Selling a house in Australia - Tax avoiding?

[Silverchair]

Hi,
If I have a house I bought in Australia for $100k, and sell it forn $120k, I will be taxed on the profits.
So if I sell the house for $80k plus $40k in Bitcoins, I would actually be able to claim the sale as a loss.
Is something like this possible? How legal or traceable would this be?
Thoughts?

[bitkilo]

Hi,
If I have a house I bought in Australia for $100k, and sell it forn $120k, I will be taxed on the profits.
So if I sell the house for $80k plus $40k in Bitcoins, I would actually be able to claim the sale as a loss.
Is something like this possible? How legal or traceable would this be?
Thoughts?

How do you come to the conclusion that if you sold the house for $80k and $40k in bitcoin you would be selling for a lose, it's still $120k in the end, just because $40k is in bitcoin doesn't mean you don't have to pay tax on it.

“The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes,”

https://news.bitcoin.com/bitcoin-double ... -july-1st/

[Silverchair]

it would be a loss if the $40k in bitcoins was not declared.

Just wondering if something like this would ever be tracked, or if it is even traceable?

[Fremont]

it would be a loss if the $40k in bitcoins was not declared.

Just wondering if something like this would ever be tracked, or if it is even traceable?

The buyer is unlikely to simply ignore the fact that they have paid you $120k in total - don't forget that they may have their own tax issues / tax returns, etc., and although I'm not sure how it works in Australia they may be open to receiving some tax relief on the purchase price of the house.

If they submit something for that and the tax folks match it up with the sale of the asset and see that you've underdeclared by $40k you're definitely not going to have a great time.

[bitkilo]

It's not something that I would recommend you do.

Adding onto what Fremont said there is a lot of tax breaks for home buyers in Australia.
New home buyers grant and buying for rental purpose is just a couple i can think of.

[Lilypanama24]

it would be a loss if the $40k in bitcoins was not declared.

Just wondering if something like this would ever be tracked, or if it is even traceable?

If both parties keep quiet about it then probably not. You will have to trust him to make the Bitcoin payment and not to blab to the authorities.

[mjglqw]

it would be a loss if the $40k in bitcoins was not declared.

Just wondering if something like this would ever be tracked, or if it is even traceable?

If both parties keep quiet about it then probably not. You will have to trust him to make the Bitcoin payment and not to blab to the authorities.

Yeah maybe, but I don't think it's worth risking. This could backfire real fast.

[Possum577]

Hi,
If I have a house I bought in Australia for $100k, and sell it forn $120k, I will be taxed on the profits.
So if I sell the house for $80k plus $40k in Bitcoins, I would actually be able to claim the sale as a loss.
Is something like this possible? How legal or traceable would this be?
Thoughts?

Yeah, as bitkilo said, the bitcoin still represents compensation and trade of value of value for the house. It's like when you're at a casino and your gambling and your compensated withe a free night's stay or free dinner, you should be claiming that as income on your taxes. Whether people do or not is another story.

You could sell your home and allow for the real estate agency, escrow agency, wire, or check (all transfer elements that will leave a record) to account for 80% of your sale price. And then take the other 20% of the sale price in cash in a bag, left in your home or somewhere nondescript. Would that be any more illegal than doing it with Bitcoin? No.

It's not legal to fail to declare to income received.

[OneChain]

Check the laws. In some countries after a certain time passes you are not taxed anymore and can sell with no issues. Not sure how the system in Australia works.