I attended a study session about taxes on cryptocurrencies!

Hello everyone, BTC! Bitcoin has quickly set a new high, and I couldn’t ride the wave@xi10jun1.

Bitcoin quickly reached its all-time high. Perhaps due to a bit of summer fatigue, I couldn’t ride this trend at all…

Will it break through 400,000 yen like this?

*Continuing from the last time, there is an important notice for paid readers, so please read all the way to the bottom if you can.

*This column is designed so that half of it can be read for free, like a bundle of conscience. Of course, if you read up to the paid portion (updated weekly for 400 yen per month, about 80–100 yen per article), I would be very encouraged!

This Week’s Results (August 4, 2017 to August 10, 2017)

First, as usual, the results. I’ll announce the changes first.

Last week (up to August 4, 2017) assets: 115,230 yen
This week (up to August 10, 2017) assets: 115,724 yen
Change: +506 yen

Alright, a little increase! But since prices have risen to a certain extent, I’ll proceed cautiously from here.

Also, on August 5 I attended a study session on cryptocurrency taxation, where they touched on future Bitcoin forks and Bitcoin Cash as well.

Here is the blog from that time →From Basics: Learning about “Blockchain” and “Cryptocurrencies”. Studied about the accounting and taxation of cryptocurrencies!

So this week I’ll summarize the key points I found important from that study session in bullet points.

From Basics: “Blockchain” and “Cryptocurrency” Business [Accounting and Tax for Cryptocurrencies]

Value-added tax does not apply to buying and selling cryptocurrencies
Most other aspects are not yet clarified (administrative notices, Q&A, tax answers)
The National Tax Agency site’s Tax University has many tax-related studies and results published (and perhaps cryptocurrency too?)
When taxes apply
When selling, under what income tax is it taxed?
As a general rule, miscellaneous income (for side trades)
If trading frequently, it may become business income
If under 200,000 yen, you do not have to file? A common mistake
Depending on other income, you may be required to file
Even if profits came from fraud in cryptocurrency, you still have the filing obligation
Is recognition of exchange gains necessary?
In the United States, there is a dedicated Bitcoin tax filing software
Miscellaneous income does not qualify for loss offset
Miscellaneous loss deductions: not deductible even if deceived by fraud
Cryptocurrency affiliate programs: miscellaneous income
Interest on crypto lending (5%): may not be interest income. Is it miscellaneous income?
Are there taxes on ICOs? It’s not a simple yes/no. Must clarify service content and issues.
Cryptocurrencies themselves do not attract consumption tax.
If recognized as an asset (money), inheritance tax may also apply
Information exchange with foreign tax authorities
CRS (automatic information exchange): as a common reporting standard, cryptocurrencies may eventually be included

Free Summary: Cryptocurrencies Require Continuous Study

Tax authorities, accountants, and tax professionals still cannot definitively determine many aspects of cryptocurrency taxation.

Therefore, it’s necessary to attend such study sessions or obtain the latest information as needed.

Now, for this paid column, I will continue to focus on analysis of future market trends this week as well.

About the Paid Column

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Thank you for your cooperation.

End-of-Section 1: Shopping with Bitcoin!

Actually, on the overseas e-commerce site “FANCY,” you can purchase items with Bitcoin! Shipping costs apply, but you can find stylish items you won’t see in Japan!

I’ve summarized how to use FANCY on this blog, so please refer to it.

→Explanation of how to create a FANCY account, register, set up, and purchase products | Jun, Investor of the New Era
→How to purchase items on FANCY with Bitcoin (BTC) | Jun, Investor of the New Era

End-of-Section 2: How to file taxes for Bitcoin futures trading (BTCFX)?

You must also file taxes properly for BTCFX profits! I’ve written a blog post with what I confirmed by calling the tax office, so please refer to it.

→Filing taxes for Bitcoin futures trading (BTCFX)! Is miscellaneous income fully taxed? Separated assessment? | Jun, Investor of the New Era

Note: Even tax offices and tax accountants may have differing opinions. Also, laws can change, so the filing method may change. Before filing, be sure to check with your nearest tax office or tax professional.

Note: the free content ends here. The rest is detailed analysis and future outlook, so it is paid. If you’d like to read more, or would like to support with a tip, I would be very grateful. Please continue to support me!