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adityasabnis(Initiate)Initiate
27 Aug 2021

Lets say I convert 1000 Aud to 720USDT (today)

At a future date, the exchange rate has changed. (Aud is stronger and my 720USDT can only get me 800AUD)

If, I decide to convert it back to AUD

- Can I claim CGT loss of 200$ ?

Scenario 2:

At a future date, the exchange rate has changed. (Aud is weaker and my 720USDT get me 1200AUD)

If, I decide to convert it back to AUD

- Will i have to pay CGT tax on 200AUD?

Scenario 3:

Same as scenario 1 but I decide to buy a crypto asset instead of coverting to AUD.

- Can I claim CGT loss of 200$ ?

Scenario 4:

Same as scenario 2 but I decide to buy a crypto asset instead of coverting to AUD.

- Will i have to pay CGT tax on 200AUD?

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2 replies
722 views
2 replies

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response30 Aug 2021

Hi @adityasabnis

USDT is a cryptocurrency. This means it's a capital asset. This is the case even if its value is tied to FIAT.

This means your scenarios you've presented are all correct. This assumes, as @spirax has said, that you are an investor, and not a trader.

You can read about the tax treatment of crypto on our website.

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_spirax(Enthusiast)Enthusiast
29 Aug 2021

My understanding is that everything you have said is correct as long as you are an investor for tax purposes (as opposed to a trader where different rules apply).

Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response30 Aug 2021

Hi @adityasabnis

USDT is a cryptocurrency. This means it's a capital asset. This is the case even if its value is tied to FIAT.

This means your scenarios you've presented are all correct. This assumes, as @spirax has said, that you are an investor, and not a trader.

You can read about the tax treatment of crypto on our website.

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