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bedby9(Newbie)Newbie
11 Aug 2022

Hi guys


I have 3 questions regarding crypto currency.


Q1. I'd appreciate your insight if I will need to pay tax when I mined, as well as pay CGT when sold that coin.


I was told to put mined crypto currency to 24 other income.


And when I sell my coined crypto coins, I will be taxed again on the profit for CGT.

Wouldn't that be double taxed?


Some website says I will disregard any income when I mined the coin, and only register for CGT event when sold that mined coin.


Q2. The mined coins were for hobby, just in my room. Can I deduct electricity and equipment? some said yes, some said no as it can only be deducted for business.


Q3. Some coins (not mined) were lost / gifted / donated. can it be tax deductible for all 3 situations?


Thanks!






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452 views
2 replies

Most helpful response

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
12 Aug 2022

And when I sell my coined crypto coins, I will be taxed again on the profit for CGT.

Wouldn't that be double taxed?


No - cost base = income declared


Q2. The mined coins were for hobby, just in my room. Can I deduct electricity and equipment? some said yes, some said no as it can only be deducted for business.


No a hobby if result is taxable income.


Expenses - yes in theory, but you need to be able to calculate it properly. Mining only.


Q3. Some coins (not mined) were lost / gifted / donated. can it be tax deductible for all 3 situations?


CGT disposals - lost = disposed for no value


Gifted/donated deemed disposed at market value - not deductible unless given to a registered charity (DGIR.)



All replies

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
12 Aug 2022

And when I sell my coined crypto coins, I will be taxed again on the profit for CGT.

Wouldn't that be double taxed?


No - cost base = income declared


Q2. The mined coins were for hobby, just in my room. Can I deduct electricity and equipment? some said yes, some said no as it can only be deducted for business.


No a hobby if result is taxable income.


Expenses - yes in theory, but you need to be able to calculate it properly. Mining only.


Q3. Some coins (not mined) were lost / gifted / donated. can it be tax deductible for all 3 situations?


CGT disposals - lost = disposed for no value


Gifted/donated deemed disposed at market value - not deductible unless given to a registered charity (DGIR.)



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