Hi, just wondering how do you treat supercharger and staking rewards.
Should I treat both of them like acquiring a new asset with zero cost and just pay CGT when selling them using base cost=$0?
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I treat staking rewards with "cost basis as income". E.g. you received a crypto reward valued at $10 which adds $10 to your taxable income at the moment of the reward. Later you sell that crypto for $15 because it's risen in value. Cost basis as income means you've made a $5 capital gain when selling it. That's $10 of income and $5 of capital gain. Staking rewards are, usually, two taxable events: the moment you receive it and the moment you sell it. If you are just stacking rewards then always remember they are income, valued in AUD, at the time of receiving the reward. On your tax return it will be a report on other income received.
Hi @taxNewbietax,
@greg458263 is correct and staking rewards (at market value when acquired) are treated as income. This amount is then used as your cost base for calculating CGT when you sell.
If you would like to look into it further our Crypto and your taxes article gives a great overview or you can dig a bit deeper on our Staking rewards and airdrops page.
I think I got it right. I'm not just ruminating, I actually coded my take on crypto tax law into my own system that does the calculations. I submitted to the ATO and heard nothing back. The ATO know everything, right? So I assume what my program calculated matches what the ATO's all-knowing-eye calculated. Based on a non response.
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