Ausfag Tax Tips

ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---specifically-bitcoin/

one google search

That does not say anything about cashing out under 10k

tax man .....crypto.....
ROLLINGS

yeah its called getting so much money i goto singapore or cayman islands with a big fat f u grin on my face

So if they went from fiat > straight into alts > BTC > fiat they have no hope of getting out of tax do they?
>4737354
So you're saying you only have to pay tax on the earnings over 10k?

The earning are reported as a capital gain and you pay tax on the amount of profit earned. If you have held the asset for less than 12 months you pay tax on 100% of the amount of capital gain. If you have held the asset for more than 12 months you only pay tax on 50% of the profit earned.

You may have to prove that you held the asset for longer than 12 months if claiming the lowered capital gain rate.

The overall capital gain rate is dependant on your overall income bracket for that year and takes into account all other income.

your "friend" should see a tax agent.

also read this: munros.com.au/blog/business/taxation-of-bitcoin-in-australia/
" profit on the sale of bitcoin may be 100% taxable, 50% taxable or sometimes tax-free "

If you are cashing out then it means it is for personal consumption depending on the transaction of where the money goes. Your bank keep tracks of it.

Just use crypto to buy stuff you would normally purchase with dollarydoos. Think of it as effectively cashing out.

I'm using LRoS for rent and utilities.

Whether it can be pulled off or not I don't know, but seems like it would fall under
>If your transactions amount to a profit-making undertaking or plan then the profits on disposal of the bitcoin will be assessable income.

There's nothing about any kind of earning threshold for specifically crypto, if he has no other income he's not going to be paying very much tax on 30k though

It won't, it'll be considered profit making undertaking and youll need an argument
Yes that's the idea there but if they find out you've been trading you may have a problem

This is exactly the info I was hoping for thanks user.

Bad news is they jumped in April and jumped out last week so looks like they're going to cop the 100% rate.

Flip side is though if they stayed in for a year until April 2018 they may not have scored the same amount of earnings anyway...

Happy to help user! Just treat it like any other capital gain/loss event. Same thing goes for shares in AU.

It can potentially be racked up as ordinary income, tax bracket and other money flows will determine best way to try swing it

I didn't start trading until July and plan to declare everything next year. Hopefully this approach at least minimises tax.

Yep. Stay under that bracket!

Best way to minimize is different for everyone, best to get professional advice earlier rather than later, if you can't afford find someone with some kind of experience. Make sure your records are up to scratch now and keep on top of them, it is a fucking nightmare trying to go back over long periods, it took me about a week, some exchanges make it extremely time consuming

So I have to pay capital gains on those assets before disposing of them? I.e. Cashing out or buying something in btc

Buying a shitcoin counts as disposal

Oh trust me I know that. Been on the ASX years before I started trading Crypto.

One thing I've learned is that you should never pass up an opportunity to make money just because of tax. I held speculative shares for too long because I was waiting for the cap gains discount.

And then disposing of the shitcoin is another taxable event? Cunts.

Yes make the money first worry about the tax second, but it is worth keeping key dates in mind, pulling blatant last minute tax reduction stunts is frowned upon

Yes for us ausfags exchanging it for anything is a tax event but it's only total gain / loss and special situations that really matter money wise, each event matters when they ask you to hand over your records for audit

If I am a NEET with 0 income otherwise, and I make capital gains less than the tax threshold ($18,000) do I pay any tax?

As I understand it capital gains are added to income as part of determining what bracket you fall into. Since my income is zero, I only have to worry about capital gains tax until I start earning over 18k right?

You still need to report it in your tax return. If you are below the minimum threshold the estimate will say you do not have to pay it. Regardless of your situation you should still report it. Not worth the effort to have ATO requesting more information or investigating.

Sorry for being a retard user and thanks for your patience and answers so far.

Say I buy 1 eth and then buy shitcoin A, shitcoin A makes gains and then I trade all my shitcoin A for 2 eth. Should I just declare my 1 eth profit in AUD equivalent?

Bump

I would like to know this too. Or do you only declare profit if you actually cash it out? (ie through BTCMarkets or whatever)

Do I need to report each trade, or just the total profit/loss after adding the gains/losses from each trade up at the end of the tax year?

Yes that would be considered profit. You end up with one number, all the trades that resulted in a profit minus those that resulted in a loss.

But, you keep a list of every trade with those AUD values, how you determine those AUD values is mostly up to you but you need to be reasonable, if you don't do this or appear to being unreasonable and you get audited the tax man will do it for you and he will be brutal

cashing out thing is a meme, the burgers lack clarity on this but for us it is set in stone
you report profit / loss but you need the records for when they ask you for them, they're valuable information for yourself anyway and will help you determine the most favorable profit / loss number

>report profit / loss but you need the records for when they ask you for them

Will they always ask for records? Mine are a bit of a mess, but I tried to keep the best track of things as I could.

We can't know if they will ever ask, but we also can't know if exchanges will exit scam and vanish along with our histories, at the very least export copies of those so you have something to work off should the time come. End of the day it's a legal requirement and if you can't produce them it's going to cost you money.

What you want to do EOFY is come up with the most favorable number possible, you'll need the records to be able to work that out and actually have a case behind it.

Well I have been using bitcoin.tax/

And each trade/buy/sell I do, I add it into there. Sometimes it is hard to keep track of things like fees though where the exchange is like "This will cost 0.1 SALT to withdraw".

You're doing it right you'll be fine

Ok thank you for your help user

When you start bursting through those thresholds seek out a pro, but under 18k you're small time and making an indisputable effort to do this properly, you aren't going to get shitted on for not getting it 100% because for every you there's going to be 1000 other NEETs with shit tier evasion strategies for the tax man to spend his time shredding

Remember anons, remember monero...

Thank you user that is good to know. At first I didn't know I had to keep records, so I did my best to try and estimate values at certain times of day etc and then add them to bitcoin tax, and then have been adding every trade in there since.

Thanks for your help user

>You need to keep the following records for bitcoin transactions:
>the date of the transactions
>the amount in Australian dollars (which can be taken from a reputable online exchange)
>what the transaction was for
>who the other party was (even if it’s just their bitcoin address).

So as it says here, which is what a normal person such as yourself is going to be reading, you need a date and a reputable exchange. Your shitcoin doesn't trade against the aussie so you need to get a BTC price from somewhere using a consistent and reasonable method, there's a US3K range in prices right now...

Monero could be a useful tool for evasion but most anons have likely already fucked up and would have difficulty laundering down the road anyway. It's as good as cash and they've been busting commercial grade cash evaders since the beginning of time

how the fuck do you factor in airdrops like bch and btg?

that I have no idea, but i'm easy, tough to complain about tax on free money

glad i got all my btc from localbitcoins years ago via direct cash deposits
none of bags are linked to me personally and i haven't cashed out anything
good luck ato

Whats to stop me using a credit card like TenX or Monaco to buy shit in Aus to use my crypto? How will know government know I'm using it to tax me?

Of course this is a hypothetical situation where I've actually made enough to spend

you need KYC for tenX. dunno about monaco

living room of santoshi anyone? tracking Bpay-ments? doubtful.

>knock knock knock
>"Hello Sir, we see you've bought a $600,000 house, and two $90,000 cars this year, while still reporting an annual income of $60,000, would you mind coming with us to answer some questions?"

>
im talking about $10-20k per year

not sure if anyone will notice, lets say i have an income of $250k

how does an aussie set up bitcoins

> create an acount on indapendant reserve or coinspot
> put in your photo and adress id which takes 2 days to complete
> buy bitcoinsthrough credit card or polipay for coinspot
> sell