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Re: Crypto

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Newbie

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Hi let’s say I invested $50000 into crypto will I get that as tax credit or do I need to actually loose it to get the tax credit? Not I want to lose it

Cheers Anthony
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Hi @Anthony

 

Thanks for getting in touch!

 

@macfanboy is correct - you don't receive any tax credit for any type of investment. 

 

You can find general information about the tax treatment of cryptocurrencies on our website. 

 

Thanks, JodieH. 

 

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Devotee

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You will not get any credit for any investment.

 

If you spend $50,000 then you have spent it.

 

If you trade it to another Digital currency or back to $AUD then you will either have a:

Capital Gain (pay extra tax on this) or a

Capital Loss (Generally can only use this to offset any future Capital Gain).

 

There are limited situations where you may be able to offset this loss against your normal income such as showing that during the year you earned more than $20,000.

 

So if you're trading, and at some time during the year showed an actual trading $20,000 gain, then by the end of the tax year you ended up with a trading  loss you may be able to offset that loss under non-commercial business loss rules.

 

 

Best answer

ATO Certified

Community Support

Replies 0

Hi @Anthony

 

Thanks for getting in touch!

 

@macfanboy is correct - you don't receive any tax credit for any type of investment. 

 

You can find general information about the tax treatment of cryptocurrencies on our website. 

 

Thanks, JodieH. 

 

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