Thursday, July 22, 2021

Is it possible to hold/trade crypto for someone else and not be liable for tax or gain an exemption?

a few years ago i bought some bitcoin for a friend on their behalf, they were not comfortable trading or holding it securely. they asked me to do the trade for them and keep it safe.

i shouldnt have done this as im now on the hook for a CGT event when i finally transfer to him. when my friend wants the bitcoin back to sell to AUD. it will be a CGT event in my name i.e. the bitcoin transfer, not selling it to fiat.

is there anything in the tax laws to allow trading on someones behalf? by that i mean any CGT event is directed towards tehm when i moved the bitcoin to his exchange wallet to sell.

The only thing i can do is gift the bitcoin to him, by doing so, when he receives the bitcoin he can establish a cost basis of the value of bitcoin on the date of reciving it. if he sells for AUD at the same price he pays no tax. but doing this means i'll still have to pay the CGT. he's agreed to pay me what im liable for in tax, since we both didnt know about the tax laws at the time.

i doubt this exists, but wondering anyway; is it possible to trade crypto/shares on someones behalf where by any cgt events are delegated to them?


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