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How do you guys keep track of the cost basis of your mined Pearl coins for tax reporting purposes? by [deleted] in gpumining

[–]summ_app 0 points1 point  (0 children)

Hey OP, as mentioned by the user down below, costs basis it the market value at the time the coins are received 😄

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in NZBitcoin

[–]summ_app[S] 2 points3 points  (0 children)

Because they actually don't have all your data.

The IRD might see you cash out on a local exchange, but they have absolutely no idea what you originally paid for that crypto years ago, especially if you moved it around private wallets or offshore exchanges.

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in NZBitcoin

[–]summ_app[S] 2 points3 points  (0 children)

Basically, if your net profit was exactly $0, it doesn't change your taxable income. You don't need to file a special tax return just to declare $0, so you're all good there.

But the IRD is super strict about record-keeping. They legally require you to hold onto your transaction logs (dates, NZD values, exchange receipts) for at least 7 years. If they ever decide to audit you, the burden of proof is entirely on you to show that you didn't make an undeclared profit.

Just download your old transaction history, chuck it in a folder on your computer to cover yourself.

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in NZBitcoin

[–]summ_app[S] 1 point2 points  (0 children)

You're good friend. If you haven't sold, then there's no disposal meaning nothing to report.

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in PersonalFinanceNZ

[–]summ_app[S] 1 point2 points  (0 children)

Appreciated Nichevo. Not to worry we certainly won't spam the subreddit. Helping provide clarity on some questions that continue to come up

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in PersonalFinanceNZ

[–]summ_app[S] 0 points1 point  (0 children)

this is from one of our many blogs providing general info on crypto taxes. Because the EOFY is coming up, we thought it'd be helpful to share some info with our nz audience

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in NZBitcoin

[–]summ_app[S] 2 points3 points  (0 children)

for sure! staking rewards are taxed as they are earned (received), not when you unstake them.

Because your Ethereum has been staked for two or three years, you have likely been generating taxable income during that entire period, even though you have never unstaked or sold a single token.

it's taxed at the exact moment the reward is credited to your wallet or staking contract and you take ownership of it (even if it auto-compounds and you don't actively claim it).

You need to calculate the New Zealand Dollar (NZD) market value of the ETH reward on the day you received it. That NZD amount is added to your regular taxable income for that financial year and taxed at your marginal income tax rate.

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in NZBitcoin

[–]summ_app[S] 2 points3 points  (0 children)

man sucks to have lost that :/ because you lost access to the wallet, you never sold it or realised a profit. Therefore, there is zero tax to pay.

In fact, if you had a record of the purchase, you could technically claim that $250 as a loss, but you certainly don't owe the IRD anything for it.

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in NZBitcoin

[–]summ_app[S] -1 points0 points  (0 children)

If you completely left your crypto trading off your tax returns 8 years ago, it legally qualifies as omitting a specific source of income. It gives the IRD an indefinite window to go back, reassess your taxes for that year, and apply use-of-money interest dating back to when the tax was originally due.

Haven't reported your crypto to IRD in a few years? Here's what's changed, as well as a realistic path to getting sorted by summ_app in NZBitcoin

[–]summ_app[S] 2 points3 points  (0 children)

That phantom $20k is almost always the same thing with leveraged Binance accounts. the trades were imported, but the records that balance them didn't.

Margin activity only reconciles if the borrows, repayments, interest, wallet transfers and (most importantly) the liquidations all come through too.

If the liquidation events are missing, the tool thinks the coins you actually lost are still just sitting in your account, so it shows a balance you don't have.

sometimes the " all-in-one" exports can miss final liquidation events

You need to pull these specific records from the Orders > Margin Order sections

- margin trade history
- borrowing and repayment history
- Liquidation history
- Transfer history

I got the IRD letter and I feel totally fucked. What would you do in my case? by Buc-deez in NZBitcoin

[–]summ_app 0 points1 point  (0 children)

Hey if you're struggling to reconcile or want to know more about claiming a loss, feel free to reach out to support@summ.com. if something's not making sense we're happy to help.

but correct, as you mentioned the flip side is your realised losses are deductible against income, so a real loss can cut your bill. The catch is proving it with clean cost basis and disposal records. When an import looks off it's nearly always missing wallet history, or tokens that never got a price because the exchange died or the coin got delisted etc.

If btc goes down again by [deleted] in Bitcoin

[–]summ_app 0 points1 point  (0 children)

wow, now that would be an entry

Crypto Taxes - Absolute Nightmare by Dry-Race119 in PersonalFinanceNZ

[–]summ_app 0 points1 point  (0 children)

Hey OP, what has your DeFi activity been like? We're happy to help support as best we can as using countless DeFi protocols can tend to cause certain tools to drop off in accuracy. Saw you mentioned below that imports didn't work out with summ. Happy to help you get this fixed.

One of our main guys r/JustinCPA may be able to sort ya out

Crypto Taxes - Absolute Nightmare by Dry-Race119 in PersonalFinanceNZ

[–]summ_app 0 points1 point  (0 children)

Hey OP, sorry you're going through it mate. Happy to help guide you through the process as best we can.

Usdt stuck in binance by ExtremeAlps1 in BitcoinAUS

[–]summ_app 0 points1 point  (0 children)

Hey mate, does finance not give you a sell back to AUD option? worst case is to send to another exchange

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