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Cryptocurrency mega-thread

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Gigantic said:
Australian corporate tax rate is 30%, about 25% if you're under the threshold, which is the case for small and medium businesses. There's also division 7A considerations (https://www.ato.gov.au/business/private-company-benefits---division-7a-dividends/)

I'm very curious to know how you would go about it, because to me it sounds a bit more complicated to set up for an average joe.

Assuming 15% might have something to do with setting up a self managed super fund as super paid by a business into a super account is taxed at 15%.

The SMSF strategy is one that I have heard used effectively but it does mean you can't access it right away.

Another one is making voluntary super contributions to reduce taxable income for a given year, but there's caps on that.
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yeah I'm not entirely sure, second hand info via my brother. She seems to think she can reduce the tax close to zero legally though so I'll just have to get her to explain it to me.
 
bzparkes said:
yeah I'm not entirely sure, second hand info via my brother. She seems to think she can reduce the tax close to zero legally though so I'll just have to get her to explain it to me.
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Share it so we can book mark it for when BTC gets to $1mil in 2025. Tnx
 
Gigantic said:
Australian corporate tax rate is 30%, about 25% if you're under the threshold, which is the case for small and medium businesses. There's also division 7A considerations (https://www.ato.gov.au/business/private-company-benefits---division-7a-dividends/)

I'm very curious to know how you would go about it, because to me it sounds a bit more complicated to set up for an average joe.

Assuming 15% might have something to do with setting up a self managed super fund as super paid by a business into a super account is taxed at 15%.

The SMSF strategy is one that I have heard used effectively but it does mean you can't access it right away.

Another one is making voluntary super contributions to reduce taxable income for a given year, but there's caps on that.
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Can confirm, company tax is 30%.

Also, your major corporations like Google etc... that shift funds off-shore are a totally different setup and scenario to the one being discussed.

There's ways you can reduce your tax burden, but it requires spending some cash to setup correctly, and really depends on the individual situation as to whether the time and cost is even worthwhile.

Family Trusts are the most used vehicle for this, as it allows the income of the trust to be distributed over a number of parties to minimise the tax payable, e.g. yourself, your wife, your (when old enough) children, your grandma, whoever you want really. Generally they'll do so up to the level that meets the low(er) tax thresholds.

It's very difficult as an individual to pay 0 tax on Investment Capital Gains without doing something extremely sketchy AFAIK. Crypto gains are even more likely to attract the attention of auditors if they think you've done something dodgy IMO.

SMSF's are another one, but obviously if you're younger it's not always a particularly helpful option.
 

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XRP starting to join the party over the last few days. Brian Armstrong coming out in support of Ripple a week ago definitely helped, and I heard a rumour an exchange relisted them (not sure which one)? Oh, and wrapped XRP will be available to use on the Ethereum network in December.
 
BACCS said:
XRP starting to join the party over the last few days. Brian Armstrong coming out in support of Ripple a week ago definitely helped, and I heard a rumour an exchange relisted them (not sure which one)? Oh, and wrapped XRP will be available to use on the Ethereum network in December.
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I noticed on swyftx they dropped the ripple name, it's just called XRP now
 
owen87 said:
Can confirm, company tax is 30%.

Also, your major corporations like Google etc... that shift funds off-shore are a totally different setup and scenario to the one being discussed.

There's ways you can reduce your tax burden, but it requires spending some cash to setup correctly, and really depends on the individual situation as to whether the time and cost is even worthwhile.

Family Trusts are the most used vehicle for this, as it allows the income of the trust to be distributed over a number of parties to minimise the tax payable, e.g. yourself, your wife, your (when old enough) children, your grandma, whoever you want really. Generally they'll do so up to the level that meets the low(er) tax thresholds.

It's very difficult as an individual to pay 0 tax on Investment Capital Gains without doing something extremely sketchy AFAIK. Crypto gains are even more likely to attract the attention of auditors if they think you've done something dodgy IMO.

SMSF's are another one, but obviously if you're younger it's not always a particularly helpful option.
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Yeah I'll have to talk with her directly to get a better understanding. Second hand info from my brother who'd had a few drinks..

Gigantic said:
Also for what it's worth, companies set up to trade shares with only a single shareholder and only a dozen trades has been cracked down upon by the tax office before.
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Yeah that one did occur to me. I have a few mates interested in doing regular investments so I was thinking along the lines of setting up an investment company and having them as shareholders also, then paying out dividends to all of us on a monthly basis. Something to look into anyway.
 
A crypto thread that turns into a deep discussion about tax avoidance is quintessential for this space.



You make 10x from an asset class and **** you, pay your ****ing share you selfish prick. Not directed at any individual, just a general sentiment.
 
beez said:
A crypto thread that turns into a deep discussion about tax avoidance is quintessential for this space.



You make 10x from an asset class and fu** you, pay your ******* share you selfish prick. Not directed at any individual, just a general sentiment.
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Fair call but I don't think anyone's suggesting tax avoidance in this thread.

Lots of people rock up to their tax agent or tax lawyers asking how they can reduce how much tax they pay. Whether you're against that or not, I don't see how this is any different.
 
bzparkes said:
I'm no accountant/lawyer but the loophole revolves around setting yourself up as a company (costs $1) and making yourself the sole shareholder. You then pay yourself dividends instead of an income at the corporate tax rate of 15%, which can be then further reduced to zero.
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Doesn't work for shares/crypto already in your name and not in a company name.

As soon as you transfer the crypto from your name to XYZ PTY LTD it triggers a capital gains event.

This is why speaking to an actual certified accountant is important and not regurgitating a version of third hand information 'my brother's partner told him and then he told me'.

If he has realised a $300k profit (which he hasn't yet) spending $5k on an accountant is the best money he will ever spend.
 
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beez said:
A crypto thread that turns into a deep discussion about tax avoidance is quintessential for this space.



You make 10x from an asset class and fu** you, pay your ******* share you selfish prick. Not directed at any individual, just a general sentiment.
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I don't mind paying taxes.

I do however mind paying 49% taxes on gains over a certain amount when there's perfectly legal means to not pay those taxes.

Especially considering the government warns me not to dabble in crypto because it's too risky, then tells me I need to pay them up to half my profits lol.

No thanks.
 
ash_1050 said:
Doesn't work for shares/crypto already in your name and not in a company name.

As soon as you transfer the crypto from your name to XYZ PTY LTD it triggers a capital gains event.

This is why speaking to an actual certified accountant is important and not regurgitating a version of third hand information 'my brother's partner told him and then he told me'.

If he has realised a $300k profit (which he hasn't yet) spending $5k on an accountant is the best money he will ever spend.
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Nah he hasn't, waiting for more information. Also advised him to speak to an accountant regarding this because I'm not one, so no need to worry.

She used to do this for a job for large corporations in Sydney so she knows the laws surrounding this. I wouldn't be doing anything unless I was damn sure it was perfectly legal.

Not keen on risking gaol time for some extra money.
 

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beez said:
A crypto thread that turns into a deep discussion about tax avoidance is quintessential for this space.



You make 10x from an asset class and fu** you, pay your ******* share you selfish prick. Not directed at any individual, just a general sentiment.
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Anyone who doesn't minimise their taxes via all practicable legal means is doing it wrong.
 
owen87 said:
Anyone who doesn't minimise their taxes via all practicable legal means is doing it wrong.
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Haha yeah, I mean, we all claim everything we can on a tax return already, right? Nothing selfish about paying 45%+ on taxes when you pay less legally.

If you're straight up doing illegal shit to avoid it then yeah, **** you too lol.
 
bzparkes said:
Haha yeah, I mean, we all claim everything we can on a tax return already, right? Nothing selfish about paying 45%+ on taxes when you pay less legally.

If you're straight up doing illegal sh*t to avoid it then yeah, fu** you too lol.
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Most people using tax minimisation strategies are the small fish doing it well within legal bounds, it's the ultra-wealthy who are able to avoid tax on a fairly grand scale.

A one-off crypto windfall for an individual isn't exactly doing much to pad out the national tax income
 

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Starting to worry. I repeated the same steps, bought $200 worth of binance, transferred it from coinspot to my binance chain wallet, got a confirmation email... think it was binance smart something or other to binance smart chain wallet. Still haven't received my 0.25 BNB yet. But it's only been about 5 minutes. Still concerned though. Ffs. it was 100% the right address, and i know it wasn't the wrong network because i'd get an "invalid" message.
 
Coolangatta said:
Starting to worry. I repeated the same steps, bought $200 worth of binance, transferred it from coinspot to my binance chain wallet, got a confirmation email... think it was binance smart something or other to binance smart chain wallet. Still haven't received my 0.25 BNB yet. But it's only been about 5 minutes. Still concerned though. Ffs.
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Normally pops up instantly for me in Metamask with BNB transfers from Coinspot (after clicking the confirmation email link). Might be worth getting a Metmask account instead, which uses a few different smart chains.
 
BACCS said:
Normally pops up instantly for me in Metamask with BNB transfers from Coinspot (after clicking the confirmation email link). Might be worth getting a Metmask account instead, which uses a few different smart chains.
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I just read it can take up to 30 minutes sometimes. Hopefully, it'll come through but I'm not always one for optimism.
 

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