Issue - Unlisted Investment

Scenario

• The SMSF acquired 1 Bitcoin <BTC> for $4,000 on 01/07/2021 
• The SMSF then swapped the Bitcoin <BTC> with Binance <BNB> on 31/07/2022
• At the time of the trade, the market value of 1 Bitcoin <BTC> according to the exchange equal to $6,000 (AUD)
• Brokerage fee of $400 was applied to the disposal proceeds

Resolution 

Navigate to Fund Level > Transactions > Investment - Sell > Unlisted Security Disposal

Referring to the transaction report provided by the exchange, enter the following details:

1. Bitcoin <BTC> as the Investment Account
2. Record disposal cost as Trade Value (in this scenario $6,000)
3. Record Brokerage (in this scenario $400) 

Ensure Binance <BNB> is setup as Unlisted Investment Account.

Navigate to Fund Level > Transactions > Investment - Buy > Non-Cash Acquisition

Referring to the transaction report provided by the exchange, enter the following details:

1. Select the Holding Account (Binance <BNB>)
2. Enter the date when the swap took place
3. Enter the quantities received for BNB and market value net of Brokerage (in this scenario $5,600)
4. Match the Unlisted Security Disposal with the Non-Cash Acquisition

As for CGT in relation to Bitcoin <BTC>, the system will automatically calculate the net capital gain and work out any CGT Discount applicable.

We recommend reconciling the relevant reports populated from Class to your external worksheet or Exchange Reports.

Manually match the parcel if needed to be reconciled with external report. Refer our Manual Parcel Matches article for assistance.

Custom Holding Account

Using the same scenario above we will apply it to Cryptocurrency investments set up using Custom Holding Accounts. 

Navigate to Fund Level > Transactions > Browse Bank Statements 

1. Select Bitcoin (or relevant Wallet) from the drop down menu
2. Process Cash Out transaction for $4,000 (being the cost base of BTC)

Navigate to Fund Level > Transactions > Fund Income > Realised Accounting Gain/(Loss)

1. Process the Realised Gain for both Accounting and Tax Purposes of $1,600 (being the Market Value less the brokerage of $5,600 less cost base of $4,000)

Navigate to Fund Level > Transactions > Browse Bank Statements

1. Select Binance from the drop down box
2. Process a Cash In transaction for $5,600 to bring in the new cost base for Binance.
3. You can then match the Cash Out & Cash In Transactions with the Realised Accounting Gain/(Loss) event. 

As for CGT event to take up swap in relation to Bitcoin <BTC>, the system will calculate 1/3 discount automatically leaving 2/3 as taxed. Refer to help link below for further information around custom holding account processing.

Custom Holding Account