how do I report tax if I bought crypto but tansferred to my son's wallet straight away?

 Author: YellowPotato(Taxicorn)Taxicorn

19 June 2025

Would be best to see a tax agent to sort this situation out.

He transferred these cypto from my coinspot wallet to his own wallet straight away and did trading on different platforms over the year.

He also cashed out some money by transferring from his own wallet to my coinspot wallet and sold them in coinspot.

• The initial coinspot crypto would most likely be yours. The other account would might be considered your son's and not yours
• Assuming the coinspot is yours and other account is your son's then whenever transferring crypto between the two accounts would be a CGT event and market value for proceeds
  • Most likely capital loss for you, for the crypto transfer to your son's wallet, I'm assuming the cost base would have been purchase price + broker fees on the purchase + if there's broker fees on the transfer. Proceeds would be market value.
  • When cashing out, most likely a capital loss since received at market price. Cost base likely to be market price + broker fees from selling. And proceeds would be value before the broker fees is deducted.

He also cashed out some money by transferring from his own wallet to my coinspot wallet and sold them in coinspot.

• Same assumption about the ownership of the wallets as before
• Most likely proceeds for CGT calculation would be market value of the crypto transferred to your account
• Cost base would be the market value on the transferred coins, purchase on bought coins on his trading platform and if there are broker fees on the purchase or transfer to your wallet

Reply0 likes

• Report as inappropriate

 Author: LuckyJ(I'm new)I'm new

19 June 2025

Thanks for your reply. What worried me is how ATO treats it. As the crypto wallet is anonymous. We know it's my son's wallet and he is doing all these transactions, but will ATO believe it?

Reply0 likes

• Report as inappropriate