ATO Community

Re: Earnt Crypto on Signup

Initiate

Views 910

Replies 4

Hi,

 

I recieved an email from ATO advising "Our records indicate you have previously disposed of cryptocurrency." So I'm just wanting to make sure I get this correct before lodging my tax return.

 

In 19-20 I have not purchased any cryptocurrency but have earn some via signup bonuses to a crypto exchange. I subsequently, disposed of this cryptocurrency. The total $ value is <$200.

 

Do I need to declare? If so how do I declare?

1 ACCEPTED SOLUTION

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Most helpful response

Former Community Support

Replies 3

Hi @willyhitch

 

You need to declare information if you dispose (sold, gifted or traded) cryptocurrency. You can find more information in our guide on How do I calculate capital gains tax on cryptocurrencies?. Alternatively, you can find information on our website

 

Hope this helps!

4 REPLIES 4

Most helpful response

Former Community Support

Replies 3

Hi @willyhitch

 

You need to declare information if you dispose (sold, gifted or traded) cryptocurrency. You can find more information in our guide on How do I calculate capital gains tax on cryptocurrencies?. Alternatively, you can find information on our website

 

Hope this helps!

Initiate

Replies 2

Thank you YianaATO.

 

After some more research is the cryptocurrency which I earnt via signup bonuses to a crypto exchange considered Airdrops?, and subsequently Income? If so, how do I enter this on my Tax Return.

 

Many thanks

ATO Community Support

Replies 0

Hi @willyhitch

 

We'll look into this for you and get back to you

Community Moderator

Replies 0

 

Hi @willyhitch 

 

Thanks for your pateince while we checked this for you with our specialist team.

 

Generally, you would not need to declare the value of the sign up bonus cryptocurrency that you received as income unless you are carrying on a business with your cryptocurrency. Where the cryptocurrency is received as part of business activities then you would declare it as part of your business income. Where you held the cryptocurrency for investment or private purposes and you received the cryptocurrency as a result of signing up to an exchange this would not represent income as it does not arise from the holding of cryptocurrency or from actions undertaken resulting in earnt income. Where you did not declare the cryptocurrency as income and did not pay anything for it, the CGT cost base of the signup bonus cryptocurrency would have zero acquisition costs when calculating CGT on disposal of the cryptocurrency.