Crypto based SMSF tax tips to offset losses.

Here are six tax tips on crypto assets when incurring crypto trading losses in your crypto SMSF. There are a few things you can do to reduce the tax burden when you have crypto losses within your SMSF.

  1. Firstly, any realised capital losses on crypto investments can be offset against capital gains from other investments to reduce your balance of assessable capital gain.
  2. Your losses from your crypto trading and speculating may be able to be offset against other earned income
  3. Running a crypto trading business through a company that incurred losses this financial year could create an opportunity to access the “loss carry back offset”, where eligible.
  4. Any airdrops (free coins or tokens sent to a wallet address to promote a new currency) received during the year will be assessable as ordinary income based on the market value at the time they were received. They cannot be offset against any capital losses from other crypto investments.
  5. Swapping between crypto currencies will trigger a capital gain or loss in the same way as selling crypto for fiat currency.
  6. Losses from this financial year cannot be offset against gains from prior financial years.


Note this is not financial advice but produced for information purposes.

Thinking of investing in a crypto based SMSF or need help with the tax, audit and compliance of your SMSF. Feel free to contact us