Electroneum tax laws?


#1

If we use electroneum as a currency to pay for milk lets just say, but we are paying for it with crypto profits, would we be liable to capital gains tax?

Also the same question about coins from the mobile miner, any input would be greatly appreciated.


#2

If you are talking about capital gained tax I am assuming you are from the uk. You will have an 11k tax free amount until you have to pay tax and I doubt you will be spending 11k annually buying milk so the short answer is no but the long answer is you will have to make a record just in case


#3

Im irish, but we have simmilar tax laws, hmm i do like milk haha, but what i mean is ok lets say etn price goes through the rough and make some nice money on it, cash out more than 11k, will i then have to pay 30% capital gains to buy anymore milk after that :joy:


#4

Please see my reply in the other thread regarding this with English tax law as the bases


#5

I guess we can just speculate, as this subject hasn’t come too often into high level discussions, at least not publicly.


#6

Capital Gains Tax allowances

You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).

The Capital Gains tax-free allowance is:

You can see tax-free allowances for previous years.

You may also be able to reduce your tax bill by deducting losses or claiming reliefs - this depends on the asset.

The above is a copy/paste from the www.gov.uk website.

Please note this should be used as referance for UK Citizens ONLY!


#7

So i dont need to pay tax on each trade i have made, just my overall gains ? I’m Irish so i think our allowance is much lower, something around 1,200


#8

Just one word…Bollocks!


#9

For US citizens the IRS wants to know every trade and every purchase you’ve done with crypto. Purchasing something with Crypto is considered a cash out.
Some representatives from congress have asked the IRS to update/clarify its rules as they find not being able to purchase a cup of coffee with Crypto ridiculous.


#10

Yes, because the US is kinda hard on cryptos.


#11

… Deleted as u pay tax regardless


#12

That’s why I won’t spend my coins regardless


#13

This whole law in the US with crypto is ridiculous to me. How are they going to be able to track every transactions we make or trade on exchanges?

And from what I heard, they don’t reimburse capital losses, but collect gains, which I find unfair. Are you able to clarify this?


#15

I actually had an idea regarding this. I have a trading bot (which is pretty shitty calibrated) and it normally only makes a few trades a day. My idea would be to put it on minimum margin trading, such as -/+ 0.5% making it trade many times per minute. I would then record all trades, calculate the value of both currencies in relation to USD at the time of the transaction. Which probably would take me 20 hours or so. Then send my massive 50+ page journal with thousands and thousands of transactions to the authority.
The fun thing is that I would only trade a few dollars through the bot that way, but it’s all about sending a message.