Cryptocurrency Tax Returns in Australia

Cryptocurrency Tax Returns in Australia

If you’ve invested in cryptocurrency, you’ll need to report your gains and losses on your tax return. The Australian Taxation Office (ATO) considers cryptocurrency to be a capital asset, which means you’ll pay capital gains tax (CGT) on any profits you make when you sell or trade cryptocurrency. Read on to learn more with this blog post from the crypto tax accountants at AIM S Australia.

How to Calculate Your CGT

To calculate your CGT, you’ll need to know the cost base of your cryptocurrency and the proceeds from the sale or trade. The cost base is the amount you paid for the cryptocurrency, plus any fees and expenses associated with the purchase. The proceeds are the amount you received for the sale or trade, minus any fees and expenses associated with the sale or trade.

Your CGT is calculated by subtracting the cost base from the proceeds. If the proceeds are more than the cost base, you’ll have a capital gain. If the proceeds are less than the cost base, you’ll have a capital loss.

How to Report Your CGT

You’ll need to report your CGT on your tax return in the year you sell or trade the cryptocurrency. You can do this by using the capital gains section of your tax return. If you have a capital gain, you’ll need to pay CGT on the amount of the gain. If you have a capital loss, you may be able to offset the loss against other capital gains you’ve made in the year.

Keeping Records

It’s important to keep records of all your cryptocurrency transactions. This includes the date of the transaction, the amount of cryptocurrency you bought or sold, the price you paid or received, and the fees and expenses associated with the transaction. You can keep these records in a spreadsheet or a cryptocurrency tracking app, or engage the services of a crypto tax filing company to help you maintain records.

Getting Help

If you need help with your cryptocurrency tax return, you can speak to a tax accountant in Melbourne who offers crypto currency tax filling services. A tax accountant can help you understand the ATO’s rules and regulations and ensure that you report your CGT correctly.

At AIM S Australia, we have a dynamic team of highly qualified and committed bookkeepers and tax return accountants who represent a combination of youth and experience.

We can assist with individual tax returns, sole trader tax returns, partnership tax returns, trust tax returns, company tax returns, crypto tax returns, expat tax returns, non-resident tax returns, overdue tax returns, foreign resident tax returns, investment property tax returns and more. We can also help businesses with payroll solutions, late tax filing, capital gains, company formation, business setup and BAS. Enquire today to find out how we can help you.

Leave a Comment

Your email address will not be published. Required fields are marked *