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_Mojtaba(I'm new)I'm new
13 Sept 2021

Hi there,

I have a few question and I would be greatful if someone help me with these question:

1- My brother (From overseas) and my friend (Inside Australia) sent me money by paypal and direct bank transfer, respectively, to buy cryto for them seperately. I have recived the money and bought them the crypto and send the crypto to them. Should I report this to ATO during tax return? I have all documents for this story. Or I do not need to mention this during my tax return.

2- I myself also deposite 20k AUD in two different exchange including coinspot and binance and buy crypto in these exchanges but I sell a few of them and withdraw 5k to my bank account. Still, there is 15k invested in crypto in the exchanges in different cyptos such BTC, eth,.etc. During the financial year, I sell/swap cyrpto to crypto and crypto to fiat with the invested 15k in exchanges (without withdrawing to my bank), all these things happens only in exchanges.

How should I consider tax in this case?

According to the following post on ATO community

https://community.ato.gov.au/t5/Tax/Cryptocurrency-and-your-taxes/ta-p/10970

I found out I am a crypto investor and I am not a bussiness trader. So do you think it is possible just to consider the differences between the deposited money in AUD and withdraw money as my captial loss/gain during my tax return?

Capital loss/Capital gain= (The money deposited in AUD in exchanges from my bank Acc) - (The money withdraw from exchange to my bank acc). (is this equation corrtect)?

For example in my case it will be -----> the captial loss= 20k-5k=15k captial loss for this year

For the next year it will be -------> the captial gain= 15k+the profit at that time- 0 (I have not deposited anything)= 15k+the profit at that time

Because there are thousands of transactions in my exchanges and it is really diffuclt to export all of them and it cost me a lot even if I ask accountant to do me so.

3- As I mentioned, I just withdraw 5k from exchanges and 15k is still invested in crypto in the exchanges.

If I ignore my captial loss during this financial year, Could I submit my tax return without considering my crypto story?

Because I have thousands of transactions in exchanges and it is really hard to extract each of them,

Thank you for your consideration, in advance.

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1,129 views
1 replies

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Most helpful reply

JodieR_ATO(Community Support)Community Support
14 Sept 2021

Hi @Mojtaba,

In relation to your questions,

1- You would need to ensure you retain all documentation of these transactions, generally legal ownership is the person that purchased them. However, we have answered a similar post about purchasing crypto and immediately giving it to someone else, you can view our response here.

2- If you sell/dispose/transfer or use your crypto' to buy or pay for something, this is seen as a capital gains tax event and reportable on your return. If you're also making income on it, this may be reportable even while you continue to hold the asset.

You can check the information on a similar post here.

3. If you're no longer the legal owner of the crypto' this is seen as a disposal. You need to report your total capital gain amount first. Thereafter, you apply capital losses and the CGT discount if you held the asset 12mnths+. Your capital loss needs to be applied after reporting your total capital gain.

All replies

Most helpful reply

JodieR_ATO(Community Support)Community Support
14 Sept 2021

Hi @Mojtaba,

In relation to your questions,

1- You would need to ensure you retain all documentation of these transactions, generally legal ownership is the person that purchased them. However, we have answered a similar post about purchasing crypto and immediately giving it to someone else, you can view our response here.

2- If you sell/dispose/transfer or use your crypto' to buy or pay for something, this is seen as a capital gains tax event and reportable on your return. If you're also making income on it, this may be reportable even while you continue to hold the asset.

You can check the information on a similar post here.

3. If you're no longer the legal owner of the crypto' this is seen as a disposal. You need to report your total capital gain amount first. Thereafter, you apply capital losses and the CGT discount if you held the asset 12mnths+. Your capital loss needs to be applied after reporting your total capital gain.

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