How does trading tokens work in terms of CGT under this scenario;
>Previous tax year: Purchased 100 tokens @ $1
>Current tax year: Purchased 100 tokens @ $15
>Current tax year: Sold 100 tokens @ $10
Is that 100 token sale @ $10 considered a capital gain of $900 due to the oringinal 100 tokens? Can the $500 trading loss be used to off set it seeing as between the two trades you made a loss, not a gain?
How the fk does this shit work; t.brainlet
>assuming same token
pls frens
From what I understand is every time you buy a cost basis is established for that transaction.
Each transaction has their own cost basis so if you were to sell 100 tokens then you have $900 capital gain.
If you were to sell the next 100 tokens then you have a $500 capital loss which can offset the previous capital gain.
I use koinly to record transactions and calculate this for me
So can't you just swing on aave going from say, link to alink to link back and forth to swing trade in reverse? Token to token right? Seems like a neat hack for free capital losses and the token is 1:1 for each other so no real risk involved of one mooning against the other like if you tried to wash trade with btc or eth and price yourself out.
man fuck it brah, dont withdraw til next year minimum once the country gets outta lockdown, then go to an accountant and then airport
aus is lost
Google FIFO and LIFO accounting methods for basis. You can choose either one if you've never filed before. Once you pick one, you have to stick with it forever.
If you buy a trading commodity and sell for a loss, then buy back in within 30 days, you cant count it as a loss
I'm unsure if the ATO would see that as a wash sale and exclude any capital loses you make from doing that.
They haven't given a clear answer if wash sales apply to crypto.
They don't apply in the US
If they count alink as a trade I am financially ruined for certain..
Pay your taxes user. Use a crypto tax attorney.
Make sure you keep exposure to C42 mid - long tho.
Can Australian's use LIFO? I get some sites that say yes, others say no.
Just get koinly it automates everything and makes it ago ready. I actually use it for portfolio mgmt now
You claim the purchased tokens as a business expense. All business expenses negate tax by how much they cost.
So that would be -1,500k from buying and + 1,000k from withdrawing.
This means you're still 500$ of income under to be taxed from it or that you can make 500$ and still pay nothing.
This is all assumed that you're running it as a sole trader.
Otherwise I believe you can earn about 14k or so income outside of your job without it being taxed if I remember right. Otherwise it's like 70k tax free for sole trader.
Also don't forget if you hold for over a year your CGT get's halved
Are you Aus? Australia only permits FIFO from my research which means I am fucked and every sell I made this financial year is getting slammed with CGT with no losses to offset despite actually making a trading loss.
what happens in this scenario:
I put $10,000 in and now it's worth $20,000
I cash half of it back out to $10,000 and keep the rest in crypto land. Have I incurred CGT? What do i do?
Is koinly considered a registered tax agent though? if anything is wrong, even if it's just a teeny mistake, the ato can fine you for not taking due care
you need to go to ato gov au / swingersGetRope
You base the tax on the profit of the asset. You buy 100 coins and the coins double in value. You sell 50. You pay cgt on that amount of fiat from the sale, minus the amount the 50 coins cost you in the first place. So you probably pay cgt in your situation on $5k.
What I don’t understand is if you are buying every month the same coin for 18 months, how do you determine, if you’ve held a portion of those for over 12 months, which assets you are selling so you can gain a cgt discount. I believe if you sell the whole bag you use cda to calculate profit for tax purposes. But can I get the tax discount on some of the profit?
Can but almost certainly won't. They are way more interested in getting their due than going hard on people
What if I’ve accumulated over 18 months, buying 100 once a month, then sell the whole bag. Do I cda the first six months volume in the sale for the discount, then cda the rest and pay cgt at a full rate?
You’re right. Unless your evading tax, they will just say you fucked up, review your return and send you a bill. If there are any fines they will probably be remitted once you pay the tax bill. They are added their to strong arm you into paying or entering a payment arrangement on the debt.
Stfu you fucking ato glownigger faggot. Be happy with whatever you get you fucking literal kike
can you stop posting these treads about aussie crypto tax for fuck sake. ive been in crypto for 3 years got 6 figures never cashed out or payed a single dime in tax, just stop worrying about stupid irrelevant shit in your life mate
How the fuck will they even know if you’re trading on a chink exchange or dex. They should just take 40% of whatever people cash out and be grateful. It makes me fucking sick that they even expect that much
So what’s the point of your internet wealth if you can’t use it irl. This is retarded, some of us wanna buy a house or sex cult commune
How much should I be making before I report my earnings to the ato? say I made $500 should I declare it?
Absolutely not
only if they know you have it
>trying not to lose money because the taxman is evil and will milk me for all i'm worth
>ShUt Up aTo
you're an idiot user, enjoy getting a fat fine on your gains because you were too lazy to ask
Depends i guess. If you onboard cash through a kyc exchange in Australia or country we are friends with or withdraw some they can probably ask for more detailed info on if you made trades/transfers. If you move it off to a wallet you know they can see you hook it up to a dex and what comes back into the wallet. Half the time they will just make an estimate based on patterns and ask you to prove otherwise