Michaela Rankin Q&A – Crypto Taxes & Accounting
QUESTIONS & TIMESTAMPS:
0:20 Is there any way we can find this information from the United States perspective?
0:50 If I buy BTC, it goes up and after a few months I use the BTC to buy Ether and it goes up, and I sell the Ether for fiat, how am I taxed and what records should I have?
1:55 Can you talk about PSI if earning crypto income into a trust?
2:49 If you already have a discretionary trust in which you already operate a normal type of business – are you suggesting you need to start a new discretionary trust that is only registered for the purpose of investing?
3:47 How does one move the personal crypto accounts to a business?
5:28 My existing crypto portfolio has been transferred to the trust. I’m the sole director and the only beneficiary. My marginal tax rate is 45%. To minimise tax, would it be good to create a bucket company to hold the profit to future distribution? Are there any disadvantages of being the sole director and the only beneficiary? What’s the tax implication?
7:45 Does this advice on SMSF relate to other transactions like Forex or is this purely related to crypto?
8:55 With a trust I understand the 50% CGT discount after holding 12 months but can you explain more about the second 50% discount you mentioned?
10:13 Do you mean every time fiat goes from a public exchange to my wallet?
12:01 When using a bucket company as beneficiary, how do we use / access the funds?
13:04 Can you use a foundation to buy and sell cryptos? If so, what are the tax implications?
13:35 Can I use stock method instead of buy-sell records for calculating profits and reporting?
14:11 Is there a problem investing in DeFi with SMSF?
15:11 How do you buy from a trust? I haven’t tried yet but Warren was indicating Binance not permitting.
16:16 Does your company take on advisory services to new clients?
16:30 Do you have a comment about whether the director of the corporate trustee should or shouldn’t be a listed beneficiary of the trust?
17:30 Moving to a trust in the middle of the tax year – assume old rules until the day, then new rules from the day the trust starts? Is that right?
17:50 For trading (vs > 12 months) is individual account / structure the only recommended option?
19:02 If you’re grid trading, with many trades per day or hour, and I’m holding for a year, are you saying I have to record and keep on file every transaction?
20:10 In the event of an audit does the ATO have access to overseas exchange records such as Binance?
22:08 If I’ve had crypto in a cold storage since 2018, if I transfer ownership to a trust today, this will trigger capital gains, so am I better off leaving it in my name for now? Or can I transfer ownership without paying tax?
23:46 What’s the definition of an ‘active asset’ in terms of CGT in the discretionary trust example? Does this extend to other ‘assets’ outside of crypto?
24:55 I’m in the DeFi space. On the Binance Smart Chain … the tokens are deposited and locked in return for 1% daily return which can be either compounded or claimed. It is very lucrative but the record keeping required will be complicated and extensive.
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