Chartered Accountants and Cryptocurrency Specalists
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…
Read More Trading or Holding – Cryptocurrency Tax Implications
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…
Read More Tax implications on gifting and receiving cryptocurrency
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.…
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…
Read More Tax Treatment of Capital Assets in Cryptocurrency Mining
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…
Read More Migrating to New Zealand with Cryptocurrency – A Temporary Foreign Tax Exemption
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…
Read More Lessons from the 2017 bull run – from a Cryptocurrency Accountant
Tim Doyle, a Chartered Accountant, joins us to discuss how cryptocurrency taxation is handled in New Zealand. Tim’s been an accountant for over 10 years, and has honed his focus to cryptocurrency taxation for the past couple years. Tim shares…