You need to keep records for your cryptocurrency activity. Having a system for keeping accurate tax records, and storing them in an organised way will make it more efficient to prepare financial statements, answer queries from IRD, provide information to…
A shoe shop sells a pair of shoes to a customer – a taxable event. The difference between the sale price to the customer, and the cost price from their supplier, is profit. Like the shoe shop, the sale of…
This article outlines our: 1. Tax Summary for Cryptocurrency2. Cryptocurrency End of Year Checklist3. How we can help as cryptocurrency accountants and tax advisers If you have any questions, please don’t hesitate to get in touch Tax Summary for Cryptocurrency IRD…
IRD have released a consultation paper about an exclusion of GST and financial arrangements to cryptocurrencies. In summary, IRD propose to exclude GST and financial arrangement rules from cryptocurrency retrospectively from 1 January 2009. This is positive news for New…
Understanding the tax consequences of selling cryptocurrency is an important aspect for cryptocurrency investors. The sale is a key event which crystallises a taxable gain or loss. Until the sale, the gain/loss is “on paper” (or online), telling you how…
After the peak of the cryptocurrency market in 2017, many individuals were actively involved in trading cryptocurrency. The market was increasing at a rapid pace and there was significant hype surrounding cryptocurrency. Individuals would be trading multiple tokens, using multiple…
What are the key differences and why it matters? Trading and holding cryptocurrency are two common activities. They have many similar characteristics and profits from each activity will generally result in taxable income. This article will outline the different characteristics…
Christmas is coming and from the recent emails we’ve been receiving it sounds like Santa may be delivering cryptocurrency this year. This article will explore the tax implications on gifting and receiving cryptocurrency. Gifting Cryptocurrency A gift of property is…
The purpose of this article is to highlight cryptocurrency Goods and Services Tax (GST) risks and uncertainties. Specifically, how New Zealand taxpayers involved in cryptocurrency are disadvantaged due to existing GST legislation. We have requested further information and clarification from…
I recently had a phone call with Inland Revenue (IR) discussing common cryptocurrency tax situations we are experiencing. The purpose of the phone call was to discuss these common situations, how we are preparing cryptocurrency financial statements and calculating taxable income.…