Hi to all Australian accountants
I do advocacy work and sometimes receive cryptocurrency as a gift from friends
From discussions with the ATO and reading on the ATO forum, it is my understanding that I still have to declare the gift on my tax return when converted from the gifted crypto into AUD currency and as crypto is a capital asset, a capital gain/loss event is triggered when I do that conversion and sell my cryptocurrency gift for AUD.
My understanding is the tax liability falls with my friends who gift the cryptocurrency and they have to handle it with their overseas respective tax authorities. In regard to tax implications on my end, my understanding is that the market value of the cryptocurrency gift given to me at the time becomes my cost basis and when I sell it, if I make a gain that's the only tax I pay on that gain, and if I make a loss then its a capital loss.
My only question is record-keeping so I can prove to the ATO, should they ask, that it was a gift and not payment or transactional. What records I'd need to keep on hand beside my cost basis. thank you
See forum that I am referencing my knowledge on: [login to view URL]
[login to view URL]:~:text=If%20you%20gift%20a%20cryptocurrency,capital%20loss%20on%20the%20transaction.&text=It's%20viewed%20that%20cryptocurrency%20is%20neither%20money%20nor%20foreign%20currency.,-Cryptocurrency%20is%20considered