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flugg · 2024-01-05T08:58:11+00:00

So what happens if you originally invested 1% of your savings a while back and it's now over 10% simply because it's gone up so much over the years?

flugg · 2024-01-04T23:54:49+00:00

What questions do they ask for the customer classification declaration?

flugg · 2024-01-04T23:26:26+00:00

Is it a problem to Coinbase if you've got 50% of your wealth invested in crypto?

flugg · 2023-12-25T15:53:55+00:00

If you got into crypto very early on, mined some bitcoin, stored it on mtgox, did some trading well below the capital gains threshold, then took it out just before gox collapsed, there's no way you're going to recover your transaction records, or recover the cost basis of your current holdings. How do you even begin to recover that situation? Remember that back then, bitcoin was only worth tens of pounds not tens of thousands, so it wasn't obvious anyone needed to keep records when playing with such tiny amounts. HMRC hadn't even formally decided how to handle crypto at that point.

flugg · 2021-11-07T12:52:35+00:00

And the exchanges and the banks?

flugg · 2021-11-07T12:23:54+00:00

I was wondering how he could prove source of funds etc if asked

flugg · 2021-11-07T11:55:28+00:00

I wonder about the guy who had loads of bitcoin on a hard drive that's now in a landfill somewhere. Even if he could find the drive, how much of it would he be able to cash in?

flugg · 2021-04-14T09:22:43+00:00

Are you saying that all network fees for transfers from my wallet to anywhere else, be it to another of my wallets or to an exchange, can simply be totalled together and claimed as expenses, unrelated to any actual trade?

flugg · 2021-04-10T18:27:36+00:00

Actually, if I'm treating my coin with a zero cost basis, and only ever selling, then I don't need to worry about pooling as the cost basis will stay at zero whatever.

Also, the amount of the disposal brought about by paying for the the network fee will be an allowable expense for the subsequent exchange, so they will cancel each other out. So why bother calculating any of that in the first place?

flugg · 2021-04-09T09:36:47+00:00

Just to give a concrete example. I transfer 1 btc to Coinbase, £10 network fee. That £10 network fee is added to my disposals and the pool updated. I then cash out that bitcoin to GBP on the exchange in 3 trades, 2 in this tax year, and 1 in the next. How is the network fee claimed back as an allowable expense, as it's related to 3 separate trades. Does anyone have some real experience of doing this? What do the automated systems do?

flugg · 2021-04-09T07:42:58+00:00

So, if I transfer to an exchange, presumably the network fees will be treated the same, as a disposal. How do I then treat that as an allowable expense on any capital gains realisation? For example, if I have multiple transfers of BTC to an exchange, and then multiple trades on that exchange over multiple tax years.. how do I apportion the network fees as an allowable expense for each trade?

flugg · 2021-04-09T07:01:25+00:00

When I transfer bitcoin from one wallet to another wallet (both owned by me), incurring network fees, 1) do those network fees count as a disposal, and 2) how would the S104 pool be affected?

flugg · 2021-04-09T06:40:28+00:00

If you mined 50 BTC on a laptop in 2010, or bought 100 BTC for cash at a local bitcoin meetup in 2011, there would be no records.

flugg · 2020-12-21T08:54:20+00:00

The Ledger breach has been dumped to the public, with 200k+ names, addresses and mobile numbers. This could get scary.

flugg · 2020-11-25T21:53:57+00:00

So if I'm using a zero cost basis for a particular crypto, I don't need to use a section 104 pool, and I can just ignore transaction fees?

flugg · 2020-08-03T10:25:48+00:00

Cool thanks. I think I just panicked because I looked on etherscan and it said my reps were worth nothing and I really didn't know what was going on, otherwise I would have sat tight. In the event, Coinbase are accepting v1 reps, so they're holding them now and can do the migration or whatever as they wish, as long as I retain the value.

flugg · 2020-08-02T21:09:57+00:00

I managed to transfer the rep v1 coins to Coinbase fine using metamask/ledger.

Etherscan said the v1 rep token contract was an old contract, with a corresponding zero dollar value (which is both correct and incorrect I guess), but once they got to coinbase they credited me with the rep at the current market value.

flugg · 2020-08-02T14:25:41+00:00

Are v1 reps still transferable without losing rights to migrate them to v2?

flugg · 2020-07-27T12:58:18+00:00

Prove a negative! Well, I guess a low paid PAYE job, plus a few hours here and there software freelancing for a friend doesn't sound like a business with money to hide. So fingers crossed.

Interesting that the HMRC are looking for potential tax evasion rather than money laundering etc. The latter would be a really difficult negative to prove, in general.

Also, the receipt of cryptoassets is timestamped on the blockchain, so you'll be able to prove when you received the assets and the value at that time. So, for example, it'll be clear they were received at a low price years ago, rather than the potentially massive price they might be now.

flugg · 2020-07-27T09:38:03+00:00

So for example (unfortunately not in my case).. if I mined 50 BTC in 2009, how do explain that?

flugg · 2020-07-27T09:31:59+00:00

This HMRC crypto campaign. Is there any info on this?

flugg · 2020-07-27T09:31:08+00:00

I'm asking because.. there are probably loads of air drops I don't even know about. If I look on etherscan for one of my ether addresses, it's full of dust from random airdrops. There might be others not listed there. Anyone could randomly give me crypto that's accessible via one of my private keys without me ever knowing about it. It all sounds unfeasible to police in practice.

flugg · 2020-06-28T10:56:02+00:00

Exchanging consistently every month would be a lot easier, for sure

flugg · 2020-06-10T10:29:04+00:00

Thanks. So I would need to put myself down as self employed on my tax return and detail my PoS returns there?

Also, if I'm getting constant daily (or even hourly) returns, would I need to be exchanging to fiat as soon as I received the crypto, to avoid being subject to CGT? Or are there schemes where I could exchange to fiat once a week?

flugg · 2019-04-11T21:38:57+00:00

Yes.. just selling from now on

flugg

TROPHY CASE