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Vesting periods for Crypto presales

Newbie

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Hi, I'd like some clarity about the tax treatment of investing in cryptocurrency presales and their associated vesting periods.

 

When new crypto projects are in development people can sometimes access presales of the token.  The presale terms usually include vesting periods that gradually distribute the purchased tokens over months to years.

 

Let's say I transfer $1000 on Jan 1st to participate in presale of token X.  1 month later on Feb 1st the token becomes available to the general public on crypto exchanges and I receive 10% of my purchased tokens.  I then receive 10% per month for the following 9 months.

 

When does the "clock" begin on long term capital gains tax treatment? Is it all up front when I "bought" all my tokens on Jan 1st or is it from when I receive each 10% per month? 

 

Also how do I calculate my cost basis for the purchase?  Is it at the moment I purchased on Jan 1st or is it the price of the token at the time I receive it each month?

 

Thanks.

 

 

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ATO Certified Response

ATO Community Support

Replies 1

Hi @Steve6

 

You need to work out the acquisition date. It's possible to acquire an asset before you own it so it depends on what the circumstances of you paying $1000 were..

 

For example - if you entered into a contract to purchase an asset but received it at a later date then your acquisition date would be the contract date. 

 

The first element of your cost base is the money paid.

 

See our website about Timing of acquisition and Elements of the cost base

 

Ari

 

 

 

 

2 REPLIES 2

Most helpful response

ATO Certified Response

ATO Community Support

Replies 1

Hi @Steve6

 

You need to work out the acquisition date. It's possible to acquire an asset before you own it so it depends on what the circumstances of you paying $1000 were..

 

For example - if you entered into a contract to purchase an asset but received it at a later date then your acquisition date would be the contract date. 

 

The first element of your cost base is the money paid.

 

See our website about Timing of acquisition and Elements of the cost base

 

Ari

 

 

 

 

Newbie

Replies 0

Thanks Ari, that clears it up for me.