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cactusflower(Newbie)Newbie
11 Mar 2024

Hi there,


I have been doing some reading but couldn't find much about what kind of documents are required for gambling winnings from crypto casinos.


For example, consider this hypothetical scenario:

If you spend money on an offshore crypto casino on a whim, you get a high payout of over $100k.

Afterwards, you decide to hold onto the crypto for 2 years and sell it for a profit.


As far as I understand your cost base would be the price that you received the winnings and you would pay tax on any capital gains accrued after the point they were received.

E.g. Starting value 100k, ending value 200k = 100k taxable income.


Questions:

  1. What kinds of documents can be used to backup the winnings from the casino and would that be required?
  2. Is a crypto wallet statement showing when you recieved the crypto currency and when you disposed of it suffice for evidence?
  3. If you were unable to provide evidence to backup casino winnings would that set the cost base to $0 so you would have to pay tax on all 200k?


Thankyou for the advice.



2,285 views
1 replies
2,285 views
1 replies

Most helpful response

Most helpful reply

deborah621(Newbie)Newbie
12 Mar 2024

To back up winnings from a crypto casino, you would typically need to provide records that show the date and amount of cryptocurrency won, the value of the cryptocurrency at the time of winning, and the platform or casino involved. This could include screenshots from the casino, transaction histories, or statements from your crypto wallet. A crypto wallet statement that clearly shows when you received the cryptocurrency and when you disposed of it could be used as evidence for tax purposes. It should ideally include the dates, amounts, and fair market value of the cryptocurrency at the time of the transactions. If you are unable to provide evidence to back up your casino winnings, the tax authorities may indeed consider your cost base as $0, which means you could potentially be taxed on the full amount when you dispose of the cryptocurrency. However, this would depend on the specific tax laws and regulations in your country.

All replies

Most helpful reply

deborah621(Newbie)Newbie
12 Mar 2024

To back up winnings from a crypto casino, you would typically need to provide records that show the date and amount of cryptocurrency won, the value of the cryptocurrency at the time of winning, and the platform or casino involved. This could include screenshots from the casino, transaction histories, or statements from your crypto wallet. A crypto wallet statement that clearly shows when you received the cryptocurrency and when you disposed of it could be used as evidence for tax purposes. It should ideally include the dates, amounts, and fair market value of the cryptocurrency at the time of the transactions. If you are unable to provide evidence to back up your casino winnings, the tax authorities may indeed consider your cost base as $0, which means you could potentially be taxed on the full amount when you dispose of the cryptocurrency. However, this would depend on the specific tax laws and regulations in your country.

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Gambling winnings from Crypto Casino | ATO Community