Episode 071 min 52 sec
Tax rules and the treatment map
Set your method and classification, decide the unsettled cases, and read the tax treatment map.
Key points
- With auto classification you choose the holding period; South Africa sets no fixed period, so your report states your assumption.
- Your tax positions covers unsettled cases such as airdrops, unmatched withdrawals and token migrations, with each default marked.
- Stated intention records in your own words why you bought and sold; it prints on the audit report and changes no figure.
- Reading the tax treatment map is free; taking your own position is part of Advanced.
- No single factor such as holding period decides capital or revenue; SARS weighs the whole picture.
Chapters
Learn more
- GuideFIFO or specific identification
How SARS cost methods work and why consistency matters.
- GuideCapital or revenue
Work through the intention questions before you set classification.
- GuideHIFO, LIFO and average cost: what SARS allows
Why methods from other countries are not offered for South Africa.
- GlossaryCapital vs revenue
A plain definition of the choice your classification records.
Keep learning
Episode 05
Partitions and their tax effect, 1 min 24 sec, watched
Ring-fence sources into partitions, set each one's treatment, and see what changes.
B3Getting the figures right
Rewards, airdrops and gifts, 1 min 30 sec, watched
Staking rewards, airdrops, forks and gifts each follow their own rule. Here is how to record them.
C2Reports and your data
The audit report, 1 min 21 sec, watched
Choose the sections a reviewer needs, and show how you reached your figures.
Read the transcript
Some crypto tax questions have more than one reasonable answer. Here is where you choose, and how your report records it.
Open Preferences, then Tax rules. Your jurisdiction sets which rules and methods apply. Cost-basis method decides how each disposal draws its cost. In South Africa, FIFO is the method offered. Tax classification sets how sales are treated: revenue as a trader, capital as an investor, or auto, split by holding period. With auto, you choose the holding period in days. South Africa sets no fixed period, so the number is your own assumption, and your report states it.
Your tax positions covers treatments the law does not settle, such as airdrops, withdrawals with no matching deposit and token migrations. Each option marks the default and names the transactions it applies to. Here the airdrop is taken as income. Stated intention records, in your own words, why you bought and sold. It is printed on the audit report and does not change any figure. Save, and your figures follow your choices. The coins held a year or more now show as capital, and the airdrop is income on the revenue side.
The tax treatment map shows how each transaction type is treated and how many of your transactions it covers. Reading it is free. Taking your own position is part of Advanced. Coinfig does not recommend an option. The choice is yours or your practitioner's, and the report states every choice made.
Set the basics. Decide the unsettled cases. Check the treatment map.