Author: BlakeATO(Community Support)Community Support 9 Mar 2022
Hi @AlexRoo81
Cars are exempt from capital gains, so there isn't a capital gain on the sale of your car. But cryptocurrencies are capital assets, and the gains will be taxable.
When you receive the $30K USDT, the market value of the USDT becomes the first element of its cost base. When you sell or dispose of the USDT (such as turning it into FIAT/real currency), you'll have a capital gains event. To work out your capital gain, you use the capital proceeds minus the cost base. Your capital proceeds are what you sell it for, or the market value if you didn't sell it. Your cost base is the cost of buying (or the market value if you didn't buy) plus holding and selling fees. The capital gain is taxable, and you'll need to report it on your tax return.
The hard part with USDT is that its value is tethered to the value of the USD, so you'll have an extra step. You need to convert the market value when you received it and the sale value into AUD even if you didn't receive it in AUD.
Take a look at our Community article on Crypto and your taxes. It helps explain the important tax parts of using crypto, how to work out your tax, and how to report it.
We can help with the tax implications of holding and using crypto, but we can't say whether the way it's used is legal. That's something that is handled by AUSTRAC.
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