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Tax on crypto

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Newbie

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Replies 7

Hi i like to know if buy bitcoin at $3000 par coin and it skyrocket to $50000 a coin do i have pay CGT on it even if i am not selling it

what i read up on online is that you only pay CGT on $47000 if you sell it to AUD

do i still pay CGT of $47000 if i have not sold it

and if bitcoin crashes to $10000 do i still have pay CGT on $47000 or only $7000

even if not sold

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ATO Certified

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Replies 2

Hi @thesuperpro

 

Welcome to our Community!

 

We can provide general information here about tax and super laws in Australia. 

 

If you're involved in purchasing or disposing of cryptocurrency, you need to be aware of the tax consequences, which can vary depending on the nature of your circumstances.

 

If you're an Australian resident for tax purposes and have disposed of cryptocurrency, you may have a capital gain or loss which needs to be reported in your income tax return. You can find more information on our guide on How do I calculate capital gains tax on cryptocurrencies?

 

Thanks, JodieH. 

7 REPLIES 7

Devotee

Replies 5

You don't pay anything until you trade it for another coin or $AUD,

Then you pay it when you lodge your tax return.

 

Newbie

Replies 4

it look like thay are force us to withdraw  crypto just to pay tax on it even if you not sold back to AUD

 

 

Newbie

Replies 3

i find when you see new like this make you not want to invest in crypto at all 

https://bitcoinist.com/student-400k-cryptocurrency-taxes/

it look like you have buy 

https://coinmarketcap.com/currencies/trueusd/ or 

https://coinmarketcap.com/currencies/tether/

to save you for having this happen you https://bitcoinist.com/student-400k-cryptocurrency-taxes/

Best answer

ATO Certified

Community Support

Replies 2

Hi @thesuperpro

 

Welcome to our Community!

 

We can provide general information here about tax and super laws in Australia. 

 

If you're involved in purchasing or disposing of cryptocurrency, you need to be aware of the tax consequences, which can vary depending on the nature of your circumstances.

 

If you're an Australian resident for tax purposes and have disposed of cryptocurrency, you may have a capital gain or loss which needs to be reported in your income tax return. You can find more information on our guide on How do I calculate capital gains tax on cryptocurrencies?

 

Thanks, JodieH. 

Newbie

Replies 0

There's nothing to pay until a trade is made, and once that happens capital gains tax is applied to the profit generated from the trade.  There was a cryptocurrency forum called https://stadivm.com I had a discussion on about buying and selling cryptocurrency and the tax implications of trading Bitcoin and other digital assets.  I've spoken to a number of people that own and trade digital currency who feel that the Australian system is superior to that of even many European nations, but certainly the way the SEC and U.S. govt. have handled it so far.

Australia really does have one of the world's best regulatory schedules for cryptocurrency investments, owing cryptocurrency exchanges and trading platforms, bitcoin mining and other activities that are related to virtual currencies.  In my opinion, the way that Australian tax authorities have handled cryptocurrencies has been balanced, while ensuring that necessary regulations are introduced, and that Australia, Switzerland and Malta are the 3 global regulatory leaders in cryptocurrencies and blockchain legislation. (I actually think this can be measured quantitatively by the results of the regulation on cryptocurrency-involved cybercrime vs. adoptions levels per country).

A line fromhttps://www.loc.gov/law/help/cryptocurrency/world-survey.php explains why Australia is already becoming a world leader in cryptocurrency regulation - taking a logical approach to classifying it is a good first step: "With regard to business transactions, the ATO guidance states that the Australian dollar value of bitcoins (being the fair market value) received for goods and services must be recorded as part of ordinary income, in the same way as receiving non-cash consideration under a barter transaction"

Newbie

Replies 1

Hi @JodieH,

Thanks for your work here.  I was just checking if you removed my comment?  I was just in the process of editing it, and I'm assuming because it had a link in it, it was removed?

There's a comment two spaces up with 4 links in it which has remained here since November it looks like, and that comment is not even informative or really a part of the conversation in any kind of meaningful way.  

One of the links in my comment was to a cryptocurrency discussion forum, the other was to a US govt repository of global crypto-asset tax legislation.

Anyway, not trying to make waves, just wanted to understand so that a resubmission doesn't suffer the same fate!

 

Thanks

Community Support

Replies 0

Hi @mtiller,

 

Thanks for getting in touch!

 

No, we haven't removed any of your comments - it may have been a system error at the time so let us know if it happens again.


Thanks, JodieH.

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