Announcements
Are you a tax professional needing a bit more time to lodge? Check out how to apply online for a deferral, or ask the Community!

ATO Community

Re: Crypto tax - moved from abroad

Newbie

Views 61

Replies 3

Hi,

 

I bought some cryptos abroad before I moved to Australia as a permanent resident. I have done some crypto-crypto transactions since I have been in Australia.

Could you please guide me on the following?

  1. How should I calculate the buy price for the crypto I coverted to another coin? Would it be the price on the date I entered australia or the price on the date I bought the cryptos prior to entering Australia?
  2. If I did a crypto transaction within a year after entering australia, but I originally got it back more than 12 months before the crypto conversion, would I be paying short term gain or Long term gain tax?

Thanks

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 2

Hi @u3356,

 

Sure, we can guide you with this. The date you arrived in Australia will be acquisition date of your overseas capital assets. Thereafter, when you sell/dispose/transfer or use them to buy something it will trigger a CGT event.

 

You will need to factor in market value from the date you arrived here into your cost base. Then deduct the cost base away from your sale price, the difference will be your capital gain or loss. If you held the asset for 12mnths+, you can still apply the CGT discount.

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hi @u3356,

 

Sure, we can guide you with this. The date you arrived in Australia will be acquisition date of your overseas capital assets. Thereafter, when you sell/dispose/transfer or use them to buy something it will trigger a CGT event.

 

You will need to factor in market value from the date you arrived here into your cost base. Then deduct the cost base away from your sale price, the difference will be your capital gain or loss. If you held the asset for 12mnths+, you can still apply the CGT discount.

Newbie

Replies 1

Many thanks you for the quick response,

 

Can I please ask for your expert guidance on couple of further points:

 

1) With regards to the 12 months+ for CGT discount, I sold the assets within the 12 month period of entering australia but had originally bought them more than 12 months before entering Australia. would I still be able to get the discount or would the 12 month period count from the date I entered australia?

 

2) I have the sale transaction details from the exchange, what buy transaction details do I have to provide if any (as the buy price would be calculated as per the date of arrival)? Or, are the buy details only needed if one is claiming the 12 months + CGT discount?

 

Thanks,  

ATO Community Support

Replies 0

Hi @u3356

 

1) Yep! Because you've owned the crypto for more than 12 months, and are an Australian resident for tax purposes, you'll be eligible for the discount method.

 

2) You won't be required to give any details to show your calculations or workings when you first lodge your return, but there are records you need to keep for crypto. This includes:

  • the date of the transactions
  • the value of the cryptocurrency in Australian dollars at the time of the transaction (which can be taken from a reputable online exchange)
  • what the transaction was for and who the other party was (even if it’s just their cryptocurrency address).