Crypto deductions for hardware wallet, cold wallet etc. | ATO Community

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(Newbie)Newbie

10 Oct 2021

Hi, I own some crypto and this year I decided to invest in a hardware wallet and cold wallet for extra security and long term storage. My question is can I claim a tax deduction for these items. I am currently staking my crypto and so am earning income from them as well. Thanks for your guidance on this. Regards,

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ATO Certified Response

(Community Support)Community Support

ATO Certified Response

11 Oct 2021

Hi @davwin90, If you have expenses related to producing investment income, generally you can claim a deduction - https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/other-deductions/interest,-dividend-and-other-investment-income-deductions/ However, if you paid for these exepense using crypto, it will also be a CGT event if you're an investor.

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ATO Certified Response

(Community Support)Community Support

ATO Certified Response

11 Oct 2021

Hi @davwin90, If you have expenses related to producing investment income, generally you can claim a deduction - https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/other-deductions/interest,-dividend-and-other-investment-income-deductions/ However, if you paid for these exepense using crypto, it will also be a CGT event if you're an investor.

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Crypto deductions for hardware wallet, cold wallet etc. | ATO Community