Hi there,
This document: https://iorder.com.au/publication/publicationdetails.aspx?pid=75362-04.2021 says that if I transfer my BTC off exchange to my private wallet, any network fee I paid is considered a disposal and needs to be reported. Unfortuantely it doesn't give an example of what that means.
In my situation, all I've done is buy BTC and transfer it off the exchange to a private wallet, paying a fee to do this each time. I haven't performed any other actions.
This post and in particular the response from treefairy seems to be getting at the issue but its dated from last year and I'm not sure how to interpret it: https://community.ato.gov.au/t5/Cryptocurrency/Capital-gains-on-withdrawal-fees/m-p/107665/thread-id/2455
Let's use their example: "1.00 ETH is withdrawn from the exchange. 0.99 ETH ends up in the wallet. 0.01 ETH @ $200 is the withdrawal fee i.e. $2." In this example, the original 1 ETH was bought @ $100 AUD .
Let's also assume that's all we did. There are no further transfers or disposals, to keep this to my situation.
So, they transferred 1 ETH but lost 0.01 ETH in the transfer, so 0.99 ETH is in their private wallet. The AUD value of ETH at the time of transfer was $200 (presumably you have to give an estimate of the AUD value at the time the network transfer was done, correct me if I'm wrong).
Is this disposal of 0.01 ETH to procure the network transfer a capital gain?
That is, do I have to acknowledge that the AUD price went from $100 -> $200 when I paid the network fee of 0.1 ETH?
Or can I treat this a some kind of capital loss related to the cost of managing my asset? (It's good practice if you are a long term holder to move your holdings off the exchange and into a private wallet.)
Thanks,
Daniel
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