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
Other urls found in this thread:
micky.com.au
twitter.com
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.
That is obviously not how it works.
Capital losses are taken into account, clearly.
they want 50%, sorry to break it to you
still don't get it you never had $8 you don't made any gains until you cashed out. this is retarded.
crikey not me dollerydoos! it's not real money bro, who cares?
So your capital gains is 100k -8k lol it's not hard
It's really obvious. You fiat onramp $1000. You convert all of it to btc. You trade btc for a shit coin. Shit coin 10x's. You sell for btc. You now have $10000 worth of btc. That's a gain because you have grown in value.
Each loss you took also counts, if you made money on one trade but then lost the exact same the next it cancels out.
Plus if you completely fuck up and go below your initial investment you can carry that forward for a few years resulting in a lower income tax.
You guys don’t understand, they tax you based on crypto to crypto transactions, not when you cash out. I’ve calculated it using koinly.
I literally have to pray for the golden bullrun at this point, but everything is fud right now.
Or I pray that the ato doesn’t come after me until I cash out if that ever happens.
>they want 40% of the capital gain you made.
You can offset it with your losses. Get a fucking accountant.
it will be better for you if you report it on your own.
otherwise they will get your tax evasion, if you reported it first you will have to pay less.
Do I need to keep track of all gains and losses? I do anyway on blockfolio but seems like an effort at tax time.
Can I just say 20k up .'. pay tax on 20k?
Yeah but you have to sell again at a loss. If you hold to the ground like a dummie then you are fucked
you are panicking because you don't understand how taxes work
you only pay taxes end of year on the total PROFIT for the YEAR
never on any given trade when you made the trade you exchanged on value parity. that's what bugs me how can they say you made profit on the trade?
Are you still holding whatever you've taken a loss on? If you sell that you'll have capital losses to offset the gains. It's really not hard to understand.
Also worst case is you go on a payment plan to pay taxes.
because crypto to crypto trades are considered cgt events, did you not read op's post?
This user is correct. Stop panicking for a moment and just think. Or watch a couple youtube videos or something. You pay taxes at the end of the year on PROFITS.
Your trades throughout the year are the sum of your gains and your losses. You have to factor in your losses as well. You didn't use the calculator correctly.
CGT in Australia is averaged across the financial year, they only care about your net gains/losses during a period.
Net capital gains = capital gains - capital losses. Assuming all of this occurred since July 1st, you had $292k capital gains, minus $200k capital losses, equals $92k net capital gains that you are taxed on.
As an individual, you will add that $92k onto your taxable income, and pay whatever your marginal rate is on it.
If your gains occurred before July 1st, and you've since made all your losses, you could be mega-fucked, because you would owe huge taxes for the previous financial year. You'll at least be able to still claim your losses, but you can't retroactively apply them to previous years.
taxes are retarded by default but this is the most retarded shit i ever read about.
thankfully in my country i don't have to pay anything until i cash out even then i'm not obliged to keep any records past 5 years. so simply not cashing out for a few more years and maybe bitcoin debit card will solve this problem for me. not paying any fucking tax. they did not shoulder my risk they are not getting my gains.
how the fuck did u turn 8k into 300k
> 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?
Yep. This is why I have never bothered to start trading here. Swing trading over months and years is fine. CGT drops after holding for a year but but the market is volatile and the profit to be made can only be made within a few hours or days. Any ambitious Aussie should seek to move out of this country and go to the US. This country is in decline. It relies on taxing consumption rather than production and it's economy is a house of cards (education, housing, mining). All of which are in decline. A pack of smokes cost $40 ($28 USD) but cost $8 in the US ($6 USD). Taxes on luxury cars, booze and other property are ridiculous.