Forum Topics No CGT on BTC???
lowway
Added 7 months ago

Interesting snippet from the Independent Reserve newsletter today.

No CGT on Bitcoin?

Aussie Bitcoiners may be eligible for up to A$1 billion (US$645M) in capital gains tax refunds following a court ruling that Bitcoin should be treated as money rather than an asset. The Australian Financial Review reports the decision arose out of a case concerning Federal Police officer William Wheatley, who is alleged to have stolen 81.6 BTC. His lawyers argued Bitcoin is information rather than property, but Victorian magistrate Michael O’Connell said Bitcoin is more like Australian dollars than foreign currency or gold. The decision flies in the face of the ATO's tax treatment of Bitcoin, which requires CGT to be paid on every trade. Wheatley's lawyers have appealed the ruling.


Me again!!

Obviously, don't take this as financial advise or even a suggestion. I doubt the ATO will just roll over on what they think is a CGT triggered event.

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thunderhead
Added 7 months ago

Very interesting. But yes, I wouldn't expect the ATO to relent on clipping the ticket on crypto either.

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BigStrawbs70
Added 7 months ago

If this ruling is upheld on appeal, I'm fairly confident the necessary legislation would be passed to classify Bitcoin (and the sh%t coins) as property. The income for the government is just too high, and will only increase, to ignore.

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Saasquatch
Added 7 months ago

https://x.com/Dale21M/status/1924742058771980773?t=iBmkLUJh-i-oXneBALB31A&s=19

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topowl
Added 7 months ago

I'm not sure that we shouldn't just dump the current CGT and go back to pre-howard indexing of the cost base.

It's massively tilting the playing field towards investors.

Totally screwing this country up.

#humpdayhottake

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lowway
Added 7 months ago

Yep, I reckon that X post says it all @Saasquatch

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tomsmithidg
Added 7 months ago

100% @BigStrawbs70 , they will definitely legislate to close that loophole. ATO can make its own ruling in the meantime anyway and then some punter would have to take them to court to contest it based on the above mentioned precedent. The next judge, on that tax matter, can take an opposing view and the punter is right back to square one. I don't like the chances, Bitcoin is more similar to gold (other than the fact Gold has both physical form and practical function while BTC it has no value other than what someone else will pay for it - sorry @Strawman , though I guess that is true of almost everything including cash which only has the value that society and the system nominally agree to), than it is to money. Like gold, BTC has (in most cases) to be sold to realise value and purchase things, and that value is determined via 'monetary equivalency'.

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BigStrawbs70
Added 7 months ago

Ha @tomsmithidg dg While there are many discussion points that come to mind from your post, I’d just for now suggest that Bitcoin has a number of properties that make it a unique offering, which, in turn, make it very valuable. Yes, today I need to turn my Bitcoin into fiat to grab a slab of beers, but Bitcoin’s uniqueness is the game changer. I appreciate how this sounds to some folks, but as per my earlier post today, I can only suggest doing a bit of research before anyone discounts that we are (and I mean this literally) starting to see the acceptance of a new form of money.

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