XRP!!!

[Pansyfaust]

So my return is done, I did not submit as capital gain but as trading so I can deduct expenses, SARS did ask for paperwork, always had that ready. Anyway they are happy with my return.

What paperwork did they ask for trading?

 

[withaai]

What paperwork did they ask for trading?

As I am trading in my own name they wanted bank statements, and invoices for my internet costs and reason why I made a loss. I did not make a loss trading but when deducting expenses needed to be able to trade I made a loss.

 

[JayKay]

Sorry if this is a bit off topic, but with 2 accountants in the room perhaps you could help me and others who see this.

How does it work with regards to income from mining and tax returns. Over the past financial year I have been mining ethereum but have only sold R20,000 worth on Luno and withdrew that to my regular bank account. I spent R100,000 initially on the mining equipment. Would I offset the R100,000 against the R20,000 I withdrew, hence a loss of R80,000 for declaration purposes? Do I declare the remaining eth I have on the blockchain or does that only come into the equation if/when I cash it out?

On-Topic - I also have invested in some XRP and think it will bring big things to the crypto world moving forward. Sure there are those that say it is centralized, and yes I think it is. But moving forward we would be naive to think that ALL crypto will be decentralized, that ain't gonna happen. Blockchain tech is going to play a bigger role in all aspects of life moving forward and for mass adoption to take effect then rules and regulations will have to be put in place on certain aspects. XRP is focused on the banking sector, probably one of the most regulated sectors out there, so for it to work and be trusted in the banking industry it will have to be regulated.
I think in the future we will just have decentralized and centralized blockchain technology... a mix for the masses.

 

[Pansyfaust]

Sorry if this is a bit off topic, but with 2 accountants in the room perhaps you could help me and others who see this.

How does it work with regards to income from mining and tax returns. Over the past financial year I have been mining ethereum but have only sold R20,000 worth on Luno and withdrew that to my regular bank account. I spent R100,000 initially on the mining equipment. Would I offset the R100,000 against the R20,000 I withdrew, hence a loss of R80,000 for declaration purposes? Do I declare the remaining eth I have on the blockchain or does that only come into the equation if/when I cash it out?

On-Topic - I also have invested in some XRP and think it will bring big things to the crypto world moving forward. Sure there are those that say it is centralized, and yes I think it is. But moving forward we would be naive to think that ALL crypto will be decentralized, that ain't gonna happen. Blockchain tech is going to play a bigger role in all aspects of life moving forward and for mass adoption to take effect then rules and regulations will have to be put in place on certain aspects. XRP is focused on the banking sector, probably one of the most regulated sectors out there, so for it to work and be trusted in the banking industry it will have to be regulated.
I think in the future we will just have decentralized and centralized blockchain technology... a mix for the masses.

The accountants in the room can correct me, but I believe you cant deduct the initial expense of the R100K minus the 20K, unless you divested and sold the equipment for a loss--then the loss can be added to your income expenses. However, the losses made from crypto seem to be "ring" fenced, meaning you can only offset the costs/loss against current income derived from crypto, and not your total income from other jobs/investments. I believe if the costs are more than your income, the cost carries over to the following year's crypto income should there be any

The 20K you've withdrawn is regular income, although the electricity costs,rental/bond/rates, depreciation costs of the hardware,internet,windows/linux software costs are deductible (not sure on exactly how much or if a %).

Im not too sure about the eth not exchanged. This is where it get's somewhat murky i believe. You can declare them as income, pay the tax on them, and if they appreciate in value, not pay any future tax on them when cashing out?(totally unsure here). Although, I believe if you use them to make profit in some other way(via trading?ICO investment etc), you probably have to declare the income derived there. This is not financial advice, so please double check any idea/possibility with your accountant.

 

[Altus7]

Sorry if this is a bit off topic, but with 2 accountants in the room perhaps you could help me and others who see this.

How does it work with regards to income from mining and tax returns. Over the past financial year I have been mining ethereum but have only sold R20,000 worth on Luno and withdrew that to my regular bank account. I spent R100,000 initially on the mining equipment. Would I offset the R100,000 against the R20,000 I withdrew, hence a loss of R80,000 for declaration purposes? Do I declare the remaining eth I have on the blockchain or does that only come into the equation if/when I cash it out?

On-Topic - I also have invested in some XRP and think it will bring big things to the crypto world moving forward. Sure there are those that say it is centralized, and yes I think it is. But moving forward we would be naive to think that ALL crypto will be decentralized, that ain't gonna happen. Blockchain tech is going to play a bigger role in all aspects of life moving forward and for mass adoption to take effect then rules and regulations will have to be put in place on certain aspects. XRP is focused on the banking sector, probably one of the most regulated sectors out there, so for it to work and be trusted in the banking industry it will have to be regulated.
I think in the future we will just have decentralized and centralized blockchain technology... a mix for the masses.

Everything @Pansyfaust said sounds correct. You will have to submit your return the same way Withaai did it show as other income. I explained to Pansyfaust about a month ago what needs to be done since he's a trader he will not be able to declare it as capital gain (I am a long term investor and thats why I submit my crypto income as Capital gain) but as normal income. Of course he will be able to get some deductions as mentioned above which you will be getting as well.

Should you need any help just let me know.

 

[Altus7]

@JayKay One more thing keep all your slips!!! All expenses everything!

 

[Altus7]

Any HODLERS LEFT????

 

[Snyper564]

Any HODLERS LEFT????

Kekeke sold mine for USD 4.1 a piece almost 2 years ago at its absolute peak

And on a side note declared everything for SARS purposes as income NOT CGT as this was pure speculation and paid the respective tax case closed.

 

[Pansyfaust]

Kekeke sold mine for USD 4.1 a piece almost 2 years ago at its absolute peak

And on a side note declared everything for SARS purposes as income NOT CGT as this was pure speculation and paid the respective tax case closed.

it never got over $4? Which exchange was that?

 

[Snyper564]

it never got over $4? Which exchange was that?

Or 3.55 it's been a while... Was cex.io

 

[PeePeePooPoo]

Pump and dump

Sent from my SM-N950F using Tapatalk