Cryptocurrency Q&A
Is STT an allowable expense?
Is STT an allowable expense?
Daniele
Sat Aug 10 2024
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7 answers
1490
Excuse me, could you please clarify if STT is considered an allowable expense under the current tax regulations? I'm interested in understanding the specifics of how STT, or security transfer tax, is treated for financial reporting and tax purposes. It would be greatly appreciated if you could provide some insights into whether STT can be deducted from taxable income or if there are any specific conditions that need to be met for it to be considered an allowable expense. Thank you in advance for your help.
7 answers
KatanaGlory
Mon Aug 12 2024
The taxation of cryptocurrency profits differs significantly between investors and traders.
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Silvia
Mon Aug 12 2024
For investors who categorize their profits as Income from Capital Gains (STCG or LTCG), they are not eligible to deduct Securities Transaction Tax (STT) as an expense.
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CryptoAlly
Mon Aug 12 2024
This is because STT is generally considered a tax on the transaction itself, rather than a cost associated with generating the profit.
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emma_grayson_journalist
Mon Aug 12 2024
Conversely, traders who report their cryptocurrency earnings as Business Income can include STT paid as a deductible expense.
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EchoSeeker
Sun Aug 11 2024
This allows them to offset the tax burden by claiming STT as a cost of doing business.
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