Choosing between trader or an investment activities

Question

WendyATO · Accepted Answer

No, it doesn't change anything even if it held briefly. If you're an investor and dispose crypto, this is treated as a CGT event. We do receive crypto related information from designated service providers. The information is matched against our records what you have submitted in your return. If there's a discrepancy with the information, we received and what you have submitted we will let you know. This could be considered non-compliance. Is it possible for you to work out quantity and dates you made purchases? You may also be able to look up the market value at the time if you don't have a record of the expenses? If you're going to continue to buy and sell crypto. Check out our keeping crypto records (https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/keeping-crypto-records) page for which records you need to keep on assets and transactions.

HannaTax · Answer

You're more likely to be considered an investor, meaning it's subject to CGT. It's rare to be considered a trade/crypto trading business. Have a look through the link below for more information. https://community.ato.gov.au/s/article/a079s0000009GmxAAE/crypto-and-your-taxes

Choosing between trader or an investment activities

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