expert, but i think generally speaking: trading = CGT and mining = personal income

 

[SuperLlama]

Not a tax expert, but i think generally speaking: trading = CGT and mining = personal income

Trading = income unless you hold that asset for 3+ years.

 

[Pansyfaust]

Not a tax expert, but i think generally speaking: trading = CGT and mining = personal income

Trading is not considered CGT as you are generating income from the activity. If you "trade" and buy a stock and hold that stock for like 3 years, then sell, you can consider that as CGT event when you sell. But if you buy stock in Jan and sell in Feb, that profit is taxed as income.

 

[oceaneering]

so how do you guys manage your gains/profit here in RSA when you want to cash out a lil bit?
and the name of the game of course is to have the least amount of transfer fees at the of the day

wallet to luno and luno to your bank?
wallet to ice3 to bank?
ice3 debit card?

im not sure if there is any other

i see you get crypto visa/ master card cards that works like "gift vouchers" (crypto.com) in USA and EU, just load funds directly to the card and there you go, but i have not seen any such product here in RSA

I will swap them with tokens so that I can save on transaction fees.

 

[Zer0_Gravity]

Ive debated this with a few people , What if I never realize gains ? Yes I got to USDT and all that but never back into a bank account ? Where is it seen as a gain ? When you completed the trade or when the money is in the bank account ?

 

[Dom]

My important 2c - SARS (don't mess around with this).