Yes it is that time of the year again. When our friendly taxman sends out their gentle annual reminder to the Crypto Bros.
"Hi B18
Our records show you transacted in crypto this year.
If you held your crypto as an investment, you need to report your gains (profit) or losses from sales and other disposals (including exchanging or swapping assets) at the capital gains tax (CGT) section of your tax return.
If you earned income related to the crypto that you held as an investment (such as staking rewards or airdrops), you need to report this at the 'Other Income' section of your tax return.
If you were carrying out a business of trading crypto, you need to report your activities at the 'Business/Sole Trader, Partnership and Trust Income' section of your tax return."
It was a few years ago when we first time we received one of these emails. Sent us into melt down mode, what transactions?
These days the only KYC CEX we use is our local coinspot.com.au and couldn't remember selling any crypto that year. On checking found out that we had swapped some crypto dust for some ATOM.
Every December Coinspot runs their Christmas Bitcoin Giveaway promotion. Buy $5 worth of crypto and you go in the draw for 1 Bitcoin.
As a consolation prise you got some random token. Some tokens we were collecting any way e.g. BAT, so they just got added to the pile. The rest it would cost more in withdrawal fees.
- 4 Ripple (XRP) $1.20 AUD
- 104 VeChain Thor (VET) $0.83 AUD
- 6 Electroneum (ETN) $0.03 AUD
- 4 Dogecoin (DOGE) $0.01 AUD
- 5 Siacoin (SC) $0.01 AUD
- 2 Verge (XVG) $0.01 AUD
- 5 BitTorrent (BTT) $0.00 AUD
- 4 Bytecoin (BCN) $0.00 AUD
So for the sake of $2.09 worth of ATOM we created a taxable event and a head fck. For the full story
Paying Tax on Cryptocurrency - Beginners Guide Down Under
The good thing to come out of the ordeal was became proficient at crypto tax (avoidance).
The ATO Tries Their Own Version Of The Crypto Phishing Scam
The 2020 email was quite clear in stating we had disposed of cryptocurrency. Which in the end turned out we had disposed of $2.09 worth.
The 2024 email was not quite so clear
On checking Coinspot, we did not sell or swap any crypto last financial year. Was meant to but must have forgotten.
So what do they mean by transacted? Do they know about the other transactions? Or are they just Phishing?
Instead of just saying you "bought crypto this year" they instead used the word transacted. Hoping we will voluntarily tell them all. Not bloody likely mate.
On A Lighter Note
Should have kept the 104 VET. We started collecting a few years later.
Pleased we got rid of the XRP and DOGE. Though the DOGE may come back one day and bite us on the bum. XRP, enough has been written on that subject.
And for some reason they did not give out Pi tokens as part of the Coinspot Bitcoin Giveaway promotion. Maybe this Christmas is the year we get given Pi tokens. Highly unlikely but you just never know, any thing is possible in the cryptoverse.
FreeBitco-in Update
So far where have all the sats come from?
- 14537 sats (11.9%) from referral commission, total 18 referrals, 2 active referrals. Most give up with out working out how to get the most out of the platform.
- 993 sats (0.8%) from interest earned. With a 4.08% annual interest rate earning 13 sats per day.
- 8338, 7114, 9751, 7257, 8022 and 8653 sats (33.3%) deposited from Cointiply. Doing the survey grind to speed up the process.
- 30211 sats (24.9%) from Freebitcoin.io, also required lots of surveys. Can only do so many surveys and then gotta have a rest.
- 26476 sats (21.8%) earned from the hourly faucet roll, cashing in Reward Points for 1000% Bitcoin Bonus rolls, free Wheel of Fortune in daily emails. Normal faucet roll is currently 3 sats per hour. With the 1000% Bitcoin Bonus one rolls minimum 33 sats per hour for a day. Wheel of Fortune one can win 17 sats, 17 Reward Point, Lottery Tickets or the biggie of 250 sats
Note: We are keeping the sats from Cointiply and Freebitcoin.io on the platform so as to consolidate UTXO. To reduce future transaction fees, which quickly can gooble up those smaller UTXO's.
With other crypto as soon as we get to the minimum withdrawal threshold it's woosh off to the Crypto Dust Convertor. You usually get one free pass from the platform, so you want to make the most of it.
"Platforms are like public toilets, in, do your business and get out"
So why are we taking the risk of keeping the sats on the platform?
FreeBitco.in has been going since 2013. And has the title of Longest Running BTC Faucet. That counts for something, we hope.
The aim is to reach 0.003 BTC while the getting is still good, i.e. Bitcoin keeps going sideways and the 3 sat reward remains.
While FreeBitco.in has earned less in percentage terms than the other two faucet platforms, it is by far the better payer for time spent. Doing surveys is mind numbing at the best of times and bloody hard work the rest of the time. Occasionally the Grandson will help push the button, so that makes it worthwhile. As he so eloquently put it the other day "earning Bitcoin".
Support Your Local Bloggers Grandson Stacking Sats
Tip, like, follow and use the referral links below, as all the crypto dust goes to supporting and helping our 5 year old Grandson become a future OG.
Click on the images or if you prefer the corresponding URL link.
Other Bitcoin (BTC)
Earn coins from hourly faucet roll, games, surveys, watch PTC ads, multipliers, earn interest etc. Minimum withdrawal 50,000 coins direct to your Bitcoin wallet ($5 BTC). Or redeem coins direct to your DOGE, DASH or LTC wallets (minimum $3). Using PTC ads and surveys get a payout within a week. 4 BTC payouts so far.
Recently revamped site. Earn BTC with faucet, level ups, games, betting, promo codes, wagers and tasks. 50% referral commission. Been using their Bitcoin faucet coming up 4 years. Possible to earn 1000+ sats a day when got time to play. Made the 30,000 sats minimum threshold and sent to freebitco.in. Note there was no fee to make the withdrawal.
https://freebitcoin.io/?ref=150742
Zcash (ZEC)
Been claiming ZEC every 24 hours from Global Hive, since 2020. Earn commissions on 4 tiers of referrals (10%, 5%, 3% and 2%). Paid daily to your ZEC wallet.
Been claiming ZEC every 24 hours from PipeFlare, since 2020. Earn commissions on 4 tiers of referrals(25%, 15%, 10% and 5%), paid monthly. Plus claim daily free 1FLR (native token) 2FLR, MATIC, SHIB and Aurora. Earn more with games, level ups, NFT, 1FLR staking, subscriptions etc. Earned 1.43 ZEC for the month of May.
