What does IRD think crypto is? Not play money. For most people, selling, trading, or swapping crypto can create taxable income — just like any other asset.
When do you owe tax?
When you sell for profit, swap one coin for another, or earn staking rewards. There is no simple “hold for a year and pay nothing” rule in New Zealand. IRD looks at what you did and how often.
What records must you keep?
- Date and NZ dollar value when you bought and sold.
- Exchange fees and transfer costs.
- CSV exports from exchanges — screenshots are not enough.
How do people get caught out?
Swapping tokens counts as selling. Buying a laptop with Bitcoin counts as selling. “I never cashed out to NZD” does not remove the tax question.
How do you fix a messy history?
Start now. Sort monthly, not in March. An accountant can work with clean CSVs. They cannot magic away missing data from 2021.
Where do you find official rules?
IRD’s website is dry but correct. Read it before Reddit threads. If you are lost, pay an accountant once — cheaper than a penalty later.
