FAQ?

When do you have to pay capital gains tax on crypto?

At the end of the financial year 2022, John will report this gift, and if he has an overall profit from crypto trading during 2021, he’ll have to pay capital gains taxes. How is receiving crypto as a gift taxed?

What is the tax rate on crypto?

This rate will largely depend on how long you’ve held the crypto. Whether you have sold crypto for more than you bought it for, traded tokens, or used Bitcoin to purchase an item, your assets are classified as a capital gain. Earning crypto as a form of income is another taxable scenario and is taxed differently than capital gains.

Is gifting crypto tax deductible in Australia?

The ATO is clear that Australia views gifting an asset as a type of disposal, this means gifting crypto is subject to Capital Gains Tax in Australia. However, while gifting crypto to your family and friends is subject to Capital Gains Tax, if you’re donating crypto to a deductible gift recipient (DGR), this would be tax deductible.

Can I gift Crypto to reduce my tax bill?

Can crypto gifts reduce my tax bill? Many investors use gift allowances to optimize their tax position. For example, when gifts are tax free to spouses and there is a personal capital gains tax allowance or a partner with lower income in the household - you can gift crypto to reduce your overall tax liability.