Crypto Tax Calculator Australia has gathered some frequently asked questions regarding the best application to use to calculate your crypto tax in Australia.
How is crypto tax calculated?
Depending on your individual circumstances, you can sometimes be liable for both capital gains and income tax depending on your crypto transaction. For example, making profits from buying and selling cryptocurrency will mean you need to pay capital gains tax. Plus earning interest when you hold crypto will mean you may need to be pay income tax.
“I lost money trading cryptocurrency. Do I still pay tax?”
It doesn’t matter if you only made losses, you still have to report it to your tax agency. As an investor, you may need to pay tax, regardless if you made a profit or loss. This depends on your circumstances as taxes are usually realised at the time of the transaction, rather than your overall position at the end of the financial year. By completing a report with us this is simplified for you.
How can I avoid paying tax on my crypto transactions/trades?
Every time you transfer funds to an exchange you are leaving a papertrail that tax agencies can catch on to. It’s actually very difficult to avoid crypto taxes as these exchanges can report these to tax authorities if requested.
How can Crypto Tax Calculator Australia help me with crypto taxes?
You just need to import your transaction history and we will help you calculate your realised capital gains and current holdings. You can then send this to your accountant or tax agent and keep detailed records handy for audit purposes.
Can’t I just get my accountant to do this for me?
We always recommend you work with your accountant/tax agent to review your records. However manually preparing your transactions and books can be extremely time consuming, and most accountants will just use software such as CryptoTaxCalculatorAustralia to do this, possibly charging a large sum.
I have not done my crypto taxes for years. Do I have to pay for every financial year?
Our subscription pricing is per financial year however you can calculate your crypto taxes as far back as you need! The process is the same, just upload your transaction history from these years or alter the generated report dates to show the previous years and we can handle the rest.
How does payment work?
We have an annual subscription which covers all previous tax years. If you need to ammend your tax return for previous years you will be covered under the one payment. However your subscription will automatically renew at the end of each financial year on 30th June.
Can I use my own accountant?
Yes you can, CryptoTaxCalculatorAustralia is designed to generate easy tax reports. You simply import all your transaction history and export your report. This means you can get your tax details up to date yourself, allowing you to save significant time, and reduce the bill charged by your accountant or tax agent. You can discuss tax scenarios with your tax agent and have them review the report we provide.