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Re: Crypto Rewards

Initiate

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Replies 2

I’m a little bit confused and looking for some help with cryptocurrency rewards and how CGT may apply in this situation.

 

Over the past 4 months, I’ve been using a web browser called Brave. Each month I receive Brave Rewards in the form of a cryptocurrency called BAT (Basic Attention Token). I have kept written records of the dates, number of tokens received and the market value in AUD each time I have received a Reward.

 

Brave is partnered with an exchange called Uphold to hold BAT rewarded from Brave. I wanted to transfer a total of 18.5 BAT I had accrued from Uphold to BTC Markets - and when I attempted the transfer, I was shown a fee of 22 BAT would apply (lol). So I didn’t do that..

 

Instead, I transferred 18.5 BAT from Uphold to BTC Markets XRP wallet. Based on market value, the 18.5 BAT = 12.803273 XRP. (1 XRP = 1.44483 BAT, plus Network Fee -0.00144 BAT). I have the date and market value of XRP at time of transfer

 

Does this trigger a CGT event? And if so, how do I calculate this event? 

 

I really appreciate your help and guidance helping me figure this stuff out Smiley Happy 

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Most helpful response

ATO Community Support

Replies 1

Hi @Lou_Cooper

 

When you transfer the crypto, the transfer from your wallet to your own wallet again isn't a CGT event, since there's no change in owner.

 

However, the network fee is a CGT event, and that fee is liable for CGT.

 

The cost of the network fee then goes into your cost base of your remaining crypto.

 

We have a thread on this previously which explains further: Crypto CGT Rules / Network Fees and cost-base / Market Valuation.

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

Hi @Lou_Cooper

 

When you transfer the crypto, the transfer from your wallet to your own wallet again isn't a CGT event, since there's no change in owner.

 

However, the network fee is a CGT event, and that fee is liable for CGT.

 

The cost of the network fee then goes into your cost base of your remaining crypto.

 

We have a thread on this previously which explains further: Crypto CGT Rules / Network Fees and cost-base / Market Valuation.

Initiate

Replies 0

Thank you @BlakeATO Smiley Happy