e.g.
Buy 1 BTC for $1000
Buy 1 BTC for $2000
Buy 1 BTC for $3000
BTC price rises to $5000
Exchange 1 BTC for 1 BAT, BTC is worth $5000
How much capital gains is taxable? Is the cost base an average of the unit price i.e. $2000 ($1000+$2000+$3000 divided by 3 = $2000). So my capital gain is $3000 if I sell 1 when its worth $5000 and I bought for $2000 (as an averaged cost base).
Does this make sense or am I getting it wrong?
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I don't know if its first in or last in
capital gains in 30% of profit
so if its first in you would owe 30% of our $4000 profit $1200
or if its last in you would owe 30% of your $0 profit $0
Are you taking the piss? We don't pay capital gains on crypto to crytpo trades in this country. Sort yourself out cunt.
All long term? held for more than a year?
You track every transaction from one currency to another. So from fiat to BTC, from BTC to BAT, every transaction tracked and reported including dates.
Then you report what your total fiat investment was and what your profit over that fiat was in total as of the last taxable transaction.
So if your last transaction was BTC to BAT and your initial investment was $1000 with your BTC's and BAT's converted fiat value being $5000 AT THE TIME OF THE TRANSACTION you would report $4000 capital gains profit as the transaction from BTC to BAT is considered a taxable event even though it didn't result in fiat.
Basically you have to keep tight records of your trades unless you're planning to try and dodge taxes and you should be careful about trading between cryptos because you get taxed even though the funds are still tied up in crypto rather than liquid fiat. Just make sure you have enough money aside to cover the tax on that $4000 profit or try to hide it (though I wouldn't recommend that, it's much harder to hide crypto profits now that the government is fully aware of crypto as a market).
If you're talking about Australia, yes we do.
You pay capital gains tax on crypto under the same rules as stocks here in australia.
but he bought a btc at 5k can't he use that one as the btc sold for bat?
Not in Australia dickhead. Go ask the ATO, even they admit they can't track exchange history. They just want you to pay capital gains when you cash out into fiat. I'd post the link but I'm a lazy cunt, and you're and even lazier cunt for not knowing in the first place.
you're in for a surprise
They can't track it does not mean it's not taxable.
It just means they can't track if for you and by not reporting it you are committing tax fraud.