Blog

Changing from Trading to Holding Cryptocurrency

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…

Trading or Holding – Cryptocurrency Tax Implications

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…

Tax implications on gifting and receiving cryptocurrency

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…

Cryptocurrency and GST in New Zealand

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…

Cryptocurrency Tax Update – October 2019

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.…

Tax Treatment of Capital Assets in Cryptocurrency Mining

We’ve recently been asked to discuss the tax treatment of capital assets purchased for cryptocurrency mining. In most situations capital assets (such as computers or graphics cards) are used 100% for the cryptocurrency mining operation and depreciation is claimed. The…

Migrating to New Zealand with Cryptocurrency – A Temporary Foreign Tax Exemption

A New Zealand tax resident normally pays tax on their world-wide income. However, for new migrants arriving to New Zealand, there is a temporary tax exemption on foreign income. If you qualify, you do not pay tax on your foreign…

Lessons from the 2017 bull run – from a Cryptocurrency Accountant

Bitcoin is up 52% this month (so far today). This reminds me of the bull run during late 2017 where checking the blockfolio app on my phone was as addictive as cocaine. Currently we are seeing bitcoin dominate; compared to…