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darwinman(Newbie)Newbie
5 Oct 2021

Good Afternoon, I have a Etoro Crypto Portfolio, it is essentially a group of crypto assets that is bought with a minimum investment of $1000 USD. They weight the investment by the market cap of the crypto currencys. For example of the $1000 xurrently Bitcoin is 18.85%, Eth is 12.51% and Miota is 7.2%. Each year they rebalance or during the year if a particular asset climbs greatly in value they rebalance the portfolio by closing that particular crypto and then balance its funds out across all the others to ensure the ratios stay the same. If they rebalance a position it displays as closed but you dont have access to the funds unless you close the whole portfolio. Is it taxable under CGT each time they rebalance or only when you close the portfolio and either reinvest elsewhere or take the funds? Thanks in advance

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AriATO(Community Support)Community Support
7 Oct 2021

Hi @darwinman It sounds like when a rebalance occurs you're disposing of crypto when it's value increases and reinvesting the funds. If that's the case then the disposal is a CGT event. Unfortunately your link didn't work for me but if you want more specific info then you may want to consider requesting an Early engagement discussion. https://www.ato.gov.au/General/ATO-advice-and-guidance/ATO-advice-products-(rulings)/Early-engagement-for-advice/

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Most helpful reply

AriATO(Community Support)Community Support
7 Oct 2021

Hi @darwinman It sounds like when a rebalance occurs you're disposing of crypto when it's value increases and reinvesting the funds. If that's the case then the disposal is a CGT event. Unfortunately your link didn't work for me but if you want more specific info then you may want to consider requesting an Early engagement discussion. https://www.ato.gov.au/General/ATO-advice-and-guidance/ATO-advice-products-(rulings)/Early-engagement-for-advice/

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