AUS CRYPTO TAX

Just clearing up how the tax works for crypto in Aus from what I know so far.

>Only have to pay tax on the gains when converting from crypto to fiat, not on each altcoin trade

>Holding in crypto for a year halves the capital gain you pay tax on.
For eg. if you held 100 of some shitcoin for 1 year and it went from $10 to $1000 the actual capital gain is $99,000 but the realised capital gains that you pay tax on is 49,500

>The capital gains tax rate is based on your marginal income tax rate, hence it adds on to your income and gets taxed on that rate.

>Any transactions under that involve under $10,000 of crypto are tax free. From ato's tax website: "Where you use bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less." This means using a crypto debit card such as monaco won't be a pain in the dick since you won't have to record all transactions done with it, in case the ato comes after you.

>Mining any crypto is considered as income and needs to be added to your income. Any costs involved just as electricity are deductible costs.

If my dumbass has said something wrong or missed something out let me know below. Cheers.

Other urls found in this thread:

reddit.com/r/BitcoinAUS/comments/7n78a3/tax_megathread/
canadian.tax/bitcoin-tax/
twitter.com/NSFWRedditGif

bump

>>Holding in crypto for a year halves the capital gain you pay tax on.
>For eg. if you held 100 of some shitcoin for 1 year and it went from $10 to $1000 the actual capital gain is $99,000 but the realised capital gains that you pay tax on is 49,500

The wording in this portion of the ATO website indicates this is a property thing, not necessarily a capital gains thing, but let me dig it up again

Anons this is also another useful guide for tax treatment of cryptos.

reddit.com/r/BitcoinAUS/comments/7n78a3/tax_megathread/

ok scrap that, it is now saying "CGT asset" so seems applicable, good to know, as 2/3rd of my gains are from holding since June with no intra trading

>tfw canada
>all amount is taxed (though at 50% total), there are no tax free amounts
>all trades between cryptos are taxable events
>no change for long term capital gains
>they want you to declare if you hold more than 100k

Rip user, how will they know if you hold more than 100k though if you never declare? Is it just at that point where if you never declare while holding more than 100k and you cash out they'll screw you over for not declaring?

No idea, most of the rules for crypto from the government came out years ago and there is lots of stuff where they offer no guidance so I think most people just report it as normal capital gains since no one in the Canada Revenue Agency knows shit about crypto atm. I assume if they tried real hard they could find out everything from my initial purchases. From my understanding there are fines for failing to declare, but they max out at 2500 only which I would probably rather risk having to pay than letting the government how much I hold.

Making every trade between cryptos taxable is the real stupid thing though, it basically can force people to cash out to pay taxes if they wanted to be fully law abiding and if anything further discourages reporting.

I would probably feel better about paying taxes if the government wasnt fucking retarded with their spending.

>Making every trade between cryptos taxable is the real stupid thing though, it basically can force people to cash out to pay taxes if they wanted to be fully law abiding and if anything further discourages reporting.

That's my only gripe with paying taxes on crypto. If it weren't for that i reckon people would be alot more willing to pay taxes on their crypto since its only declaring 2 transactions instead of the 100's and maybe 1000's that you made. Would be hell for a day trader.

Doesn't this post imply shitcoin trading incurs capital gains tax?