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5 Things You Should Know About Crypto Taxes in Ireland

Cryptocurrencies are becoming increasingly mainstream in Ireland, as more and more cash-rich investors look at cryptocurrencies like Bitcoin and Ethereum as a viable investment option. In fact, Ireland is one of the few countries that has its own cryptocurrency — the Irishcoin — that people can actually use to purchase goods and services.  Yet, there seems to be alarmingly little information about the regulations around cryptocurrencies. Many people wrongly believe that because a crypto transaction is anonymous, it doesn’t result in any tax liability. On the contrary, one of the fundamental tenets of crypto is transparency — which means it’s

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Cryptocurrencies are becoming increasingly mainstream in Ireland, as more and more cash-rich investors look at cryptocurrencies like Bitcoin and Ethereum as a viable investment option. In fact, Ireland is one of the few countries that has its own cryptocurrency — the Irishcoin — that people can actually use to purchase goods and services. 

Yet, there seems to be alarmingly little information about the regulations around cryptocurrencies. Many people wrongly believe that because a crypto transaction is anonymous, it doesn’t result in any tax liability. On the contrary, one of the fundamental tenets of crypto is transparency — which means it’s actually fairly easy for Revenue to trace your transactions. In fact, in the USA the IRS recently got information about crypto investors from exchanges like Coinbase and sent letters to suspected tax defaulters. The UK’s HMRC also recently requested crypto exchanges for investor details and Ireland’s Revenue may not be far behind either. 

If you’re on the verge of filing your tax returns and are still on the fence about your crypto taxation, here are 5 things you need to know today.

# 1: Crypto investment is treated just like an investment in stocks or shares  

In Ireland, cryptocurrency investments are subject to the same regulations as investments in stocks and shares. This means that profits from crypto transactions are subject to capital gains tax at 33% at the time of disposal of the crypto — whether that’s a sale, gift, or exchange. However, the first €1,270 of your cumulative annual gains from crypto (after deducting expenses and losses from crypto investments) are exempt from tax. Only the amount over and above €1,270 is subject to 33% tax. However, even if you’re sure that no tax will be due, you still need to file a tax return. 

#2 How and when you need to pay the taxes

This can get a little complicated. You need to pay taxes in the same year that they become due but you need to declare them the following year. Also, if the crypto disposal happens between 1st January to 30th November, you need to pay Capital Gains Tax by 15th December of the same year. If the disposal happens between 1st to 31st December, you need to pay tax by 31st January the following year. 

How you need to pay taxes depends on whether you are self-employed or a PAYE (Pay As You Earn) individual. PAYE individuals need to file a CG1 return while self-employed people will fill out Form 11.

#3 You will need accurate records

All crypto disposals are subject to capital gains tax. This means you incur a tax liability whether you sell your cryptocurrency, exchange it for other cryptos, or even gift it to someone. Since most serious crypto investors undertake a bunch of transactions throughout the year, keeping track of these transactions can become a major task. It’s best to maintain detailed records of your crypto transactions as and when they happen. If you haven’t been keeping accurate records, you can use crypto tax software to help you with accurate transaction details.

#4 Don’t forget those losses

While you have to make sure you pay your Capital Gains Tax on time, do take your crypto losses into account when you’re filing your tax returns. Let’s say you make a profit on selling Bitcoin during the year, but you make a loss on selling Ethereum in the same year. You can deduct the losses on Ethereum from the Bitcoin profits when calculating your total capital gain

Not only that, but you can also deduct your losses from your capital gains in future years until you have completely offset your losses against your gains. So make sure to keep accurate records of your losses. Also, make sure that you file your tax returns even if you make a net loss in a given year and don’t actually have to pay any cryptocurrency tax

#5 It’s the right time to make an unprompted unqualified disclosure

Revenue departments around the world are starting to investigate crypto tax defaulters. If, for any reason, you haven’t paid any crypto taxes so far, don’t wait for an investigation or audit by Revenue. Simply contact Revenue and make an unprompted unqualified disclosure, including complete details of the crypto investments you’ve made over the years, and the interest arising from this (which is currently charged at 2%). You might have to pay a penalty as well (the amount is decided by Revenue). However, this kind of disclosure is a much safer bet in the long run. 

As Revenue starts doubling down on crypto tax evaders, take this time to make sure your crypto taxes are in order. If you feel a little lost and in need of professional help, consider hiring a crypto tax accountant; you’ll end up saving a lot of money over time. 

About the author:

Robin Singh is the co-founder and CEO of Koinly.io – a cryptocurrency tax platform that automatically generates capital gains reports for Ireland, UK, USA & other countries.

This is a sponsored post, created exclusively for our readers to discuss crypto taxes for Ireland. Read more in our editorial policy.

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Source: https://bitcoinsinireland.com/5-things-you-should-know-about-crypto-taxes-in-ireland/

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Avalanche raises $230M following sale of >1500% returning AVAX

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This season of the crypto-market has highlighted altcoins and altcoin projects that have been striving to bridge the gaps existing in the industry. Avalanche is one such project, with the same in the news today after it raised $230 million from the sale of its cryptocurrency, AVAX.

According to the foundation behind the blockchain, Avalanche received this sum of investment through a private sale to a group led by Polychain and Three Arrows Capital.

Reportedly, R/Crypto Fund, Dragonfly, CMS Holdings, Collab+Currency, Lvna Capital, and a group of angel investors and family offices also participated in the investment round. The token sale was completed in June and the objectives of the foundation were to support and accelerate the growth of decentralized finance [DeFi], enterprise application, and other use cases on the Avalanche public blockchain.

Its token AVAX has recorded tremendous growth, despite the market trend being increasingly bearish. The asset, at press time, was returning 1,589% to investors year-to-date after it rallied to $63.62. AVAX also registered a strong surge of almost 30% in one 24-hour window, a consequence of the latest updates to the ecosystem.

Another reason why the blockchain surged higher was the onboarding of several blue-chip DeFi projects like Aave, Curve, and SushiSwap. On Wednesday, Avalanche Foundation asked for ‘signaling’ from the Aave community to accept a deployment of the Aave protocol into Avalanche.

Aave ecosystem could leverage Avalanche’s blockchain due to scalability, high throughput, and near-instant finality. According to the blog,

“Through the Avalanche Rush program, the Avalanche foundation has allocated up to $20M AVAX for users of the Aave protocol over a three-month period to earn AVAX rewards while using Aave on Avalanche for the first phase of the program. This program will bring new users to the platform, and reach more users from the established Avalanche community.”

It added,

“Having the Aave community embrace deployment on established chains like Avalanche will allow more users to access Aave’s offerings across the DeFi ecosystem.”

With competition between layer one protocols heating up, Avalanche has been trying to secure a top position. According to Emin Gün Sirer, Director at the Avalanche Foundation, there is “still so much potential yet to be tapped at the intersection of institutional and decentralized finance on Avalanche.”

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Source: https://ambcrypto.com/avalanche-raises-230m-following-sale-of-1500-returning-avax

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Scaramucci’s SkyBridge Capital Secures $100M For Algorand Fund, Files For Crypto ETF

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Scaramucci’s SkyBridge Capital Secures $100M For Algorand Fund, Files For Crypto ETF

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The number of cryptocurrency-focused exchange-traded funds (ETFs) applications in the U.S. has been growing as several asset management companies have shown interest in offering their clients exposure to cryptocurrencies via regulated exchanges.

In an SEC filing on September 14, SkyBridge Capital became the latest to apply for a crypto-focused ETF – the First Trust SkyBridge Crypto Industry and Digital Economy ETF. According to the filing, if approved, the ETF will invest about 80% of its assets in companies representing the crypto-industry. This also means that the ETF will not have direct exposure to cryptocurrencies.

More recently, Anthony Scaramucci, the founder of the firm and former Whitehouse Communications Director, revealed that the investment firm now had over $700 million in crypto investments and intends to increase its positions in the market even further.

He stated this during an interview with CNBC Television yesterday in the aftermath of the ongoing SALT Conference New York 2021. During the interview, Scaramucci revealed that the firm was starting an Algorand fund that will be capped at $250 million and had already raised over $100 million.

Remarkably, the firm first added Bitcoin to its portfolio last and in July revealed that Bitcoin was the largest contributor to gains this year at the firm according to a Financial Times report. The firm has previously filed applications for both Bitcoin and Ethereum ETFs.

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Another notable cryptocurrency ETF development was the report that Fidelity Digital Assets met with SEC officials privately to push for the approval of their proposed bitcoin exchange-traded fund and argued the cryptocurrency market is now big enough to support it.

According to a Business Insider report, in the meeting, the firm cited an in-house survey that showed that bitcoin exchange-traded products held massive appeal to US institutions. They also argued that institutions had a strong interest in digital assets, and a significant number of institutional investors already hold cryptocurrencies. 

This argument has been made by other companies but has so far not swayed the SEC. The crypto-industry has been applying for cryptocurrency-focused ETFs for around eight years with the first being from Bitcoin billionaires, the Winklevoss brothers. Since then the SEC has been denying the application.

In 2021, there are more than 20 companies that have filed for crypto-focused ETFs with the SEC. Some include Galaxy Digital, VanEck, and Valkyrie Investments, all notable investment managers.

The SEC is yet to approve any of the applications. Gary Gensler, the SEC chair has stated that the commission is being cautious with the industry so as to be able to protect consumers maximally. However, there are speculations that approval may arrive before the end of this year. Just last month, Eric Balchunas and James Seyffart – Bloomberg’s in-house ETF analysts – on Tuesday published an investor note that speculated that a Bitcoin ETF approval may likely arrive in October.

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Source: https://zycrypto.com/scaramuccis-skybridge-capital-secures-100m-for-algorand-fund-files-for-crypto-etf/

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Shiba Inu Token Is Up 25% Following Coinbase Listing

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You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

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Source: https://cryptobriefing.com/shiba-inu-token-is-up-25-following-coinbase-listing/?utm_source=main_feed&utm_medium=rss

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