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Mining cryptocurrencies

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Newbie

Views 1001

Replies 2

Hello,

 

What expenses if any are we able to claim when receiving an income from bitcoin mining as an individual (not a company)? Are we able to claim any expenses incurred when using a cloud mining service?.

 

Thanks.

 

 

 

1 ACCEPTED SOLUTION

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Best answer

ATO Certified

Devotee

Replies 1

Hi @rogersmarin,

 

Thanks for posting! Generally speaking, if you're in the business of mining bitcoin, any income that you earn from transferring mined bitcoin to a third party would be included in your assessable income; most expenses you incur would be allowed as a deduction. Losses you make from the mining activity may also be subject to the non-commercial loss provisions.

 

We have a general guide on how we tax cryptocurrencies on our website. You can also contact our early engagement team if you need tailored advice on how we think tax law applies to your specific situation.

 

Hope that helps!

2 REPLIES 2
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Best answer

ATO Certified

Devotee

Replies 1

Hi @rogersmarin,

 

Thanks for posting! Generally speaking, if you're in the business of mining bitcoin, any income that you earn from transferring mined bitcoin to a third party would be included in your assessable income; most expenses you incur would be allowed as a deduction. Losses you make from the mining activity may also be subject to the non-commercial loss provisions.

 

We have a general guide on how we tax cryptocurrencies on our website. You can also contact our early engagement team if you need tailored advice on how we think tax law applies to your specific situation.

 

Hope that helps!

Highlighted

Newbie

Replies 0

Thanks for your answer, just a small question about the following:

 

 "any income that you earn from transferring mined bitcoin to a third party would be included in your assessable income"

 

Do exhanges count as third parties? For example if I transfer the bitcoin I mined into an exchange to be traded for AUD.

 

Thanks.