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lazypostman(Newbie)Newbie
23 Feb 2023

Hi,

We (My Wife and I) would like to add Crypto to our Portfolio. We can only seam to purchase it in a single name.

We like to keep our assets equal to make tax 50% when we start drawing down our saving.


So...

If we purchase Crypto in my name on a exchange and then transferer the funds to a Physical and/or Software wallet with no names attached to them. These are controlled by both of us. Could I claim 50 percent of the transaction as a CGT Event and claim the profit or loss in the value in the time it takes to transferer it to the other wallets?

Would that lead to joint ownership? is there a simpler way?

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3,638 views
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JodieR_ATO(Community Support)Community Support
27 Feb 2023

Hi @lazypostman,


From a tax perspective, capital gains tax assets would need to be purchased and reflect joint ownership from the outset to be considered jointly owned. Capital gains tax assets can be owned by more than one individual. This is generally how income and deductions are determined, according to legal ownership of the asset. If you cannot demonstrate legal ownership by both parties, it will be whoever purchased the item and owns it legally. There are differing rules for a relationship breakdown, these are usually overseen by courts of law.


We've answered a similar post on our forum, you can view our response from here.

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Most helpful reply

JodieR_ATO(Community Support)Community Support
27 Feb 2023

Hi @lazypostman,


From a tax perspective, capital gains tax assets would need to be purchased and reflect joint ownership from the outset to be considered jointly owned. Capital gains tax assets can be owned by more than one individual. This is generally how income and deductions are determined, according to legal ownership of the asset. If you cannot demonstrate legal ownership by both parties, it will be whoever purchased the item and owns it legally. There are differing rules for a relationship breakdown, these are usually overseen by courts of law.


We've answered a similar post on our forum, you can view our response from here.

hodl_l00t(Dynamo)Dynamo
16 Mar 2023

Hey,



The best and easiest would be if the exchange allows you to register an account with joint ownership. In practice though, most Australian exchanges don't allow for this.



Even if the account name is established in one person's name, it is still possible to demonstrate the joint legal ownership. One possible way of achieving this is through a Bare Trust. There's an article from Syla here that discusses joint ownership of crypto in one of the sections.



Your example would be hard to substantiate the joint ownership. i.e. how to determine that the wallet is jointly owned 50:50 when there are no names attached, and it came from an exchange account that was 100% owned by a single individual?


(edited by moderator 16/03/23)

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