TAX 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 ABOUT YOUR CRYPTOCURRENCY DATA?
The ATO collects data on cryptocurrency transactions and account information with cryptocurrency Designated Service Provider (‘DSPs’) such as coinbase, coinjar, swyftx etc. Wonder how? it is because:
HOW DOES CRYPTOCURRENCY GET TAXED?
i. Whether you held crypto as an:
ii. Whether you made a Profit or Loss.
iii. Taxation of cryptocurrency based on your 'Legal Structure':
|Legal Structure||INVESTOR||TRADER||TAX RATES|
|Individual||50% Discount||-||Individual Pay at Marginal Tax Rate|
|Sole Trader||50% Discount||-||Sole Traders Pay at Marginal Tax Rate|
|Trust||50% Discount - In the hands of beneficiaries ONLY||-||Beneficiary(s) Pay at Marginal Tax Rate|
|Partnership||50% Discount - In the hands of partner(s) ONLY||-||Partner(s) Pay at Marginal Tax Rate|
|Company: Turnover||Not Qualified for 50% Discount||-||Flat at 27.50% on Taxable Income|
|Company: Turnover >$10m||Not Qualified for 50% Discount||-||Flat at 30.00% on Taxable Income|
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 $AUD price on Purchase and Donation date. However, your tax deduction will be equal to the fair market value of the donated cryptocurrency on Donation Date.
LODGEMENT DEADLINE 31 OCTOBER 2023
BE TAX STRESS-FREE