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Bitcoin ponzi scheme

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Hi 2 years ago between myself and a few friends we invested $60000 into a bitcoin company Called Usi tech which turned out to be a scam, we lost all of our money is this tax deductible as loss
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Former Community Support

Replies 2

Hi @Ozyboy75

 

Welcome to our Community!

 

We've answered a similar query previously which you can read about here on Crypto investment loss. Unfortunately, as cryptocurrency is considered an investment this would be considered a capital loss which can only be offset against a capital gain and can't be claimed as a tax deduction. 

 

You can find further information about loss or theft of cryptocurrency on our website. 

 

Thanks, JodieH. 

3 REPLIES 3

Most helpful response

ATO Certified Response

Former Community Support

Replies 2

Hi @Ozyboy75

 

Welcome to our Community!

 

We've answered a similar query previously which you can read about here on Crypto investment loss. Unfortunately, as cryptocurrency is considered an investment this would be considered a capital loss which can only be offset against a capital gain and can't be claimed as a tax deduction. 

 

You can find further information about loss or theft of cryptocurrency on our website. 

 

Thanks, JodieH. 

Newbie

Replies 1

Hi,
Is there a different tax ruling to claim losses of the company like USI-Tech that is supposedly considered as a Ponzi Scheme and not a Cryptocurrency?

ATO Community Support

Replies 0

Hi @Freedomat30 ,

 

Thanks for your question and sorry for the delay in response.

 

There's a business tax deduction in relation to expenses from employing people:

  • losses due to misappropriation of money by an employee or agent, for example,

             fraud, theft or embezzlement.

 

INCOME TAX ASSESSMENT ACT 1997 - SECT 25.45

 

Thanks for posting,

JasonT