As cryptocurrency becomes more prevalent, more people are asking this question, why you should tell the government about your crypto transactions? Read on to find out more about how to stay compliant with the ATO.
Cryptocurrencies are a digital asset that can be used to make payments. They come in many forms, such as Bitcoin, Tether, Ethereum, etc. and they’re created from code using an encrypted string of data blocks, called a blockchain. The ATO classifies cryptocurrencies as property for Capital Gains Tax (CGT) purposes.
So for tax purposes, the way you utilize or deal with crypto assets will determine how you regard them. The most prevalent usage of crypto assets is as an investment (end investors acquire and maintain crypto currencies to profit from holding or selling them).
Keep in mind that if you’ve done business with a foreign cryptocurrency exchange, you may be subject to tax obligations in a different nation.
When you trade cryptocurrencies for other assets like cash or products, it’s usually considered a disposal for capital gains tax (CGT) purposes. This implies you may need to account for any capital gain or loss in your income taxes.
So if you trade, buy, or invest in cryptocurrencies, you must be aware of your tax responsibilities, to stay compliant with the ATO. Depending on your circumstances, your tax obligations will differ. You must keep records for all cryptocurrency transactions and are required to maintain documentation for five years after selling crypto assets.
That is where we come in! Crypto Tax Calculator Australia is the perfect tool for Australian crypto traders. Use our Crypto Tax Calculator to make filing your crypto taxes a breeze! It takes the hassle and stress out of crypto calculations.
So if you’re looking for an easy way to calculate your cryptocurrency profits and losses, look no further than our handy Crypto Tax Calculator. Our calculator allows you to input all of your transactions quickly and easily, just by uploading your CSV file! Get in contact with us to find out more!