Smoky bandit said:
As long as no profit has been deposited to your bank then there's no need to do anything. :Y:
Not quite right there Smoky, each time you dispose of coins such as swap one type of coin for another or sell a coin and convert back to AUD that is considered as a disposal and creates a CGT event, whether it is either a loss or a gain. It doesn't matter where the AUD is held it's actually the disposal of the coin that matters, which can get extremely complex when you trade one type of coin for another.
CGT isn't a separate tax, any capital gain minus your cost base counts as income for that year and you pay the relevant amount of tax on such gains relevant to your tax bracket, for example it could even push you into a higher tax bracket. If you hang onto coins for more than a year and make a profit you are entitled to a 50% discount on the CGT amount. It's basically the same if you sell an investment property. If you make a loss it can be carried forward to offset for following years capital gains.
I never really knew about all of this until I started reading up on it recently, I'll be using the crypto tax calculator to work mine out, I have made a small loss and won't be liable for CGT but will still need to generate a profit and loss statement as I swapped coins quite a few times, the ATO are taking the fun out of it though.
Even if you've only made $1 dollar in profit the ATO are still after their share.
A CGT event is created only when you sell/dispose crypto's not while you HODL them, you could hold them for 10 years and the ATO are only interested once you dispose of them.
That's why Keitzy is saying just hold them and only sell when you want or need to cash out.
There are other rules also such as disposing of less than $10000 worth of coins to buy goods or services and it is then classed as a personal use asset and not taxable under certain circumstances if you weren't trying to make a profit.
Confusing? Hell yes.....
