I got a personal loan to invest in crypto, 100% of my loan went into crypto. I was wondering if I can claim the interest on my personal loan for my crypto investment? I still own all the crypto I have bought, I haven't sold or withdrawn any.
Then the interest is a CGT holding cost that needs to be allocated to the cost base of each coin.
Holding costs reduce a capital gain, but do not increase a capital loss.
Then the interest is a CGT holding cost that needs to be allocated to the cost base of each coin.
Holding costs reduce a capital gain, but do not increase a capital loss.
If the loan is used in an income generating activity, then you may be able to claim the loan as a deductible expense instead of having to capitalise it.
e.g. if you purchase crypto and use it entirely in a staking/ validating / yield activity that generates ordinary income, then the loan interest may be deductible.
If the crypto purchased does not generate income, e.g. you buy and hold bitcoin. Then the interest will need to be capitalised.
15 Apr 2026 · 8 min read time
4 Dec 2023 · 9 min read time
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