# DUAL US/AUS citizen buy/sell Bitcoin



## hoochiemama1 (10 mo ago)

Hello,

I bought Bitcoin while a resident living in Australia. If I sell bitcoin while residing in USA, I will pay capital gains tax in the USA. Will there be any tax owed to Australia?

Thanks!


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## Moulard (Feb 3, 2017)

It can be a bit complex...

Were you still considered a tax resident of Australia when you sold the bitcoin?

If you have left Australia only temporarily you may still be considered a Tax Resident of Australia

You can use this to help determine.









Work out your tax residency


You will need to work out if you are an Australian or foreign resident for tax purposes. This may be different to your residency status for other purposes.




www.ato.gov.au





If the answer is no, you are not a tax resident of Australia, then the gain is treated as sourced in the US I believe and only US taxed.

If the answer is yes, then you also would be subject to CGT tax in Australia, but would be able to claim a foreign tax offset for US CGT paid.

If both the US and Australia can claim you as a tax resident, then tie breaker rules in the tax treaty would come into play.


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## hoochiemama1 (10 mo ago)

thanks for the link;


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## hoochiemama1 (10 mo ago)

Moulard said:


> It can be a bit complex...
> 
> Were you still considered a tax resident of Australia when you sold the bitcoin?
> 
> ...


thanks for the link; it's still a bit confusing but this example from the link best fits my scenario. 

I am re-locating to the US for work and will reside in my home there for at least 2-3 years (or longer). If I choose to sell Bitcoin while residing in the USA, it seems I would not be considered a tax resident in AU and would only pay CGT in the USA.

_Bronwyn, an Australian resident, has received a job offer to work overseas for three years, with the option to extend for another three years. Bronwyn, her husband and three children decide to make the move._ _They retain their property in Australia, as they intend to return one day.

the length of Bronwyn's physical absence from Australia and the surrounding circumstances (such as establishing a home overseas with her family and renting out her family home in Australia) are not consistent with residing in Australia, even though she has retained the family home in Australia._


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## Helixo (10 mo ago)

Legislation in Austria or the US is quite controversial in terms of paying taxes on income from cryptocurrencies. 
I am waiting for countries to work on this and make it very clear, like in Dubai for example, just 5% tax on cryptocurrency income and that's it. No problem, you pay 5% and you are absolutely clean in the eyes of the banks.


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## Moulard (Feb 3, 2017)

Helixo said:


> Legislation in Austria or the US is quite controversial in terms of paying taxes on income from cryptocurrencies.



No controversy what so ever. Any increase between the buy price and the sell price is considered a capital gain and is thus treated as income.

Its been that way since 2014 when IRS released Notice 2014-21 and similar was done by the ATO about the same time.


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