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Paying Crytpo Taxes

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Juat a quick question that I am finding hard to find an answer for. 

 

Recently I found out that you have to pay tax on crypto to crypto trades. I was not aware and only thought that it was crypto to aud. 

 

The problem is I made a 100% profit and traded my crypto into another crypto. The problem being is that I will not have enough AUD to cover this cost of capital gains. 

Am I allowed to sell off some of my crypto that I have traded into to pay for my owing tax. Or is that considered another taxable event? The new crypto i have traded into has made a 200% since trading into it. 

 

Any help would be great.

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Most helpful response

ATO Community Support

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Hi @Mozzo

 

You're not the first and certainly won't be the last person to not realise this is a CGT event. 

 

A cryptocurrency-to-cryptocurrency transfer or trader is considered a disposal event, since you're, well, disposing of that asset to acquire a different one.

 

You can read about types of CGT events on our website.

 

Any disposal of your cryptocurrency will constitute a CGT event, meaning you'll have tax to pay on that. While you can sell your other held-cryptocurrency to help pay your liability, it'll also count as a CGT event, and will have capital gains tax payable on it. 

 

Remember that your capital gain is reduced by your cost base, so you're not paying CGT on the entire amount, only the profit amount!

 

If you're not able to make a payment when it's due, remember we can give you help with paying, such as by setting up a payment plan. Smiley Happy

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Mozzo

 

You're not the first and certainly won't be the last person to not realise this is a CGT event. 

 

A cryptocurrency-to-cryptocurrency transfer or trader is considered a disposal event, since you're, well, disposing of that asset to acquire a different one.

 

You can read about types of CGT events on our website.

 

Any disposal of your cryptocurrency will constitute a CGT event, meaning you'll have tax to pay on that. While you can sell your other held-cryptocurrency to help pay your liability, it'll also count as a CGT event, and will have capital gains tax payable on it. 

 

Remember that your capital gain is reduced by your cost base, so you're not paying CGT on the entire amount, only the profit amount!

 

If you're not able to make a payment when it's due, remember we can give you help with paying, such as by setting up a payment plan. Smiley Happy