Hi there, I am a crypto investor and I trade in USDT Perpetual Contracts on Bybit where a USDT Contract is a digital currency contract that uses USDT as both the quote currency and the settlement currency. For example, I may hold a short position with leverage over BTC/USDT and when the position closes I will have realised profit or losses in usdt. This is the link to the bybit website describing it [removed by moderator]
Since my understanding is that we don’t own the underlying asset with this usdt perpetual contract like with cfd trading, I am assuming the profit/loss is part of the assessable income and not cgt??
Another question I have is that before I did the USDT Perpetual Contracts trading, I received 800 usdt from bybit that will be used to cover trading losses and offset fees before my capital is used. The bonus usdt cannot be withdrawn from the account.
For example, on 10june, I have 1000 usdt in my account plus 800 usdt given as a bonus by bybit so net 1800usdt is in my account.
I made a loss of 200 usdt on 15 june (loss value accounts for the fees). Thus in my account, I have 1000 usdt + 600 bonus usdt.
I made a profit of 110 usdt-10usdt for fees on 20june. Because the 10 usdt fee was shouldered by the bonus usdt, thus in my account, I have 1110 usdt + 590 bonus usdt.
Then I disposed of all my usdt by gifting the 1110 usdt to my friend. The 590 usdt that could only be used for trading and could not be gifted remained in my account and expired on 30 june 2023 ie it is no longer in my account.
Assuming that the profit loss is accounted for in the assessable income and not cgt, since the 1000usdt that I put into the account grew to 1110 usdt after I completed all my trades and only 1110 usdt could be withdrawn from my account, I am assuming that I do not need to declare the 200 usdt loss in my tax return and that the profit that I declare is 110 usdt???
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