Monday, May 10, 2021

Moving Exchanges & Tax Implications

Hi all,

A bit of a noob question:

Up until recently, I'd been using eToro to buy Bitcoin and altcoins but have since realised that the spread is quite large and so moved to Binance Australia. I don't think it's possible to withdraw my eToro Bitcoin into a wallet. I was considering just leaving my current holding as is on eToro and buying more on Binance from now on.

However, considering that I'm expecting to have higher taxable income in the 2021-22 financial year, would it be wise to sell on eToro to trigger a CGT event this financial year? I'd buy back on Binance using the proceeds and potentially sell for profit next year. I'm hoping realising some of my gains before 30 June this year will reduce the total tax paid across this year and next year. Another option would be to just HODL to secure the 50% CGT discount.

Thanks!


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