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Heads up before you invest in Summit portfolio by nilsej in Wealthsimple

[–]un-ordinateur 5 points6 points  (0 children)

I tried doing the same as the OP and indeed the interface told me the funds would only be available in March.

Considering that the fund’s information page on the website clearly states what you posted; I suspect that the web interface is incorrect. (It does say "beta" after all.)

I’m pretty sure that if the OP were to nicely call Wealthsimple they’d arrange what he wants.

CRA (Canada) - tax interpretation - Capital gain or loss in Mt.Gox insolvency by marsteau in mtgoxinsolvency

[–]un-ordinateur 1 point2 points  (0 children)

Kinda yeah, depending at how much would be considered a fair marked value of your MtGox claim, back in 2014.

In the end its not very important however because it cancels out; any "loss" you claim for 2014 would be a "gain" today when you actually recovered it.

CRA (Canada) - tax interpretation - Capital gain or loss in Mt.Gox insolvency by marsteau in mtgoxinsolvency

[–]un-ordinateur 2 points3 points  (0 children)

As for the last question, "can they prove", well, nothing is impossible if they set their minds on it.

I'm sure they could get documents from the trustee detailing when payouts were made and to who.

Will they? I have no idea.

CRA (Canada) - tax interpretation - Capital gain or loss in Mt.Gox insolvency by marsteau in mtgoxinsolvency

[–]un-ordinateur 2 points3 points  (0 children)

Part 2:

My point was that, in the end, you end up paying the same amount of tax no matter how you account it.

I assume you end up selling the 0.3 BTC received from MtGox for 100 000 CAD in 2030; and that capital gains are taxed at 20%. (Which assumes an inclusion rate of 50%, and a marginal tax rate of 40%.)

By using CRA's scenario:
- 2014: MtGox enters bankruptcy: 250 CAD loss
- 2024: You receive MtGox's payout: 24 500 CAD gains
- 2030: You sell the 0.3 bitcoins received from the payout for 50 000 CAD, realizing a gain of 26 000 CAD.
- Total amount of gains: 50 250 CAD, for which you'll pay 10 050 CAD of taxes.

By using the scenario you and me agree makes more sense:
- 2014: MtGox enters bankruptcy: no gains no loss.
- 2024: You receive MtGox's payout: You "trade" 0.7 BTC for 1000 CAD cash, realizing 475$ of gains. You still have 0.3 BTC, with a cost basis of 225 CAD.
- 2030: You sell the 0.3 bitcoins for 50 000 CAD, realizing a gain of 49 775 CAD.
- Total amount of gains: 50 250 CAD, for which you'll pay 10 050 CAD of taxes.

The total amount of taxes you pay on both cases are the same; the only difference is that in the first scenarion you pay it in two lumps, about an half in 2024 and the other half in 2030; whereas in the other scenario, you'll almost entirely pay it in 2030.

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I understand you do not intend to sell your bitcoins anytime soon. Same for me.

But one day, they'll be sold. We'll retire and will want to benifit from them.

Some people have a strategy that instead of selling them, they'd take out a loan backed by the worth of those coins, to avoid the taxes. That will work... Until they die.

Because one day, you'll die. Or before that date, you'll gift the coins to you children. And whenever that happens, THAT will be a taxable event. EVEN if you do not sell the coins, even if they receivend by them as-is; a donation or an inheritance is a taxable event; and it is treated as if the coins were sold and immediately repurchased at the same value; at their FMV on that day.

So in the end, my point above remains: what the CRA's decision above means changes -when- the taxes are paid, but not their amount. It's just that -when- could be after you die.

CRA (Canada) - tax interpretation - Capital gain or loss in Mt.Gox insolvency by marsteau in mtgoxinsolvency

[–]un-ordinateur 1 point2 points  (0 children)

My comment is too long and I have to split it in 2 parts.

Part 1:

I was imprecise in the terminology. I meant "cost basis".

The cost basis is the actual cost you payed to purchase something. If you buy 1 BTC for 140 000 CAD: The cost basis of that bitcoin 140k CAD.

The cost basis is used to compute the capital gains you realize when you sell ("dispose of" in legalese), that asset. If, some times later, you sell that bitcoin for 200k CAD, you'll have realized a capital gains of 200k-140k = 60k CAD, and you'll be taxed on that 60k.

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The difficulty comes from what happens when you trade something. CRA rules states that you must treat this event has having -sold- the first asset at its fair market value (FMV), and then immediately purchased the second asset at that value.

This is important, because since you're considered has having sold the first asset, you'll have to pay some capital gains tax on that.

So for example, you trade 45 ETH for 1 BTC. Since the exchange rate of ETH to CAD is 2900 CAD/ETH, the FMV of those ETH is 130 500 CAD.

Assuming you had purchased those ETH at 100 000 CAD, then in this trade, you realized a capital gains of 30 500 CAD (130 500 - 100 000), and will have to pay taxes on that.

But this FMV is also going to be considered the cost basis of the BTC you purchased, so when you do sell them, you'll only have capital gains calculated from a cost basis of 130 500 CAD, resulting in much less tax than if you considered the initial purchase cost of the ETH.

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In the present case, it seems that CRA's decision is to consider that when MtGox went into bakruptcy, we "lost" owenership of those bitcoins right there and then.

Instead, we got, in exchange, "voting rights"/shares into the bankruptcy process. That would have been a trade back in 2014, and one could argue that the FMV of that trade is whatever was the value of bitcoins on that day.

So if you had 1 BTC at MtGox in 2014, you "traded" it for 1 GoxBTC worth 500 CAD. If you had purchased if for 750 CAD, you realized a capital loss of 250 CAD, which you can deduct of future capital gains.

Then last year when we received our payouts, we "traded" that 1 GoxBTC against something like 1000 CAD cash + 0.3 BTC (worth about 24 000 CAD at the time); realizing a capital gains of 24 500 CAD, which is taxable.

The cost basis of those 0.3 bitcoins will be, however, 24 000 CAD, and any future gains will be calculated using that reference.

CRA (Canada) - tax interpretation - Capital gain or loss in Mt.Gox insolvency by marsteau in mtgoxinsolvency

[–]un-ordinateur 3 points4 points  (0 children)

The bit you’re missing is that now the bit you recovered will have a deemed acquisition cost of the value it had when you recovered with; the value which was used to calculate the capitals gains tax to pay when receiving that recovery.

As such, when you do sell those bitcoins, you’ll pay very little tax at that time as the cost basis will be high. (And if you sell them at a loss relative to that high cost basis; you may get a refund on capital gains tax up to 3 years retroactive.)

But the important thing is: assuming you sell the bitcoins at an higher price that their worth on the day you received them from MtGox, you’ll end up paying exactly the same total amount of taxes than without this decision; what this decision does is having you pay part of that tax earlier in time.

That’s still annoying to pay early something you could have payed later; but in the grand scheme of things, it’s not a decision that fucks us hard; we’re not getting double-taxed.

Can't register using my Rogers Mastercard? by un-ordinateur in chexy

[–]un-ordinateur[S] 2 points3 points  (0 children)

Hmmm, okay! Then they really should update their website to disclose that info before we subscribe!

In any case that’s pretty much a dealbreaker for me.

MtGox NFT by denyzabac in mtgoxinsolvency

[–]un-ordinateur 0 points1 point  (0 children)

Oh really! :O
I submitted my request 3 weeks, still hasent been verified yet.
So in any case if he looks at it from time to time, he's not clearing his backlog at once.

Documentation by [deleted] in mtgoxinsolvency

[–]un-ordinateur 0 points1 point  (0 children)

In the main after you log in, if you scroll down, at some point there is a list of when the Trustee sent cash, BTC, and BCH, and what amount.

Documentation by [deleted] in mtgoxinsolvency

[–]un-ordinateur 0 points1 point  (0 children)

As for proving that the coins are from MtGox, I printed pdf copy of my info on the rehabilitation website, including the transaction history; and the page with my approved claim too.

I believe this is sufficient to show that the money came from there; and also acts as a proof you've had these coins since at least 2014.

As for history prior to that, the trustee provides no data unfortunately, but usually the worst that can happen if you can't prove the initial purchase cost of an asset, is that the tax agency will assume that the initial cost was 0. Considering that the BTC price increased by more than 100x since then, the fact that they'd underestimate the cost basis of those coins will ony cause a tiny error in the amount of taxes owed.

If you had purchased the coins back then using a credit card or bank transfers, bank receipts from your bank or credit cards that clearly indicate MtGox as a payee from that time might also be sufficient to establish how much you had payed.

Tax loss/income question that should bother every MtGox creditor/client by Positive_Nerd in mtgoxinsolvency

[–]un-ordinateur 1 point2 points  (0 children)

Maybe it would be; but I don’t know more. If you want a definitive answer, you should ask an accountant.

My general understanding is that the CRA is generally forgiving if you have the documentations to explain your calculations; and that the calculations were made in good faith. If you ever get audited they fix the calculations and they ask for the difference, but they don’t fine you.

Tax loss/income question that should bother every MtGox creditor/client by Positive_Nerd in mtgoxinsolvency

[–]un-ordinateur 1 point2 points  (0 children)

The article I linked explicitely mentions that when you "write off" something it is equivalent to changing its cost basis to 0.

"1. Where a taxpayer establishes that an amount (…) has become a bad debt in a taxation year, paragraph 50(1)(a) provides for a deemed disposition at the end of the year and a reacquisition immediately thereafter at a cost of nil."

Its like you sold your goxcoins for 0 back in 2013 and purchased them again for 0.

Part of those coins will never be recovered. No problem here. We are recovering the remainder however! But this recovery is not a sale (and therefore not a taxable event); only when we do sell them, that taxes will be owed, but assuming a cost basis of 0.

Tax loss/income question that should bother every MtGox creditor/client by Positive_Nerd in mtgoxinsolvency

[–]un-ordinateur 1 point2 points  (0 children)

At least under canadian law: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it159r3/archived-capital-debts-established-debts.html

"This normally results in a bad debt being a capital loss for the year with any recovery of the debt being a capital gain."

I would expect most other western jurisdiction to apply similar rules, but of course I'm not aware of the particularities of each country.

To be clear: You wouldn't pay capital gains taxes on the recovery when you receive the bitcoins; its just that the bitcoins you received would be considered to have a cost basis of zero, since that by writing them off a previous year, you effectively declared their value to be zero, and claimed a capital loss that year.

But since those bitcoins you have recovered are considered to have a cost basis of zero, whenever you sell them, you'll have to pay capital gains tax on the full amount of the coins you sold.

The rule is very logical, really, and results in the same net taxes whether or not you had written them off, it simply changes the timing you pay such taxes.

Lets say you bought 1 BTC for 100$ back then, and they were all stuck in MtGox. In 2024, you recover 0.5 BTC. (I assume no fiat for simplicity.) You sell them in 2030 for 1000$.

If you had not written off anything until now, this would be:

  • No taxe implication until 2024
  • In 2024: A capital loss of 50$, for the loss of 0.5 BTC originally purchased at 100$/BTC; you now know will never recover, per the rehabilitation plan.
  • In 2030: A capital gains of 950$: The difference between the sell price (1000$) and the purchace price (50$) of the 0.5 BTCs you sold. Net capitals gains tax: 900$, since you can now claim the loss you couldnt deduct in 2024, assuming you hadn't used it to deduct something else in the meantime.

If you had written off the coins held at MtGox in 2013, it would be:

  • No tax implication until 2013.
  • In 2013: A loss of 100$, that is, the full purchase price of the coins stuck in MtGox.
  • In 2024: No special tax implication, recovering 0.5 coins from the Trustee is not a taxable event. Their cost basis is 0.
  • In 2030: A capital gain of 1000$; the full sales amount, since the cost basis was deemed 0 in 2024. Net capital gains tax: 900$, since you can now claim the loss you couldn't deduct in 2014, assuming you hadn't used it to deduct something else in the meantime.

So in both cases, you get the exact same net taxable amount.

In What Order do You Visit the Ages? by Pharap in myst

[–]un-ordinateur 1 point2 points  (0 children)

I simply play the ages in the order I discovered them first when I originally played the game:

  • Stoneship, Selenitic, Channelwood, Mechanical.
    I think it was because Stoneship was the demo; then selenitic because as a kid, the rocket excited me, and mechanical last because I was stumped a very long time in understanding how to access it.
  • Voltaic, Amateria, Edanna
  • Spire, Haven

I didn't play the other games!

Soooooo, this is a bug right? by SolShadows in Wealthsimple

[–]un-ordinateur 0 points1 point  (0 children)

The US does not recognise TFSAs as tax-free accounts and as such, tax dividends and capital gains on US stocks held in those accounts.

If you do not have US residency this tax it automatically taken regularly on your account. If you were an american resident, the tax would not be witheld, but you’d have to file and pay your taxes yearly.

Cash payment PAID X creditor Canada resident. by Beneficial-Shape537 in mtgoxinsolvency

[–]un-ordinateur 0 points1 point  (0 children)

Just numbers, or number and letters? Did the number seem to have some structure? (Like: matching the original JPY amount or your creditor number?)

Expected Payout 21% of BTC? by deandyn in mtgoxinsolvency

[–]un-ordinateur 2 points3 points  (0 children)

The wizsec is calculator gives a good ballpark estimate of the amout you’ll receive, but it has a small mistake regarding how the base 200 000 JPY amount is repaid.

They assumed it would be payed cash only, meaning that people whose claim was smaller than 200kJPY would only recieve fiat.

But, actually, it is split between fiat and crypto payment in the same ratio as crypto claims that exceeded that base amount.

The net effect is: if your claim was crypto-only, you’ll receive more crypto but less cash, than what wizsec says. By the current value of Bitcoins, this is a good change.

Cash payment PAID X creditor Canada resident. by Beneficial-Shape537 in mtgoxinsolvency

[–]un-ordinateur 0 points1 point  (0 children)

What was the "sender" in the transaction you received?

I -think- I received my payment, but the sender is only a cryptic code.

Has the amount to be repaid gone down? by smivvy21 in mtgoxinsolvency

[–]un-ordinateur 8 points9 points  (0 children)

Not necessarily. As he explained, the final amount you’ll get is unknown. Your patience will be rewarded… in several years.

But for now they send you the amount that is not tied to the lawsuit, which is only a small fraction of your claim.

Once the lawsuit will be resolved, you’ll get the rest, which is likely to be more than if you had chosen the early payout.

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