Hi @JS2000,
For Australian tax, if your mother was just holding the crypto for you (as a nominee or bare trustee), then you are treated as the owner and any gains or losses are yours. If it was a genuine gift and your mother fully owned the crypto, then any gains or losses belong to her.
The tax treatment depends on what actually happened between you and your mother, not just that money was transferred. We’d consider several things to decide this, including:
- who made the trading decisions
- who controlled the account
- who received profits or took losses
- whether there was any agreement in place
- what the intention was at the start, and
- who took the risk.
In your situation, you said you made all the trading decisions and managed the funds. This suggests you were the real owner. The fact the money is being returned to you also suggests it was not a true gift. It looks more like your mother was holding the assets for you.
As an Australian tax resident, you must pay tax on all your crypto gains and income, even if the assets are held in someone else’s account. If you're the real owner, you need to report the gains or losses in your own tax return.
Have a read of our info on crypto asset transactions to work out how the rules apply to you.
7 views
0 replies