Title: Lost, Stolen or Hacked Crypto - Tax Implications Post by: zasad@ on August 10, 2022, 06:37:36 PM Very interesting discussion
https://cryptotaxcalculator.io/blog/lost-stolen-hacked-crypto-tax/ https://twitter.com/CryptoTaxHQ/status/1554950976888795137 https://twitter.com/CryptoTaxHQ/status/1554951037467119616 "In Australia, the ATO has a list of guidelines that need to be met for a crypto asset to be considered ‘stolen’ or ‘hacked’, which if met may be able to be claimed as a capital loss (3/6)" https://twitter.com/CryptoTaxHQ/status/1554951077560479745 "In the US, unfortunately, stolen or hacked crypto cannot usually be claimed as a capital loss. We recommend talking to a local tax professional to discuss your options. (4/6)" https://twitter.com/CryptoTaxHQ/status/1554951113556004864 "In the UK, you may have to file a Negligible Value Claim in order to claim any stolen or hacked assets as a capital loss. (5/6)" Title: Re: Lost, Stolen or Hacked Crypto - Tax Implications Post by: Poker Player on August 11, 2022, 01:41:23 PM Very interesting discussion Indeed. The problem lawmakers face is that it is very easy for someone to say they have lost their Bitcoin private keys , for example, and there is no way to check whether they are telling the truth or lying and have them stored in a safe a few feet underground. If the legislation allows the simple claim that you have lost them to be counted as a capital loss, it gives a lot of scope for the declarants to cheat. On the other hand, if it is too restrictive, it can be unfair to those who have really lost the keys and have no way of proving it other than their word. Title: Re: Lost, Stolen or Hacked Crypto - Tax Implications Post by: SFR10 on August 12, 2022, 04:37:59 PM @zasad@
It's indeed interesting, but it seems that the following part might no longer be the case in Australia:
Title: Re: Lost, Stolen or Hacked Crypto - Tax Implications Post by: Anonohmon on August 12, 2022, 07:31:01 PM Very interesting discussion Indeed. The problem lawmakers face is that it is very easy for someone to say they have lost their Bitcoin private keys , for example, and there is no way to check whether they are telling the truth or lying and have them stored in a safe a few feet underground. If the legislation allows the simple claim that you have lost them to be counted as a capital loss, it gives a lot of scope for the declarants to cheat. On the other hand, if it is too restrictive, it can be unfair to those who have really lost the keys and have no way of proving it other than their word. This is why the US should simply do what most other nations have done and only charge taxes for capital gains when you actually cash out. Then there is no incentive for liars to lie. And it doesnt unfairly punish those people who are just swapping coins to move them to different wallets. Title: Re: Lost, Stolen or Hacked Crypto - Tax Implications Post by: zasad@ on August 13, 2022, 08:08:00 PM Very interesting discussion Indeed. The problem lawmakers face is that it is very easy for someone to say they have lost their Bitcoin private keys , for example, and there is no way to check whether they are telling the truth or lying and have them stored in a safe a few feet underground. If the legislation allows the simple claim that you have lost them to be counted as a capital loss, it gives a lot of scope for the declarants to cheat. On the other hand, if it is too restrictive, it can be unfair to those who have really lost the keys and have no way of proving it other than their word. This is why the US should simply do what most other nations have done and only charge taxes for capital gains when you actually cash out. Then there is no incentive for liars to lie. And it doesnt unfairly punish those people who are just swapping coins to move them to different wallets. Capital gains tax also has many disadvantages in the cryptocurrency market, because the price of coins can grow 20-30 times or decrease in a year. And tax deductions for capital reduction are limited. Title: Re: Lost, Stolen or Hacked Crypto - Tax Implications Post by: Findingnemo on August 26, 2022, 07:03:37 PM Very interesting discussion Indeed. The problem lawmakers face is that it is very easy for someone to say they have lost their Bitcoin private keys , for example, and there is no way to check whether they are telling the truth or lying and have them stored in a safe a few feet underground. If the legislation allows the simple claim that you have lost them to be counted as a capital loss, it gives a lot of scope for the declarants to cheat. On the other hand, if it is too restrictive, it can be unfair to those who have really lost the keys and have no way of proving it other than their word. This is why the US should simply do what most other nations have done and only charge taxes for capital gains when you actually cash out. Then there is no incentive for liars to lie. And it doesnt unfairly punish those people who are just swapping coins to move them to different wallets. We can't make the laws on our own, if we do then we will be considered as criminals who violated the laws of government so we have to ise the power of choosing the right person as the leader. |