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Hi @SydneyMan
There are two things to consider here:
Crypto is usually a CGT asset. If you sell it as an Australian resident for tax purposes you're liable for tax on the capital proceeds. This is the case whether you sell the crypto here or overseas. In your example, the $1k profit would be taxable, assuming no other fees were involved. This is the case if you're an investor.
If you're a trader, it's a business, and so the crypto is your trading stock. When you buy the crypto, that's a deduction, and when you sell it, that's your sales income. The net is your taxable income.
Another factor that would then come into play is the forex change in currency. The difference between its AUD value when you derived it and when you translate it to AUD or use the foreign currency is a CGT event too.
You can read about the taxation of cryptocurrency and forex on our website.
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Hi @SydneyMan
There are two things to consider here:
Crypto is usually a CGT asset. If you sell it as an Australian resident for tax purposes you're liable for tax on the capital proceeds. This is the case whether you sell the crypto here or overseas. In your example, the $1k profit would be taxable, assuming no other fees were involved. This is the case if you're an investor.
If you're a trader, it's a business, and so the crypto is your trading stock. When you buy the crypto, that's a deduction, and when you sell it, that's your sales income. The net is your taxable income.
Another factor that would then come into play is the forex change in currency. The difference between its AUD value when you derived it and when you translate it to AUD or use the foreign currency is a CGT event too.
You can read about the taxation of cryptocurrency and forex on our website.
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