NZ Darknet Market Forums

DocSpock

Member

Registered: 2021-09-06

Posts: 4

How are converting crypto to Fiat? Are you paying tax on it?

Basically the title.  Interested to know the best way to get crypto to fiat and if you end up declaring it for tax purposes.
The exchange I've used for small amounts in the past would have all your personal details/IRD to be able to send you the fiat and thus could give that to IRD. 

Cheers.

mrbobdobalina

Member

Registered: 2020-12-13

Posts: 37

Re: How are converting crypto to Fiat? Are you paying tax on it?

Occaisonly you can buy cash with your crypto on the market. Or you could buy drugs with it and then sell them to get the cash. If you dont want cash you might as well just pay the tax or find a buyer willing to trasfer the money to you. Obviously not more than 10k though due to banks having to report suspicious transactions as such.

JoeBlogs

Member

Registered: 2020-09-23

Posts: 19

Re: How are converting crypto to Fiat? Are you paying tax on it?

If you are paying tax on the crypto you've acquired via whatever site, do they (IRD) require account trades/proof of coin value gain, OR do they not care and just tax it?

mastodon

Member

Registered: 2021-09-17

Posts: 6

Re: How are converting crypto to Fiat? Are you paying tax on it?

https://localbitcoins.com/country/NZ.

mrbobdobalina

Member

Registered: 2020-12-13

Posts: 37

Re: How are converting crypto to Fiat? Are you paying tax on it?

If you are paying tax on the crypto you've acquired via whatever site, do they (IRD) require account trades/proof of coin value gain, OR do they not care and just tax it?

If they randomly selected you to audit then yes you would have to show where and when you aquired the crypto, according to IRD it is your responsibility to keep track of records so you can prove how much tax you or they owe. Its a stupid rule though and i wouldnt be surprised if they ditch it sometime soon. You can buy a house or shares in NZ and sell them for a profit and not have to pay capital gains so why should you on crypto.

Could always move to El Salvador and spend it all tax free lol.

mrbobdobalina

Member

Registered: 2020-12-13

Posts: 37

Re: How are converting crypto to Fiat? Are you paying tax on it?

Btw localbitcoins requires KYC so its really no different.

DocSpock

Member

Registered: 2021-09-06

Posts: 4

Re: How are converting crypto to Fiat? Are you paying tax on it?

If they randomly selected you to audit then yes you would have to show where and when you aquired the crypto, according to IRD it is your responsibility to keep track of records so you can prove how much tax you or they owe. Its a stupid rule though and i wouldnt be surprised if they ditch it sometime soon. You can buy a house or shares in NZ and sell them for a profit and not have to pay capital gains so why should you on crypto.

Could always move to El Salvador and spend it all tax free lol.

I would imagine if you've brought in through a local exchange and any records the exchange hand over match what you've paid tax for then no real need to bother with auditing. 

But yeah always a risk. 

No point buying drugs then selling them on as I do that now with weed .
Just always takes quite a long time with my limited contacts and I noticed prices on here are FAR higher than what I currently move for which seemed like an easy way to undercut the market and still make more than I do now. 

The crypto conversion part though just seems a bit too risky for the risk of audit.