Guys, I think I’ve fucked up.
I was trading my way up during the defi run, went from $8,000 to almost $300k at the peak (usd) now I’m back down to 100k usd, but have 70k in tether.
The problem is my trades on the way up, each trade in Australia is a cgt event and they want 40% of the capital gain you made.
What happens if I owe more in capital gains than my holdings?
Australia is fucked. How are you supposed to make it here?
At the moment, I’ve never received a letter from the ato, but I feel like it’s inevitable down the track. I’m happy to pay tax when I cashed out, but now unless we get a proper bull run or I make a fluke trade I could possibly be fucked.
I’ve thought about buying Eth or Btc instead of risking it on alts and trying to wait it out, but I just can’t believe how unfair it is to be in this situation.
I read about fellow biz fags doing this in 2018, now I know how you feel.
Advice would be appreciated, moving overseas isn’t an option as I’ve got a family here with kids.
Im financially ruined
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was it 300k in crypto? and i think if you lose money on it it’s considered a capital gains loss
That's why selling at a loss isn't always a bad thing. You will offset your gains
okay explain this to me how exactly you making any "gains" on a crypto to crypto trade?
you can always only exchange on value parity sans slippage. and the fees usually guarantee you are at et loss on any given trade.
You can count the capital gains loss too if its in the same year.
So bought 1 btc at $1 and sold at $2. $1 capital gain.
You then bought 1 link at $2 and sold at $1. -$1 capital loss.
That cancels out your gain.
The problem is the amount of Profitable trades I made on the way up. I have to pay 40% of each profit I made. Now that total value is worth more than my holdings because of the market dump. I’m literally so depressed and scared now of losing everything I have.
i still don't get it still don't undertand the concept of "profitable" trade before cashing out you have absolutely no profit only exposure.
not if you lose it retard
Say you buy 1 UNI for $2aud. Then, when UNI goes up to $10, you exchange it for BTC. That means you gained some satoshis but you also gained $8. This is the amount the ATO uses to determine your capital gains. But then, BTC goes down in price and now your satoshis are worth $1. You are actually losing $1, but owe a percentage of the $8 in taxes. It blows. Just hold. Australia is cucked mate. Frydenberg is a jew and scomo is a muppet.
Bitch you literally can't have more tax on gains than gains you made. If you never realized those gains by converting into cash then you don't have to pay taxes on them. I don't know how the government can tax unrealized gains. Either way, whatever the idea for their gain was is the same way you can possibly write up losses.