BTC targets and taking profit?

mmm....shiney!

mmm....shiney!

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We've got to assess our overall financial goals and strategies regarding BTC in our SMSF at some point this year.

Our current situation:

1. an IP with a LVR of around 26% and offset account
2. Some cash
3. BTC in cold storage
4. Very small amount of PM

The IP provides a positive net return but doesn't cover all of the expenses associated with the SMSF (I'm talking life insurance etc here) so we have to tip extra $ into it monthly either by way of extra personal contributions or drawing down from the cash reserve in the offset account.

I'll list some things I've been thinking about and add to the list as time goes on. Feel free to add anything you consider worthwhile discussing. These are not in any particular order of merit as of yet.
 
We've got 3 alternatives and within each alternative we have multiple strategies to pursue.

1. Sell the entire holding of BTC.
2. Sell a portion of the BTC currently held.
3. Hold the entire portion.
4. Sell the IP.

Any sale will trigger a gain event but we're eligible for the 50% discount rate on any capital gains.
 
Shouldn't have voted for Labor.... told y'all.
You could live part-time abroad, there are still many places that have not gone full retard with socialism. When you're out of Oz for more than 180 per fiscal you're not a tax resident. End of misery.
Perhaps after four more years of Alboism sanity will finally prevail.
 
jultorsk said:
Shouldn't have voted for Labor.... told y'all.
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It wouldn't have made any difference. The alternatives are just as retarded ie they all think that running the economy is akin to running a business or a household. There is not a single party in Oz that understands how governments fund their activities.

jultorsk said:
You could live part-time abroad, there are still many places that have not gone full retard with socialism. When you're out of Oz for more than 180 per fiscal you're not a tax resident.
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That's a fifth option but one I'm not going to explore. I need to be close to my family because that's the most important thing to me. It's more important than money.
 
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So taking some cash off the table is probably the most likely move. I'm going to investigate a few alternatives there.

Possible strategy: Sell BTC and buy gold.
Rationale: The POG is less volatile and may protect the wealth accumulated to a degree in a market-wide downturn and/or a crypto winter.
Indicators: I've got a couple of charts I'm looking at comparing the price of gold and BTC with some target zones identified. Both charts have to trigger a trade before I would swap. I won't get the top (or the bottom depending on which way you look at it) but hopefully I'll avoid a BTC bear trap but I will have to wait until the price of BTC has topped v gold (and the POG to bottom) in order to confirm where the trade zone is. While both gold and BTC are appreciating the trade zone is still a fair way off.
 
I came across a video a couple of weeks ago, it went through the changes coming in July I think.
The 180 days/nights overseas is getting complicated, apparently there will be multiple criteria that will make you liable for tax here in Aust.
Even if you are abroad for this time period there are several other events that will trigger your obligations that will be very difficult to avoid.

jultorsk said:
When you're out of Oz for more than 180 per fiscal you're not a tax resident. End of misery.
Click to expand...
 
I'm thinking of selling two-thirds of my btc and buying gold with most of the proceeds (a little will go on some sort of splurge). Will also sell all the other crypto but that's only 1 ETH and some LINK so no great amounts there. Not sure of the timing but probably soon.
 
mmm....shiney! said:
We've got 3 alternatives and within each alternative we have multiple strategies to pursue.

1. Sell the entire holding of BTC.
2. Sell a portion of the BTC currently held.
3. Hold the entire portion.
4. Sell the IP.

Any sale will trigger a gain event but we're eligible for the 50% discount rate on any capital gains.
Click to expand...
I hold a few different tokens. I've recently sold down about a quarter of my holdings. Feels good to take profits. So I'd recommend doing that every once in a while. No sense exiting the position completely unless you are done with crypto. But holding bags instead of realising some gains when you could have is a pretty rough feeling.

Plus, with my partial liquidation, I'm planning on buying a few ounces of silver with some of it. And that has me excited to add some kangaroos to my very small stack
 
precious roar said:
I'm thinking of selling two-thirds of my btc and buying gold with most of the proceeds (a little will go on some sort of splurge). Will also sell all the other crypto but that's only 1 ETH and some LINK so no great amounts there. Not sure of the timing but probably soon.
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2/3 hey?

So you're of the opinion that BTC has less upside potential going forward than we've seen and that gold will outperform it?
 
youd be crazy to sell btc here, why not transfer to btc etf which is non taxable event for the smsf to hold? can be sold gradually if required and still have exposure. can also do the same with gold fund if you want gold exposure. etf can also be used a security on loan if you need cash flow.
 
BarTender said:
Do they mean when the fund is in pension phase? - If so fund pays no tax on, Dividends, distributions, interest, foreign income or Capital gains.
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I believe it's when you retire and drawing a pension from your SMSF it pays no tax, and your SMSF pension is also not taxed.
 
dozerz said:
doesnt have to be a smsf, monochrome claim they can do it https://www.monochrome.au/products/monochrome-bitcoin-etf

as long as there is no transfer of ownership, e.g your btc to your smsf. the taxable event is change of ownership.
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That sounds a bit weird to me? Your SMSF is a separate entity with it's own Name, ABN and TFN?

I did hear somewhere that if you bought an asset such as a house using crypto, that there was no taxable event as you never converted the crypto to fiat.
 
yes - any in-specie contribution (eg transferring shares held in your own name to SMSF without selling the asset) would be CGT event at market value, and also treated as contribution with tax implication.
 
transfer the btc to a bitcoin etf is not a cgt event. yes the addition of the bitcoin etf to the smsf would be a cgt event, however there is a concessional cap for contributions to the smsf and a bitcoin etf is an allowable contribution. you would need an accountant to assist with classifying as non concessional.
 
mmm....shiney! said:
2/3 hey?

So you're of the opinion that BTC has less upside potential going forward than we've seen and that gold will outperform it?
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I'm expecting a rug pull. Also the messy state of affairs around the world has me thinking of preserving, rather than making, at the moment. I have also transferred what little super I have into cash.

However, I am holding off for the moment as it seems we may be in for another ride of excess money and inflated asset prices so my greed may overtake my fear for a little longer.
 
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