If I've held crypto for >1 year, and sell at a profit against cost, what would happen if I were to rebuy the same number of assets, same crypto, at a lower price within 30 days of selling. I'm aware of implications were I to sell at a loss: it would be viewed as a wash trade. But in this case the volatility means I might buy back at a much better price.
Example: I have 2 BTC bought for $20,000 5 years ago and now worth (for example) $70,000 each. I sell at this price, then a week later buy 2 BTC at a lower price of $60,000.
The first trade suggests I would pay CGT on $100,000, with a 50% discount. But if I rebuy within 30 days I actually only realised $20,000 profit. Would I only pay CGT on this (with the 50% discount)?
Continuing, were I now to sell once again at further profit a few months (less than a year) later, would I still be entitled to the CGT discount? Which of the following would be the right calculation of funds on which CGT would be payable (consider as within 1 tax year)?
Trade 1 (2018): Buy @$20,000 * 2 = -$40,000
Trade 2 (Now): Sell @$70,000 *2 = $140,000
Trade 3 (within 30 days): Buy @$60,000 *2 = -$120,000
Trade 4 (3 months later): Sell @$80,000*2 = $160,000
Option a): treated as two wholly separate CGT events and discount is lost for second sale
0.5* (140000-40000)
plus
(160000-120000)
or Option b) treated as two wholly separate CGT events and discount is retained for second sale
0.5* (140000-4 0000)
plus
0.5* (160000-120000)
or Option c) initial sale and repurchase fall under 30 day consideration but discount is lost for second sale
0.5* (140000-120000)
plus
(160000-40000)
or finally d) initial sale and repurchase fall under 30 day consideration and discount is retained for second sale
0.5* (140000-120000)
plus
0.5* (160000-40000)
Thanks
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