Jan 09

Crypto Currencies - basic SMSF investment rules

Posted by Anna Eydlish at Tuesday, January 09, 2018

Investing in Crypto or Virtual Currencies via your SMSF - basic rules

There has been a lot of discussion lately regarding Crypto currency. Many people are thinking about using their SMSF to invest. Below are just a few points such investors should be aware of:

- Crypto assets must be purchased in the name of your SMSF

- Check your SMSF deed to make sure that there are no restrictions on investing in crypto investments

- Make sure you store your crypto currency in a secure, independent, insured, location

- Make sure your SMSF auditor is comfortable with auditing your crypto currency assets

Taxation Treatment 

Investment - If SMSF is holding cryptocurrency as an investment SMSF will be subject to capital gains tax on any profits when you dispose of them

Trading - If SMSF is trading cryptocurrencies for profit, the profits will form part of SMSF’s assessable income

If SMSF is in pension phase and sells its crypto assets, the gains will not be taxed in Australia based on the current tax exemptions available for super funds in a pension phase

Pease be aware of the risks and benefits of crypto currency investing.

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