What is the best way to convert crypto into to actual money - to transfer into Australian bank?
Crypto - Best Way to Get Your Money to Australia?
Kassa on 13/05/2021 - 10:00
Last edited 13/05/2021 - 10:33 by 1 other user
Last edited 13/05/2021 - 10:33 by 1 other user
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do we have to report income to ato
Did you make a captial gain on an investment?
Yes
With few exceptions, all selling of crypto is a Capital Gains Tax event, so yes, My crude understanding (not tax advice) is you'll need to record how much you purchased that crypto for (in equivalent aud), how much you sold the btc for, the difference is the taxable amount, the tax is 30% unless you've held onto it for a year, at which it's 15%.
I'd be very shocked if livingroomofsatoshi.com isnt providing data to ato.
https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-c…
the tax is 30% unless you've held onto it for a year, at which it's 15%
This is not correct, the tax is whatever marginal tax rate the OP is on, unless it’s been held for at least a year, in which case the capital gain is discounted 50%. If OP has no other income for the year and the gains are less than tax-free threshold, tax rate is 0%. Conversely if OP is a high income earner on top marginal tax rate, then the tax rate on those crypto gains would be 45%, plus Medicare levy.
Either way, it’s not a flat 30% or 15% tax rate.
@technix: All good, rest of your explanation was pretty close, just didn’t want people to think it was a flat tax rate that would be applied to the crypto gains.
discounted
The person who first described this system as a "discount" and got it to stick is a genius
Oh benevolent government, thank you for giving us this discount it we hold the asset for 12 months!!
Sounds much better than a capital gains tax penalty if it's held less than 12 months.
@happydude: Seeing as I’ve had to deal with the old way of discounting capital gains from the early 90s of applying CPI increases/decreases to the cost base, comparing that way with this straight 50% discount, the current way is much easier and also has more financial benefits
Or are you of the opinion that capital gains should be taxed even less/more concessionally than it is now?
@Kenb0: They should go back to the CPI indexed method. The 50% discount encourages such things as increasing property prices and also makes negative gearing more lucrative.
@Kenb0: Are only aud<->crypto transaction considered capital gain event?
Does crypto<->crypto transaction need to be declared? Would ATO care for it?
@rake: yup, crypto->crypto still counts as a CGT event, and ATO want to know about it, and tax paid if any profits made on that transaction.
@Kenb0: Thanks.
Interesting - that might be a lot of transaction and I wonder how one figures out if its a gain or not?
BCH vs LTC for example.
2018 -> 1 BCH ($2025/ea) buys 9 LTC ($225/ea).
2021-> 9 LTC ($450/ea) buys 2.45 BCH ($1650/ea)Does that mean I made a profit of 1.45 BCH or the converted AUD value at time of the transaction? Either way, I haven't converted them to AUD yet, does ATO still want to tax %age on 1.45 BCH gain?
@rake: converted AUD value at time of transaction. Both cryptos will have their own value in AUD when you buy/sell. If the value for the crypto you sell is more than you bought it for, then you've made a gain, and you're supposed to pay tax on it. If its less, then you made a loss, and can use it to offset any gains.
@rake: If you want more indepth info on it, here's the ATO link:
https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-c…
There's some examples of what they consider, etc..
yes any profit is added to your normal income, but only 50% of it if held for more than a year.
Getting out as no longer able to buy a Tesla with it?
https://www.abc.net.au/news/2021-05-13/tesla-suspends-bitcoi…yes probably he is planing to bring his own coin
No indication of that within the linked article
More likely Elon is trying to manipulate the market again.
Elon is full of it.
If he is concerned about energy use he should haven't have bought in. That is like knowing Hummer is a gas guzzler and buy one then saying you won't buy anymore due to fossil fuel concerns but you won't be selling. Elon is smart at money making that is for sure.
Like I said before. Maybe if he is so concerned he won't be selling emission credits to manufacturers of ICEs (let them get fined and go out of business) but then we won't do that either. I am pretty sure SpaceX isn't burning renewable fuels. Mars is plan B because fixing the earth is too much hard work.
He is Tweeting so much about Doge why is Tesla not accepting Doge?
Elon is a man of contradictions. In isolation he can explain everything away.
Maybe he's going to start accepting Doge instead of BTC?
Could be true. Tesla could have bought a lot when it was very low and price hasn't lifted enough to report it as a material item. Who knows.
The only reason he can talk crap about crypto and not get in trouble is because it isn't a regulated security. Imagine if he says Doge at $1 locked in funding secured like he said Tesla was going private.
I was wondering what caused the drop this morning.
If it turns out he's been holding huge amounts of Shiba and Doge this whole time and profiting, surely there has to be repercussions. He's already been called out on manipulating the market via tweets with Tesla shares before.
I don’t know about Elon but the idea of the burn happening to Vitalik who then sold his coins and donated around 70 million to charity is nice.
https://www.theblockcrypto.com/post/104676/vitalik-buterin-d…
How does one buy shib easily?
Ha..so he just potentially ruined many 'all in' investors lives…to donate to charity.. This guy probably shouldn't be holding the keys to the kingdom!
@tunzafun001: They burned the coins as a marketing exercise so they could say "Look, even Vitalik holds DogMemeCoin" to give it a ring of authenticity. It's the same mentality that would-be fashion brand developers gift a free hat to a celebrity because they want a picture of <Celebrity> wearing a foam trucker hut with their logo on it.
Of course, the celebrity throws the hat in the trash because they don't like people making unsolicited profits via associating with their personal brand. So too with Vitalik. "I didn't ask for this. I don't want or need it. Into the trash it goes". If someone refusing to accept an unsolicited gift is ruining investors in your business model, you don't have a good business model.
Amazing how the ecofascists never mention that all the banks in the world use 20 X more energy than bitcoin mining in the moral equivalency virtue signalling.
Without necessarily accepting the 20 X claim, I would note that “all the banks in the world” actually form the backbone of the world economy. As for crypto, Elon Musk is just proving it’s little more than a plaything for spruikers and their ‘clients’
"As for crypto, Elon Musk is just proving it’s little more than a plaything for spruikers and their ‘clients"
No different to what wall street and the 'backbone of the world economy' do 24/7.
Crypto, the 'plaything' you deride is now worth more than all US dollars currently in circulation.@hueylewis: The world economy supplied your breakfast. You may feel cynical about some aspects of it, but your comparisons are utter nonsense.
@BigBirdy: I am cynical about all of it.
Not selectively as you are.
My comparisons are utter nonsense? Unlike yours?
I supplied my breakfast this morning.
Speaking of which, did someone pee in your wheeties this morning to trigger you?@hueylewis: I didn’t make any comparisons, and you wouldn’t have Wheeties without said world economy. You do appear to be an attractive proposition for those spruikers (aka influencers).
@BigBirdy: Compaisons, opinions if you want to split hairs.
My free range chooks supplied my breakfast this morning.
"Wouldn't have weeties without said world economy"
So now crypto is not part of the 'world economy?'
I must have missed that one.
Take a look at any one of the financial channels or any media outlet and tell me that the garbage they push to pump and dump stocks is any different to these any other spruiker or influencer.
Heh heh, and you try to make out that I am the naive one here?
What IF, we take the money and invest - start a company - didnt earn a profit…. it will be invested
If you sell crypto and get AUD in return, that's the capital gains event, there's your profit right there. If you use that AUD to then start a business, that will be a separate issue.
Easiest way is to transfer to a local exchange like BTC markets, sell then deposit the AUD to your bank account. I have done this plenty of times before and they are quick to deposit into your bank account.
However consider another option. Take a look into Crypto.com they have a free tier Visa card you could load your crypto onto the card and just spend it. The free tier card is 1% back on purchases in their native token CRO.
Take a look at it and if you have any queries I would be happy to answer them, just PM me as I might not catch them here.
Coinspot usually deposits funds into CBA account within an hour. Not sure how it is for the other banks. Haven't tested how long Binance takes while BTC Markets took about a day and half last time I used it but that was 4 years ago.
A question for those that more to date with crypto tax. Since its counted as part of annual income tax If you have a registered business thats non-crypto related can you purchase equipment (new PC/Cameras) to reduce that tax like that $20k small business asset instant write off or other means?
The easiest way seems to be to convert into litecoin or some other commonly accepted currency that doesn't have high transaction fees and then use it to buy things like subscriptions.
You can also try your luck on aliexpress as some sellers accept cryptocurrencies.
Other information:
https://newsroom.paypal-corp.com/2021-03-30-PayPal-Launches-…There are also some more dubious ways to use your coins which include finding someone on the darkweb who will ship stuff to you.
Hands down easiest/fastest way is to use livingroomofsatoshi.com but you just get an exchange rate that no doubt includes a decent premium. I use it for amounts under $1k