In Australia, the tax year is betweem Junes.
Here is the timeline of my income:
March 2020: I started investing in Crypto, about $50k savings. There was a huge upsurge, so the value of my wallet increased.
June 2020: Time to pay tax for 2021. So far I did not cash out of crypto.
2020 onward: My wallet crashed overall.
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The Koinly report for the 2020 captured the upsurge in my crypto worth and says I had $100k income and a $50k gain for 2020. Then the report for 2021, says I had a $5000 income and -$58k gain.
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Idk if I should use a different calculation setting or something for deciding what is a taxable event, but does this kind of report seem correct to you?
I mean, does that mean I have to pay tax for a momentary upsurge that I never directly benefited, and then when the prices drop there is no cash back or something? Hypothetically say I invested $10 in bitcoin and it goes to $10 million for a few month but I didn't cash out, but I have to pay for 10 million worth of tax, and then when the price drops back to $15, and I cash out only now, I just paid 10 million woth of tax for nothing? lol...
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