'Stock splits' in cryptocurrency

Question

AriATO · Accepted Answer

As you no longer own the old token, you have a CGT event. You have also acquired new tokens. The market value of the new token is the proceeds for the disposal of the old token. The proceeds from the disposal of the old token is the cost base of the new tokens.

CaroATO · Answer

Is this a chain split (https://www.ato.gov.au/individuals/Investments-and-assets/crypto-asset-investments/crypto-chain-splits/#:~:text=The%20cost%20base%20of%20a,treated%20differently%20for%20tax%20purposes.)? If you're a share trader there won't be a CGT event. You'll let us know about any profit or loss with your income. As a share investor when there's chain split the cost base of the new crypto is $0.

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