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Re: Passing on ownership of crypto to another

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Hi there,

I have been doing some crypto investing/trading for family members. They have given me their money and I have made accounts and bought coins under my name for them because they dont know how to do it. As I am going to be transferring it back at some stage I am trying to work out how I can legally show that its no longer owned by me. I am concerned that the ATO and AUSTRAC or whatever will see history of crypto transactions on my end and slap me with a tax bill despite no longer owning the coins myself. I am transferring the coins to various exchanges in their names and they will be declaring gains and tax themselves. But how do they formally take ownership of the assets so that I am no longer legally bound to pay tax?  Some exchanges dont have ID verification so for anyone investigating me it doesnt look like I have given back the coins and might look like I still own them.

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Most helpful response

Devotee Registered Tax Practitioner

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I believe the onus would be on you to prove there was a declaration of trust i.e You were holding the asset on behalf of another. If you continue to do this going forward it would be advisable to setup a trust allowing you to allocate the profits to theindividual in question. Your previous activity would need to be addressed in a private ruling. I can be contacted at daniel.harrison@fpcc.com.au if you would like to discuss these matters further 

I'm not a ato employee but I am a registered tax agent who both invests and has a number of clients with cryptocurrency investments

1 REPLY 1

Most helpful response

Devotee Registered Tax Practitioner

Replies 0

I believe the onus would be on you to prove there was a declaration of trust i.e You were holding the asset on behalf of another. If you continue to do this going forward it would be advisable to setup a trust allowing you to allocate the profits to theindividual in question. Your previous activity would need to be addressed in a private ruling. I can be contacted at daniel.harrison@fpcc.com.au if you would like to discuss these matters further 

I'm not a ato employee but I am a registered tax agent who both invests and has a number of clients with cryptocurrency investments