Need a crypto tax accountant Melbourne? Learn about crypto taxation in Australia, tax-deductible donations, our costs, and use our free crypto calculator!
Our crypto tax accountant provides crypto tax advice on how cryptocurrency is taxed and whether you are entitled to a 50 discount on any disposals.
TREATMENT OF CRYPTOCURRENCY.
Cryptocurrency is treated as an asset like shares, properties, ETFs etc and attracts Capital Gains Tax and Income Tax. Our cryptocurrency tax accountant can help you with crypto tax advice, prepare and lodge your cryptocurrency taxes.
With the ATO’s Crypto crackdown in place as the taxman locked in a data-matching system, it’s important that you know the tax obligations of your crypto trading.
HOW WILL THE ATO KNOW?
Exchanges & Wallet Reporting
Data Matching Program
Knows your Wallet Info
Knows Buy & Sell Details
Blockchain Analysis
Global Co-operation
HOW IS CRYPTO TAXED AUSTRALIA?
Crypto are considered as assets for Income Tax or Capital Gains Tax Purposes. The diagrams below shows how cryptocurrency is taxed depending on:
I. WHETHER YOU HELD CRYPTO AS AN:
Investor
An investor is someone who buys cryptocurrencies in a company to grow their investment over time. In a nutshell, someone who hold assets for longer than 12 months. Investors can access the 50% Capital Gains Discount.
Trader
A trader is someone who buys and sells cryptocurrencies quickly to try and profit from price changes. E.g., for someone who holds assets for less than 12 months, any profit a trader make is taxed at your legal structure's marginal tax rates and doesn't have access to the 50% Capital Gains Discount.
Miner
If you are mining cryptocurrency, any profit you make should be converted into AUD and included in your assessable income. This is on the basis that the ATO considers you to be carrying on a business.
Business Owner
If you accept cryptocurrencies as payment for goods or services provided as part of your business, you will need to convert and record:
- crypto sales income in AUD at fair market value (assessable income).
- business expenses in AUD at fair market value. Business expenses are tax-deductible provided that it was acquired at arm's length value.
Also, capital gains tax events may arise if you sell your business' cryptocurrencies; however, the capital gain is to be reduced by the AUD value originally recorded as assessable income, therefore, you'll not be taxed twice.
Personal Use Asset
A personal use asset (such as a car, boat or painting) is exempt from CGT if it costs less than $10,000. The ATO will accept that cryptocurrency is a personal use asset if you can demonstrate that you acquired it purely to hold and then exchange for other goods and services, and not with the ‘intention’ of making a profit or in the course of carrying on a business, although the question of ‘intention’ can be quite subjective and is not always so easy to prove.
II. WHETHER YOU MADE A PROFIT or loss:
Profit
-
Investors who held for 12 months or more can access the 50% Capital Gains Discount. Companies are not qualified for a 50% CGT Discount.
- Traders who held for less than 12 months are must declare profits as assessable income and are taxed in accordance to the entity type in diagram iii).
Loss
-
Capital Loss: Investors holding cryptos 12 months /more can offset capital losses against gains in the same year or offset against future gains.
- Tax Loss: Traders holding cryptocurrency for less than 12 months can offset losses against trading profits in the same year or carry them forward, but not against salary or capital gains.
III. CRYPTO TAX BY ENTITY TYPES:
| ENTITY TYPE | INVESTOR | TRADER | TAX RATES |
|---|---|---|---|
| Individual | 50% Discount | Profit is assessable | at Marginal Rate |
| Sole Trader | 50% Discount | Profit is assessable | at Marginal Rate |
| Trust | 50% Discount: Beneficiaries get taxed | Profit is assessable | at Marginal Rate |
| Partnership | 50% Discount: Partners get taxed | Profit is assessable | at Marginal Rate |
| Company: Turnover <$10m | No 50% Discount | Profit is assessable | Flat at 25% |
| Company: Turnover >$10m | No 50% Discount | Profit is assessable | Flat at 30% |
ARE CRYPTO DONATIONS TAX DEDUCTIBLE?
Donating cryptocurrency to Registered Charity Organisations and Deductible Gifts Recipients is a tax-free event and is tax deductible.
To calculate your deduction, you need to perform a capital gain or loss calculation based on the $AUD price on the Purchase and Donation date.
However, your tax deduction will be equal to the fair market value of the donated cryptocurrency on Donation Date.
CRYPTO TAX ACCOUNTANT COSTS
Per Disposal
- 1 Buy Transaction
- 1 Sales Transaction
50 Disposals
- Up to 50 Buys Transactions
- Up to 50 Sales Transactions
100+ Disposals
- 100+ Buy Transactions
- 100+ Sales Transactions
- Charge Per Hourly Rate
Contact us if you are looking for Crypto tax accountant costs, crypto tax calculator Australia
CRYPTO TAX CALCULATOR
Click the link below to calculate any Capital Gains (Loss) and or Trading Profits or Losses.
