Cryptocurrencies.. whos in it?

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Re: Cryptocurrencies.. whos in it?

Postby heff0018 » Sat Jan 13, 2018 8:35 am

Hi all, interesting concept this. When I started reading this thread I had no idea what you were talking about but with a bit of research I think I have finally worked out the value generated by data mining. I can’t offer any input on data mining techniques but I can clear up some of your tax queries.

There is no difference between that tax treatment of crypto currencies and data mining compared to other investments and activities. If you are investing in crypto currencies then there will be capital gain or loss when you sell the currency and if you hold the currency longer than 12 months then you can apply a 50% discount to any capital gain. I.e currency cost $1,000, you sold for $2,000 12 months later. Apply 50% discount and you are assessed on a net capital gain of $500 which is added to your assessable income and taxed at your marginal tax rate.

The CGT personal asset exemption only applies if the cost of the currency is less than $10,000 and you use the currency for day to day transactions rather than as an investment.

Regarding the data mining activity, unless you are just doing this for a bit of fun (hobby) as some have stated then the ATO would most likely look at this as a business activity. Therefore capital gains do not apply and you would be assessed on the net income of the business activity. The purchase cost of the equipment under $20,000 could be written off as an immediate tax deduction under the current depreciation rules and the business portion of your electricity costs and other expenses deducted.

There is no GST on capital gains/losses. GST is generally charged on business transactions within Australia but you do not need to register for GST if your business turnover is less than $75,000.

I am not sure what the ATO audit activity is regarding crypto currency but my guess is that it would be quite low.

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Re: Cryptocurrencies.. whos in it?

Postby Tazzi » Sat Jan 13, 2018 3:33 pm

Good to hear about the above. Seems to be a topic thats not well covered anywhere.

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Re: Cryptocurrencies.. whos in it?

Postby immortality » Sat Jan 13, 2018 3:50 pm

Must be an accountant in da house.

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Re: Cryptocurrencies.. whos in it?

Postby heff0018 » Sat Jan 13, 2018 6:57 pm

immortality wrote:Must be an accountant in da house.

Yep, tax accountant. ATO website is shite.


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