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Ownership of the crypto asset

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Hi,
My husband purchased some crypto in his Independant Reserve account, we stored it offline in our wallet and then transferred it into my IR account and sold it (my husband thought that would be easier as we intended to re-purchase more crypto in my name only). Now we have the problem of the crypto having the purchase name and sale name different for the same asset. Do you know who owns the asset (whos tax return I need to put the capital gain on)? Thanks 

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Hi @Teenz777,

 

Thanks for your patience whilst we checked information with a specialist area regarding your query!

 

Based on the information you've provided, your husband needs to calculate CGT by reference to transfer of his half share to you. He needs to compare his CGT cost base to the market value of his interest at that time.

 

As regards your tax treatment, you need to compare the cost base of your original interest to the value of the amount received.  Because the acquisition cost of the your husband’s interest will have the same value as what it was disposed for there will be no gain or loss on this aspect.

 

These amounts will be taken into account in working out a yearly net capital gain or loss.

 

If cryptocurrency is held as part of a business, the amounts will be a deductible loss or income amount at the business and professional income schedule of the supplementary tax return.

 

Hope this helps, JodieH.

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Hi @Teenz777,

 

Welcome to our Community.

 

We are seeking some additional information from a specialist area and will respond asap.

 

Thanks, SueO

Best answer

ATO Certified

Community Support

Replies 0

Hi @Teenz777,

 

Thanks for your patience whilst we checked information with a specialist area regarding your query!

 

Based on the information you've provided, your husband needs to calculate CGT by reference to transfer of his half share to you. He needs to compare his CGT cost base to the market value of his interest at that time.

 

As regards your tax treatment, you need to compare the cost base of your original interest to the value of the amount received.  Because the acquisition cost of the your husband’s interest will have the same value as what it was disposed for there will be no gain or loss on this aspect.

 

These amounts will be taken into account in working out a yearly net capital gain or loss.

 

If cryptocurrency is held as part of a business, the amounts will be a deductible loss or income amount at the business and professional income schedule of the supplementary tax return.

 

Hope this helps, JodieH.

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