Have you exchanged (sold) cryptocurrency for goods, cash or other cryptocurrencies?
Under most circumstances, people are buying cryptocurrencies with a view to either trading them or as an investment, and as such these transactions are considered a disposal for the purposes of capital gains tax.
The capital gain (or loss) must be including in your taxation return.
The ATO now has a cryptocurrency data matching program and are finding a lot of taxpayers are omitting this information from their tax returns.
If you are dealing with cryptocurrencies, please ensure you let us know about it at your tax appointment.
It is also vital to keep good records of your cryptocurrency transactions, you should keep the following records:
•the date of the transactions
•the value of the cryptocurrency in Australian dollars at the time of the transaction (which can be taken from a reputable online exchange)
•what the transaction was for and who the other party was (even if it’s just their cryptocurrency address)
•receipts of purchase or transfer of cryptocurrency
•exchange records
•records of agent, accountant and legal costs
•digital wallet records and keys
•software costs related to managing your tax affairs
If you have any queries in relation to this matter, please don't hesitate to contact us.
