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I am completely lost with Capital Gains Tax for my cryptocurrency.

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Hey there. I’m new to all of the Capital gains tax and everything else. I’ve been buying crypto for years just for the fun of it. Then later down the track I discovered you can use it to play games and other things. So I swapped my old cryptocurrency for others just to be able to get started playing these games for fun. I had no idea there would be tax implications and now I am completely lost. If anyone could help clear this up for me about whether capital gains tax applies to me or not it would be greatly appreciated as this is the first time a capital gains section has shown up and never before in the last 2 years.
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Hi @Jake_M ,

 

https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-currencies-in-australia---specifically-bi...

 

A capital gains tax (CGT) event occurs when you dispose of your cryptocurrency. A disposal can occur when you:

  • sell or gift cryptocurrency
  • trade or exchange cryptocurrency (including the disposal of one cryptocurrency for another cryptocurrency)
  • convert cryptocurrency to fiat currency (a currency established by government regulation or law ), such as Australian dollars, or
  • use cryptocurrency to obtain goods or services.

 

 

 

Reading through your post, I feel it is less likely that your cryptocurrency would be personal use, falling under the 'Personal Use Asset' rule, as more likely you started obtaining crypto as an investment, but best to read through the link and discuss with your tax accountant; https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-currencies-in-australia---specifically-bi...

 

I recommend finding all your transactional history, from the start when you entered the market, to each disposal event.

Many exchanges now offer a downloadable .CSV file, so that would be a great place to start.

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Most helpful response

Initiate

Replies 0

Hi @Jake_M ,

 

https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-currencies-in-australia---specifically-bi...

 

A capital gains tax (CGT) event occurs when you dispose of your cryptocurrency. A disposal can occur when you:

  • sell or gift cryptocurrency
  • trade or exchange cryptocurrency (including the disposal of one cryptocurrency for another cryptocurrency)
  • convert cryptocurrency to fiat currency (a currency established by government regulation or law ), such as Australian dollars, or
  • use cryptocurrency to obtain goods or services.

 

 

 

Reading through your post, I feel it is less likely that your cryptocurrency would be personal use, falling under the 'Personal Use Asset' rule, as more likely you started obtaining crypto as an investment, but best to read through the link and discuss with your tax accountant; https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-currencies-in-australia---specifically-bi...

 

I recommend finding all your transactional history, from the start when you entered the market, to each disposal event.

Many exchanges now offer a downloadable .CSV file, so that would be a great place to start.