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Crypto Gambling CGT Implications

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What's the CGT implications of these scenarios... I've provided what I understand to be the case....Assuming gambling winnings/losses are exempt from CGT)

Please help me understand if this is right, or where I've gone wrong.

Thanks in advance.


Scenario A (exempt winnings)
/////////////////////////////////////////////////////////
Bought 100 BTC for $1 each. (100 BTC = $100)
Value increased to $10 each. (100 BTC = $1000)
Gambled 50 BTC and lost. (50 BTC = $500)
Gambled 50 BTC and won 50. (100 BTC = $1000)
'Cash out' 100 BTC for AUD @ $10/btc. = $1000 aud in pocket.

===

CGT exempted on the 50btc won gambling. ( AS in they were (re)obtained at $10/btc rather than $1 -- So have no CGT when cashign out at $10/btc )
+
CGT applicable on the other 50 that grew from $1/btc -> $10/btc (50*9 = $450)

So $450 total taxable
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Scenario B (BTC won -- appreciates )
/////////////////////////////////////////////////////////
Bought 100 BTC for $1 each. (100 BTC = $100)
Value increased to $10 each. (100 BTC = $1000)
Gambled 50 BTC and lost. (50 BTC = $500)
Gambled 50 BTC and won 50. (100 BTC = $1000)
+Value increased to $1000/btc
'Cash out' 100 BTC for AUD @ $1000/btc. = $10000 aud in pocket.
===
The 'won' 50 are taxable from $10->$1000 ($990/btc == $49500 taxable)
The other 50 are taxable from $1->$1000 ($999/btc == $49950 taxable)

So $99450 total taxable.

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Scenario C (exempt losses)
/////////////////////////////////////////////////////////
Bought 100 BTC for $1 each. (100 BTC = $100)
Value increased to $10 each. (100 BTC = $1000)
Gambled 50 BTC and lost. (50 BTC = $500)
'Cash out' 50 BTC for AUD @ $10/btc. = $500 aud in pocket.
===
Gambling Losses/Gains aren't deductible, so CGT will apply normally to the 50 btc. 50btc * $9 profit/each =$450 taxable

So $450 total taxable
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ATO Certified

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Replies 0

Hi @CrustyOceanMan,

 

Welcome to our Community!

 

We can provide general information here on our Community and as your query is more complex and we'd need to know more information about your situation we can't provide a detailed answer.

 

For more information you can check out our article on How do I calculate capital gains tax on cryptocurrencies?. Alternatively if you'd like to receive a tailored response to your specific situation you can write to us to request a private ruling. Private rulings are binding advice from us that explains our view on how the tax law applies to your specific situation. They are free services and we aim to respond within 28 days from receiving your request.

 

Thanks, JodieH.

1 REPLY 1

Best answer

ATO Certified

Community Support

Replies 0

Hi @CrustyOceanMan,

 

Welcome to our Community!

 

We can provide general information here on our Community and as your query is more complex and we'd need to know more information about your situation we can't provide a detailed answer.

 

For more information you can check out our article on How do I calculate capital gains tax on cryptocurrencies?. Alternatively if you'd like to receive a tailored response to your specific situation you can write to us to request a private ruling. Private rulings are binding advice from us that explains our view on how the tax law applies to your specific situation. They are free services and we aim to respond within 28 days from receiving your request.

 

Thanks, JodieH.

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