Crypto Myth - I'll only pay tax when I convert it to Australian dollars

Crypto myth #1: “I’ll only pay tax when I convert it to Australian dollars”

Cryptocurrency is like a currency. You’re not going to get taxed until you take it back out completely to Australian dollars.

The timing of the tax event (or when you get taxed), is when you dispose of that asset or currency. So, if you sell Bitcoin back to Australian dollars, that would be a potential taxing point. But if you sell Bitcoin into Ethereum or any other coin, then that would be a tax event as well.

If you sell services, run a business, and you’re paid in Australian dollars normally, but you get a bill paid in Japanese yen, then you will still need to pay business tax. You can’t avoid it because you haven’t taken it out in Australian dollars.

Download a FREE copy of the Cryptocurrency Tax PDF at https://info.inspire.business/cryptocurrencytax

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