Many have their fingers in the cryptocurrency pie right now, but when it comes to tax time, a whole lot of us are either completely overlooking these investments or labelling them wrongly.
At Accounting Tax Solutions, we have specifically trained professionals in the realm of cryptocurrency to ensure that you are making smart decisions with your investments and declaring them correctly come tax time.
If you would like to have a chat with a member of our team, do not hesitate to get in touch to talk over your plans and goals regarding cryptocurrency investments.
What we are finding is that many individuals don’t even realise that what they are doing when they buy, trade or sell cryptocurrency is even taxable at all. It is not mentioned to their accountants and this does catch up on them.
The ATO have been cracking down on crypto and have the means to discover your activity in this realm. If you have dabbled with cryptocurrency, it is imperative that you let your accountant know so that we can talk about what this means regarding your tax returns.
Trades in cryptocurrency have skyrocketed up 64% in 2021. There are at least half a million Australians trading, buying and selling digital currency. We expect this number to continue to grow, and the ATO does too.
The consequences for neglecting to mention your involvement can be catastrophic. Even for the younger person dabbling in the field, they might find that the implications of being caught out without declaring the activity can dwarf all other tax issues that may arise.
It is possible to make a very large profit or a very large loss in a short amount of time through cryptocurrency exchanges. The activity you do may incur CGT if you are seen to be an investor, or income tax if you are actually trading in cryptocurrencies.
With the ATO having kept a close eye on transaction records as far back as 2014, there is little escape when it comes to declaring your involvement. They have ways of keeping an eye on ensuring that you are fulfilling your tax obligations.
By speaking with a team member at Accounting Tax Solutions, together we can determine what your tax obligations will be regarding your involvement in crypto. That way, you can remain at ease, confident that the ATO won’t put a damper on your pathway to financial success. Contact our office on 07 5559 1200