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Cryptocurrency

Writer's picture: Kelly RogersKelly Rogers

Do you understand your tax obligations when it comes to Cryptocurrency? Be aware that the ATO is telling your accountants when you have traded in crypto currency and they will ask you about.


Hand holding digital currency

Triggering a CGT event

Did you exchange crypto for goods, cash or other crypto? If yes, then it's likely a "disposal" for the purposes of capital gains tax have occurred and you need to report this in your tax return, detailing capital gains or losses. Discounts may apply if you held these digital coins for more than 12 months.


Record keeping

To ensure the correct capital gain or loss is recorded, recordkeeping is essential. All purchases, trades, transfers and disposals must be recorded. Given the complexity and volume of transactions that involve crypto, there are specialised tools and software that are available to help track, calculate and report crypto currency activities accurately.


Crypto Recording Software

There are many services available to assist you with recording your crypto records. Some of these are Koinly, Crypto Tax or also Wealth 99. These services provide annual reports to accountants that include capital gains tax and any income. Without these reports accountants will charge hundreds of dollars because of the hours it takes to produce the same information.


Wealth 99 - more than just a reporting platform

Wealth 99 is more than just a recording platform, it is also capable of storing wallets and assisting with trading in a secure location. this provider has found a way to protect your assets without the need to have an external hard drive or hide things where people can't find them in the event of your death. If you are looking for a viable solution it is worth getting contact with them for more information.


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The information I have provided you is purely factual in nature and does not take account of your personal objectives, situation or needs. The information is objectively ascertainable and, therefore, does not constitute financial product advice. If you require personal advice you should consult an appropriately licensed or authorised financial adviser

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