Example Crypto Investment Capital Gain calculation

Author: Duncan Warnock CPA | September, 2025

NOTE:  This is only a very very simple example scenario

Example Scenario  

• Taxpayer Heath Row deposits $5,000 into a new Crypto platform wallet in June 2020 but does not make any crypto purchases until October 2020
• 2021 Tax Year - During the 2021 tax year (1 July 2020 to 30 Jun 2021) Heath makes 3 x BUY crypto transactions totalling $4,702.26 but does not sell any Crypto in the 2021 tax year.
• 2022, 2023 & 2024 tax years - During the 2022, 2023 & 2024 tax years Heath does not buy, sell nor swap any Crypto
• 2025 tax year - In the 2025 tax year, Heath sells for $7,500 all of the Crypto he purchased in the 2021 tax year and buys no other Crypto. At the end of the 2025 tax year Heath holds no Crypto. 
• Crypto Deposits - In terms of deposits into Heath's Crypto platform account he made a $5,000 deposit in June 2020
• Crypto Withdrawls - In terms of withdrawls from Heath's Crypto platform account he withdrew $6,000 on 1 December 2024. 
• Crypto Funds Balance - As at 30 Jun 2025, Heath holds no Crypto Coin investments but still has a Net Amount of $1,797.74 of funds deposited with his Crypto platform (initial Crypto platform funds deposit $5,000, less Crypto purchases $4702.26, plus Crypto Sales $7500, less Crypto platform funds withdrawl) which he may use to purchase more Crypto in the future or maybe just withdraw at a later stage

What is the Capital Gain in the 2025 Tax Year ?

The capital gain is NOT 'Withdrawls' less Deposits. Sometimes this calculated amount may also be the same as the Capital Gain or Loss but usually it wont be. 

What is the Capital Gain ? 

For Heath, the calculation is more simple because:

1. he only purchased 1 x COIN TYPE (ABC) and
2. the Quantity Sold in the 2025 tax year neatly MATCHED the Crypto he had purchased
3. When he Sold the Crypto in 2025 FY that reduced his Crypto holdings down to zero (NIL)

The Capital Gain is calculated as follows:

Sale Proceeds of QTY 0.17681297 is AUD 7,500

less

Cost Base of Purchases for the same QTY 0.17681297 which was AUD 4,702.26

Capital Gain of AUD 2,798

What is the 'Net' Capital Gain ?

If an Asset that is SOLD has been held for 12 months or longer and results in a Capital Gain (not a Capital Loss) the the capital gainfor income tax purposes can have a 50% discount reduction 

In this example as the SOLD Crypto in 2025 FY had been held for more than 12 months (it was purchased in 2021) and resulted in a Capital Gain then the NET CAPITAL GAIN is AUD 1,399  (AUD 2,798 x 50% reduction) 

When Crypto trading is more complex than a very very simple Scenario

Unless you wish to spend many hours MATCHING relevant SELL/SWAP transactions to BUY Crypto transactions for the same Quantity purchased/sold and then calculate all the relevant Capital Gains or Losses for each & every Crypto transaction usually you are best to explore the use of Crypto calculator tools that can do the heavy lifting for you.

Some examples often used are listed below

Koinly https://koinly.io/

Crypto Tax Calculator - https://cryptotaxcalculator.io/au

After using a tool such as the above you can then send through your Crypto Tax Calculation output through to your Accountant