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15 Feb 2021

Hi - Back in early 2013 I mined some Dogecoin, into a personal wallet, then moved it to an online exchange for storage. Unfortunatly the exchange was hacked and closed down (BTER), the crypto having no value at the time I took it as a lesson learned and forgot all about it (and lost my old wallet details). Fast forward to 2021, Dogecoin shot up in value I went about researching what happened to BTER more in-depth. Turns out it became Gate.io and old accounts were partially recovered over to that service. After the lengthy authentication pocess they gifted me some Dogecoin a few days ago.

My question is, I lost my old coin, then was gifted back some coin years later, would I take that as the value of the coins when I recieved them from the new exchange and now count capital gains / losses based on the gift value? I have sinced moved these coins to a reputable Australian exchange.

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1,323 views
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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response15 Feb 2021

Hi @webuser55378,

When you lost your cryptocurrency, you would have claimed a capital loss for the disposal of the assets.

You have now been gifted different cryptocurrency, albeit in the same form of cryptocurrency. Because you have received cryptocurrency with no cost to you, your first element of the cost base is replaced with the market value at the time of acquisition. You'll use this to form your cost base of these new coins for when you may dispose of them.

You can read about the loss of cryptocurrency and the market value substitution rule on our website.

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response15 Feb 2021

Hi @webuser55378,

When you lost your cryptocurrency, you would have claimed a capital loss for the disposal of the assets.

You have now been gifted different cryptocurrency, albeit in the same form of cryptocurrency. Because you have received cryptocurrency with no cost to you, your first element of the cost base is replaced with the market value at the time of acquisition. You'll use this to form your cost base of these new coins for when you may dispose of them.

You can read about the loss of cryptocurrency and the market value substitution rule on our website.

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Lost Crypto gifted back to me years later, what capital gains or loss would I use? | ATO Community