How are cryptocurrencies treated for tax purposes?
With the recent boom of cryptocurrency in the past year investors are unsure on whether they have to pay taxes on their gains. It is very important to consider any tax consequences that may arise.
IRD is currently underway on issuing public guidance regarding the tax treatment of cryptocurrencies and have mentioned that cryptocurrencies it may treat cryptocurrencies similar to proceeds from the disposal of gold, as with any personal property, would in most instances be deemed income if acquired “for the dominant purpose of disposal”.
Cost related to the purchase and sale of the cryptocurrencies will be deductible.
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