Private ruling: Am I carrying on a business of cryptocurrency trading?
Date of advice: 14 October 2021
Published: January 2022
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Were you carrying on a business of crypto currency trading? | A1: Yes. Based on the information provided the Commissioner has agreed that you satisfied the indicators outlined in Taxation Ruling TR 97/11 for that part of the financial year ended 30 June 20XX. You had a purpose of profit as well as a prospect of profit, the activity had regularity and repetition, it was of the same kind and carried on in a business-like manner of similar activities, and its size and scale were sufficient that it would not be considered a hobby or form of recreation. | Q2: If question one is yes, will section 35-30 of the Income Tax Assessment Act 1997 (ITAA 1997) apply to allow the offset of losses against other assessable income? | A2: If you satisfy the income requirement and meet one of the 4 tests you will be eligible to offset losses against other assessable income. More information is available on the ATO website. Use QC 33774

Relevant facts and circumstances: You are a full-time employee who satisfies the less than $250,000 income requirement for the income year ended 30 June 20XX. Your assessable income from the trading activity was more than $XXX for the income year ended 30 June 20XX. You began trading cryptocurrency though a cryptocurrency exchange during the relevant period. You engaged in this trading activity with the intention to make a profit through day trading. You invested a total of $XX,000 capital throughout this period to fund this trading activity and made a total loss of $XX,000. You performed daily technical analysis to help you decide which cryptocurrency to buy and sell. You made approximately XXX trades over the relevant period.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1. | Income Tax Assessment Act 1997 section 35-10. | Income Tax Assessment Act 1997 section 35-30.