<a href="https://cryptotale.org/australia-bans-crypto-and-credit-cards-for-online-gambling/" rel="noopener noreferrer nofollow">Australian</a> tax authorities have recently <a href="https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/transactions-acquiring-and-disposing-of-crypto-assets/crypto-asset-transactions-with-gift-cards-or-debit-cards" rel="noopener noreferrer nofollow">updated</a> their guidance on cryptocurrency transactions involving gift cards and debit cards. The new rules clarify how capital gains tax (CGT) applies to various crypto-related transactions.First, using crypto to acquire a gift card triggers a CGT event. Regardless of whether the gift card is denominated in Australian Dollars (AUD) or cryptocurrency, the capital proceeds equal the market value of the card at the time of acquisition. For instance, if someone buys a gift card worth $100 using cryptocurrency initially valued at $50, they incur a capital gain of $50.Additionally, loading or topping up a gift or debit card with cryptocurrency also constitutes a CGT event. Here, the capital proceeds equal the amount by which the card’s available balance is increased. For example, if a person adds $2,000 to their debit card by transferring cryptocurrency, the capital proceeds are $2,000.Related: <a href="https://cryptotale.org/austrac-report-highlights-cryptos-role-in-modern-money-laundering/" rel="noopener noreferrer nofollow">AUSTRAC Report Highlights Crypto’s Role in Modern Money Laundering</a>Moreover, when using gift or debit cards denominated in cryptocurrency, changes in the asset’s value affect the tax outcome. For instance, if a gift card valued at 500 XRP was purchased when XRP was worth $1 each and used to buy an item costing 400 XRP, the value of XRP might have changed. If XRP drops to $0.95, the user incurs a capital loss of $20.The Australian Tax Office (ATO) has included <a href="https://cryptotale.org/xrp-sees-fluctuations-crucial-breakout-or-rejection-ahead/" rel="noopener noreferrer nofollow">XRP</a> in its examples to illustrate these rules. JackTheRippler, a notable figure in the crypto community, highlighted this inclusion, stating, &#34;XRP Is Used As an Example Directly On Australian Government Website!&#34; This mention underscores the relevance of these guidelines to widely used cryptocurrencies.<a href="https://cryptotale.org/xrp-on-ato-website-crypto-tax-rule-and-gift-debit-cards/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

XRP on ATO Website: Crypto Tax Rule and Gift, Debit Cards

CryptoTale

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