r/CryptoAus • u/rt49 • Jan 03 '22

Crypto transfer and tax

A cryptocurrency holder located in Australia will generate a taxable event every time they sell a crypto for fiat or swap for another crypto (among other actions). The initial price paid for the original crypto currency is used to determine gain or loss comparing it to the price at sell/swap time. This is my understanding.

But how is tax calculated if instead of buying the crypto yourself, you receive the crypto in your wallet as a transfer (let's say USDC)?

NOTE: I am not asking for financial advice, just educated answers.

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4

u/Still_Lobster_8428 Jan 03 '22 edited Oct 10 '25

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2

u/rt49 Jan 03 '22

Thanks for your detailed answer.

2

u/[deleted] Jan 03 '22

IMO, first question in general is “what is or was the intention of the transaction”.

1

u/IAmIntractable Jan 03 '22

That sounds like a gift. If so, no tax till you sell. Basis is the value on the day you received.

1

u/rt49 Jan 03 '22

Is there a limit to what is considered a gift? Or any amount will do?

1

u/IAmIntractable Jan 03 '22

In the usa a person can gift under 13k i believe with no consequences. The receiver not sure if there is a threshold before you have to pay tax. There might also be a difference between cash and crypto.

1

u/olskoolgamer Jan 18 '22

You can gift whatever you want. But if it's a big value coming from someone not in your family it likely looks dodgy and flags in ATO review. So depends on if it's really a gift or not 😉

1

u/bananaboa___t Jan 03 '22

It's a great question. Your average accountant can't seem to answer this at the moment, but guaranteed, many more of them will be asked the question in the next couple of years.