The Finance and Expenditure Committee of New Zealand has prepared a report from their cryptocurrency enquiry. It focuses on recommending and advising the government to prepare for regulatory policies and find a legal stance on cryptocurrencies. There was a recommendation regarding the…
Author: Tim Doyle
Claiming Cryptocurrency Expenses
We are often asked, what expenses can I claim for my cryptocurrency activity? The answer will depend on whether you are classified as an investor or a trader of cryptocurrency. Profit from both investor's and traders' sales of cryptocurrency is…
2023 Cryptocurrency Financial Statements & Tax Returns
We’d like to start preparing your 2023 financial statements and tax return and need information from you. To accurately calculate your taxes, we need to have details of every single transaction involving buying, selling, swapping, earning/staking, gifting, airdrops, ICOs and margin/futures…
Read More 2023 Cryptocurrency Financial Statements & Tax Returns
Tax implications of FTX and Celsius Bankruptcy
Earlier this month, we presented to IRD about claiming tax loss for taxpayers who held cryptocurrency on these platforms. A summary of that presentation can be found here. We have now received a reply to that presentation, and this article…
FTX & Celsius Bankruptcy – IRD Presentation
Note: IRD has now replied to our presentation. They have issues about the timing of the deductibility, and if in fact the tokens are worthless on 31 March 2023 which can be viewed here. Tim recently presented to Inland Revenue…
Crypto Tax Update (2023 Market Decline)
In recent months, we have had many difficult conversations with cryptocurrency clients about their tax liability for the 2022 financial year (from 1 April 2021 to 31 March 2022). Many of our clients made significant profits in the 2022 financial…
Tax Position on Sacrificing Tokens to Pulse Chain
Some clients have sacrificed HEX tokens with the intention to receive PULSE tokens once they are released. This article considers the tax position and the current application of the income tax legislation, draft IRD guidelines on DEFI protocols, and our…
DEFI Disposal & Acquisition Concepts
I recently presented at the Chartered Accountants Australia New Zealand (CAANZ) tax conference in Christchurch about cryptocurrency tax. The presentation included disposal and acquisition concepts of cryptocurrency DEFI tax which are outlined in this article. Some cryptocurrency investors will not…
Implications of Cryptocurrency as Excepted Financial Arrangements
In March 2022, IRD released a new bill that classifies cryptocurrency as excepted financial arrangements (EFA). This was the same bill that removed GST from most cryptocurrencies and is retrospectively applied to 1 January 2009. The classification of cryptocurrencies as…
Read More Implications of Cryptocurrency as Excepted Financial Arrangements
Accounting for Celsius Losses
Celsius is a cryptocurrency lending company. The primary service offered was a staking service. Users could deposit cryptocurrency into a Celsius wallet and earn a yield on the deposit (similar to a bank offering a term deposit). Celsius also offered…