Miguel purchased crypto currency on the same day he used all of it to pay for some new clothes online for $500 from an online retailer that offered a large discount for payments made in crypto currency. Under the circumstances, how is the purchase and use of the crypto-currency likely to be treated for income tax purposes? a. Any gain or loss would be ignored as the crypto-currency would, on these facts, amount to a personal use asset and as the cost amount involved was less than $10,000 it would be an exempt CGT asset b. Any gain or loss would need to be accounted for Miguel under the ordinary income rules c. Any gain or loss would need to be accounted for by Miguel under the trading stock provisions d. Any gain or loss would be accounted for under the CGT rules as the crypto- currency would, on these facts, amount to a CGT asset.

Answer rating: 100% (QA)

The detailed answer for the above question is provided b... View the full answer