Rands Tax Business Consultants s specilaised in cryptocurrency taxation. We are knowledgeable about the intricacies of crypto tax compliance, especially capital gains, and keeps up to date with the latest cryptocurrency news.
Cryptocurrency Tax Cryptocurrency, or crypto, is digital currency that uses strong cryptography maintained on the blockchain to facilitate transactions of goods and services.
Tax treatment of cryptocurrency is a widely misunderstood and complex area, and many people find it overwhelming to calculate their cryptocurrency tax obligations and outcomes.
Contrary to popular belief, tax applies to cryptocurrency. The Australian Tax Office views cryptocurrency as property and a capital gains tax asset for tax purposes.
Therefore, it is crucial to have a cryptocurrency tax accountant who understands the cryptocurrency market, cryptocurrency prices, and has systems in place to calculate your tax outcomes as efficiently as possible.
Cryptocurrency Taxes: what you need to know.
Crypto are digital assets used as a medium of exchange for goods and services. Cryptocurrency transactions are verified and records maintained by a decentralized system called the blockchain. Bitcoin is the most commonly known cryptocurrency, having been around for the longest period of time.
Since its inception in 2009, cryptocurrency has become an outlet for personal wealth growth through investment or trading.
Many cryptocurrencies have emerged globally, and many countries are attempting to regulate these decentralized digital assets. As such, the ATO is now more diligent in tracking digital transactions and profits earned in this space. ATO data estimates that over 600,000 Australian taxpayers have invested in cryptocurrency since the beginning of 2020.
The ATO views cryptocurrencies as property and a capital gains tax asset for tax purposes. Therefore, if you are trading or investing in cryptocurrency, it is essential to have a cryptocurrency tax accountant review your portfolio and position. At Rands Tax & Business Consultants, we have an in-house team of accountants who are specialized and well-versed in the cryptocurrency market and prices and use the latest systems and software to calculate your tax implications accurately and efficiently.
Cryptocurrency ATO. How is cryptocurrency taxed?
Since this is a relatively new tax field, it is best handled by an expert crypto accountant. We are specialized in this area and can ensure that you are not risking any tax penalties and that you pay what is due, no more and no less.
Cryptocurrency and digital assets are taxable.
Many Australians are unaware that cryptocurrency is taxable by the ATO. It is recognized as a digital asset and falls into the same category as shares, subject to capital gains tax.
ATO crypto tax applies to all transactions
Any crypto-to-crypto transaction is considered a taxable event by the ATO, contrary to popular belief that tax is only paid when you sell your crypto and withdraw your money into AUD.
Cryptocurrency taxes apply for all amounts
The $10,000 personal use asset rule rarely applies to crypto, and any cryptocurrency amount is taxable.
The ATO can and does track cryptocurrency
The ATO is far more diligent now than in the past with tracking history and regulating cryptocurrency activity. All Australian-based cryptocurrency exchanges are required by law to comply with anti-money laundering regulations. Therefore, exchanges must send data and reports to the ATO.
You can move your cryptocurrency to international exchanges or personal wallets, but the ATO will still have the record that you have invested in the market.
We highly recommend that anyone with cryptocurrency take this subject seriously when preparing their tax returns and declare any crypto transactions that have occurred.
Why do you need a cryptocurrency tax accountant?
Cryptocurrency taxation is a relatively new and developing area,
and it is understandably complicated. However, not taking it seriously is a great risk that could incur penalties if you are not tax compliant.
Seeking professional advice from an expert who can provide comprehensive cryptocurrency tax solutions is the best step you can