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Cryptocurrency bought while living overseas

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Hello, I have recently became a tax resident in Australia. Before I moved here I lived overseas and bought some cryptocurrency while I was overseas. I have decided to start trading that cryptocurrency on a regular basis and I am looking into how I will be taxed on that. I believe that when I became a tax resident in Australia those assets now become australian assets. But for calculating the capital gains on them do I use the market value of the coins at the point when I purchased them overseas, or the current value on the market the day that I became a tax resident?

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Hi @CryptoQs


It depends on if you're an investor (longer term holding) or a trader (short term, sell-and-re-buy).

 

If you're an investor, you'll be taken to have acquired the assets on the day you become a resident for tax purposes. This is because foreign residents for tax purposes are only liable for capital gains on taxable Australian property, of which cryptocurrency and shares are not.


You can read about this on becoming an Australian resident on our website.

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Most helpful response

ATO Certified Response

ATO Community Support

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Hi @CryptoQs


It depends on if you're an investor (longer term holding) or a trader (short term, sell-and-re-buy).

 

If you're an investor, you'll be taken to have acquired the assets on the day you become a resident for tax purposes. This is because foreign residents for tax purposes are only liable for capital gains on taxable Australian property, of which cryptocurrency and shares are not.


You can read about this on becoming an Australian resident on our website.