• 230 Online
  • 20956 Members
  • 23208 Posts

ATO Community

Re: Crypto gains and losses

Ask a question

Newbie

Views 364

Replies 1

I invested around $4000 in crypto currency and was wondering how the the gains or losses will be treated once i cash them out? 

Another issue is that a friend helped me to invest using his overseas based account as he is based overseas and i just transferred him the amount i wanted to invest. Will the losses be tax deductible and gains liable to be taxed? Do i have to declare the losses and gains? I was a student until recently and thus unsure how the crypto will be treated once i decide to cash it out.

 

Thank you

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @Windy 

 

There’s been a lot of discussion on ATO Community about crypto-currency. There’s many different things to consider, and you’ll need to ensure you read both;

- this ATO webpage and

- this Knowledge Base ATO Community Article.

 

If you own the crypto you’ll generally have to keep good records and consider the capital gains implications on disposal. It probably doesn’t matter if you’ve got a mate overseas to help you (unless you dealt with a foreign exchange  - then there could be some other tax considerations). Crypto isn’t a form of money/currency for tax purposes – rather, the current laws see crypto as a capital asset and CGT rules apply on disposal, so depending on your circumstances you might carry forward a capital loss, or add your capital gain in with the rest of your taxable income.

 

Cheers,

 

1 REPLY 1
Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @Windy 

 

There’s been a lot of discussion on ATO Community about crypto-currency. There’s many different things to consider, and you’ll need to ensure you read both;

- this ATO webpage and

- this Knowledge Base ATO Community Article.

 

If you own the crypto you’ll generally have to keep good records and consider the capital gains implications on disposal. It probably doesn’t matter if you’ve got a mate overseas to help you (unless you dealt with a foreign exchange  - then there could be some other tax considerations). Crypto isn’t a form of money/currency for tax purposes – rather, the current laws see crypto as a capital asset and CGT rules apply on disposal, so depending on your circumstances you might carry forward a capital loss, or add your capital gain in with the rest of your taxable income.

 

Cheers,

 

Top Solution Authors