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Mining as hobby then selling the crypto later

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Hi there,

 

I am hoping someone can provide some advice or guidance.

 

Back in the first 6 months of 2013, I performed bitcoin mining to learn about the technology.

I work in the IT industry so I consider keeping up to date with new technology as part of my job.

As a result of this mining (Jan-Jul 2013) I ended up with approx 4 bitcoin.

 

Fast forward to 2018, and I sold these 4 bitcoin.

 

Is there any tax implication or liability due for the sale of these 4 bitcoin?

 

Thanks

Ryan.

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Hi @Ryan2,

 

Cryptocurrency is usually considered an investment asset on which you would have to pay capital gains tax. By the sounds of it you would be eligible for a 50% discount on your capital gains tax as you held them for over a year.

 

We have some information on our website about the tax treatment of cryptocurrencies which should cover everything you need to do.

 

Thanks, NateH

1 REPLY 1
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Best answer

ATO Certified

Moderator

Replies 0

Hi @Ryan2,

 

Cryptocurrency is usually considered an investment asset on which you would have to pay capital gains tax. By the sounds of it you would be eligible for a 50% discount on your capital gains tax as you held them for over a year.

 

We have some information on our website about the tax treatment of cryptocurrencies which should cover everything you need to do.

 

Thanks, NateH