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Morty

XRP a "personal use" item. (for tax reasons)

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the ATO works on fear

ive been bugging the **** outa them in livechat last few weeks throwing their rulings back at them to determine any advantages for me

 

 

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1 hour ago, fiik said:

the ATO works on fear

ive been bugging the **** outa them in livechat last few weeks throwing their rulings back at them to determine any advantages for me

 

 

Have you found any advantages yet? 

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There are no advantages, I have discussed with my C.A. and ATO to lengths. It's very complicated, the post you quoted earlier from ATO reply @Morty is not clear. Crypto currencies won't fall under personal use CGT for bigger expenses.

The only advantage I see is the $10,000 spend in a financial year for items of personal use which will exempt from CGT. Second is to hold the asset for over a year, for loopholes there are numerous ways but always have a risk.

The best I think and anyone can correct me here is:

Buy Monero from Australian exchanges, do trading and increase position or whatever for as long as you like and then convert back to Monero before cashing out. However you will still have to pay CGT but won't be paying tax on every trade which is cumbersome and doesn't make sense all the time.

For some small expenses and this one has more risks:

You can use offshore exchanges(no KYC/AML checks needed) and sell your holdings via Localbitcoins for cash in small amounts. There are dealers who offer over $100,000 transactions as well but its up to the person if they can trust some stranger with that kind of transactions.

https://localbitcoins.com/country/AU

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29 minutes ago, Invincible said:

Buy Monero from Australian exchanges, do trading and increase position or whatever for as long as you like and then convert back to Monero before cashing out. However you will still have to pay CGT but won't be paying tax on every trade which is cumbersome and doesn't make sense all the time.

CGT 50% discount may be applicable:

However, if you hold your cryptocurrency as an investment for 12 months or more, you may be entitled to the CGT discount to reduce a capital gain you make when you dispose of it.

 

CGT discount method

Eligibility: For assets held for 12 months or more before the relevant CGT event.

Not available to companies.

For foreign resident individuals, the 50% discount is removed or reduced on capital gains made after 8 May 2012.

 Description: Allows you to reduce your capital gain by

50% for resident individuals (including partners in partnerships) and trusts

33.33% for complying super funds.

 

Also, any GST on trades is claimable as a deduction also iirc

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6 minutes ago, fiik said:

CGT 50% discount may be applicable:

However, if you hold your cryptocurrency as an investment for 12 months or more, you may be entitled to the CGT discount to reduce a capital gain you make when you dispose of it.

 

CGT discount method

Eligibility: For assets held for 12 months or more before the relevant CGT event.

Not available to companies.

For foreign resident individuals, the 50% discount is removed or reduced on capital gains made after 8 May 2012.

 Description: Allows you to reduce your capital gain by

50% for resident individuals (including partners in partnerships) and trusts

33.33% for complying super funds.

 

Also, any GST on trades is claimable as a deduction also iirc

Sorry I didn't mention the 50% discount on CGT if you hold over a year but I did mention to hold it for over a year as an advantage :)

 

49 minutes ago, Invincible said:

The only advantage I see is the $10,000 spend in a financial year for items of personal use which will exempt from CGT. Second is to hold the asset for over a year, for loopholes there are numerous ways but always have a risk.

 

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