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Interest deduction for Bitcoin investment

Newbie

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Replies 1

I plan to make an investment in bitcoin using borrowed money. 

Bitcoin does not produce any dividends or income. I am investing with a view that Bitcoin will appreciate in value over time. 

Can I claim an deduction for the interest expense for the borrowed money used to make the investment?

1 ACCEPTED SOLUTION

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Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @anon34598

 

Sort of. 

 

Borrowing expenses form the second element of your cost base, which reduces your capital gain by the interest amounts (and any other elements of the cost base) when you eventually dispose of your bitcoin.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @anon34598

 

Sort of. 

 

Borrowing expenses form the second element of your cost base, which reduces your capital gain by the interest amounts (and any other elements of the cost base) when you eventually dispose of your bitcoin.