Thanks a lot for the replies. I understand what you’re saying even though it seems weird as I effectively didn’t earn any wealth by minting an NFT but I guess it is what it is. I’ve been reading through all the crypto tax rules in Australia and I’ll of course refer to a professional just to make sure I don’t mess it up. I was just wondering if you can assist me with a couple of things.
1. Tax free threshold: You’ll only start to pay Income Tax when you hit $18,200 in total income per year.
3. Personal use asset: You can get an exemption from capital gains tax if you hold cryptocurrency as a personal use asset. If you purchase no more than $10,000 of cryptocurrency to directly buy something else with crypto for personal use or consumption, that too over a short time period, you’re eligible for this exemption.
The first point refers to only crypto income or do I have to add my income from my normal job? I’d assume I have to add it all together but it’s kind of ambigous. Who would have crypto and earn less than 18k in a year?
I might actually fit in the third point as I basically liquidated a lot of my portfolio to be able to purchase this NFT, so maybe maybe it would count as a personal use asset even though it’s slightly over the 10k threshold so I don’t know.
Apologies for the wall of text again, but playing around with crypto and NFTs this year, has basically only cost me money and it bothers me that I have to pay taxes on something that currently I would sell at a loss.