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Question about how to calculate capital gain or loss

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Newbie

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Replies 3

Hey guys,

 

To simplify my question the most, consider the below senario:

 

1. I spent 10,000 AUD for 1 BTC

2. One month later, the price rised and I spent another 20,000 for another BTC and I have 2 BTC

3. Another month later, I sold 1 BTC for 15,000 AUD, then I have 15,000 AUD and 1 BTC.

 

When I report to ATO, what is my gain or loss, is it 5,000 (15,000-10,000) or -5,000 (15,000-20,000), or in other words I get 1,5000 for selling 1 BTC but what is the corresponding expense for that 1 coin?

 

I believe many people would sell and buy several times with different price, if you end up selling all the coins it is easy to calculate the gain by just substract  expense AUD from the final sale money, but how I shall calculate in the above case which I think is more common happening.

 

Thanks in advancedCat Embarassed

1 ACCEPTED SOLUTION

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Best answer

Initiate

Replies 1

ATO recommends first-in, first-out.

 

https://www.ato.gov.au/General/Capital-gains-tax/Shares,-units-and-similar-investments/Identifying-w...

 

But the ATO obviously will not tell you how much you can skirt the rules. You probably can even do an average or just take the latest. There's literally no way for even you to realistically know which BTC. 

3 REPLIES 3

Taxicorn

Replies 0

Is there any way to identify exactly which bitcoin was sold?

 

If not then by all means declare -$5,000 Capital Loss.

 

Best answer

Initiate

Replies 1

ATO recommends first-in, first-out.

 

https://www.ato.gov.au/General/Capital-gains-tax/Shares,-units-and-similar-investments/Identifying-w...

 

But the ATO obviously will not tell you how much you can skirt the rules. You probably can even do an average or just take the latest. There's literally no way for even you to realistically know which BTC. 

Newbie

Replies 0

Thank you Epi,

 

I guess this question also applies to other GCT like stocks, thank you!!

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