WHAT TAXES DO I PAY ON CRYPTO GAINS ?

WHAT TAXES DO I PAY ON CRYPTO GAINS ?

Normally, for the majority of people who make money from buying and selling crypto currencies such as bitcoins or Ethereum, the gains on same are subject to capital gains tax.

It is best explained by an example below:

For example:

On 27th May 2022, Jim Smith sells 100,000 Dogecoins for €10,000 euros which he bought in 2019 for €5,000. He also had a loss from selling bank shares in 2009 of €2,500.

2022 CGT Computation 2022
Sales proceeds                                                10,000
Cost of purchase                                               5,000
Chargeable gain                                                5,000
Allowable losses forward from 2009           (2,500)
Annual personal exemption                           (1,270)
Net chargeable gain                                           1,230

CGT due of                                                          €406

This CGT is due for payment by Jim to revenue by the 15th December 2022

If the gain was made in December 2022, the CGT is due on the 15th January 2023

The CGT tax return is due for submission to revenue by the 31st October 2023

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie