Crypto Currency Tax | ETAX/MyTax, Tax Return Information: Learn Tax Tips and Tax Advice Australia

Cryptocurrency and Tax Implication

May 28, 2021

by Acc Ramji ATO Crypto Currency Tax

Crypto traders mainly do Buying and selling actions towards ATO. Some of the transactions lead to CGT events. On the other hand, some CGT are considered as exempt so no need to pay tax to ATO.

● Buying Crypto
You don’t need to pay tax, if you buy crypto by using fiat currency or Australian dollar. As a matter of fact, whenever you buy or sell crypto, you need to record or document the amount you have paid cryptocurrency. This information would be helpful to calculate CGT to pay ATO.
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● Selling Crypto
If you want to earn fiat currency or Australian dollar and sell crypto. A CGT event occurred. For example, you purchased 1 BTC five years ago worth it $10,000. If you sell now for $24,000 and cash it out, you will pay $14,000 of CGT.

● Trading Using Cryptocurrencies
CGT will trigger if you buy one crypto to another. For example, if you buy 1,000 Ether with 1 BTC and bought from 5 year ago with the value of $1000. But BTC is worth $10,000. So CGT will be $9,000.

● Crypto Transfers
Tax payers want to move crypto from one wallet to another, there will be no charges for this. It is mostly non-taxable. This same rule applies to exchange for another wallet and transfer for wallet.

● Buying Goods with Crypto
If taxpayers use cryptocurrency as purchasing goods and services, they may don’t need to pay taxes but the amount should not be more than $10,000. On the other hand, if the cost is more than $10,000, you may need to pay taxes to the ATO.

For more information on online tax return 2021, Tax Return 2021, myGov 2021, myTax 2021 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

ATO and Cryptocurrency

May 28, 2021

by Acc Ramji ATO Crypto Currency Tax

ATO consistently guarantees all exchanges and records follow charge commitment and they accept that this exchange is worth a large number of AUD regardless of whether the exchange was more modest. At that point, 1 BTC is worth around $69,400. The benefit and misfortune relies upon the worth when you pay after ATO. Aoording to ATO, digital currency is considered as advanced cash instead of genuine cash. ATO shows advanced cash as property.

For CGT purposes, digital forms of money are resources, and thusly CGT will apply once you:

● Sell a digital currency
● Send a digital currency as a gift
● Exchange crypto for another fiat or crypto
● Convert to fiat money, like Australian dollars
● Purchase labor and products

ATO will concern you either separately or as an expert premise which relies upon ATO guidelines. On the off chance that your exchange is associated with digital currency, you need to pay an expense to ATO.
In the event that your essential objective is purchasing and selling bitcoin or other cryptographic forms of money, you are viewed as an individual financial backer. So whatever you procure as pay is considered as capital increases, airdrops and forks.

The greater part of individuals need to pay CGT in the event that they were locked in with crypto exercises.

Be that as it may, in the event that you fill in as an expert or business with an enormous measure of exchanges, you are viewed as a broker for ATO. The essential objective is to acquire pay with the assistance of crypto exchanges. In the event that you have bought or acquired benefit by selling, ATO will burden you on benefit pay as CGT. Now and then it’s very astounding in light of the fact that the exchanging sum is unpredictable and not steady. In the event that you have less exercises with respect to your crypto , you actually see yourself as a dealer or financial backer for ATO.

Cryptocurrency Traders & Tax

April 30, 2021

by Acc Ramji Crypto Currency Tax

ATO sent an email to more than 350,000 Australians regarding Tax from early March 2020. If you make a transaction regarding crypto currency which was not reported by you to ATO authorities, ATO will go after you for sure and take necessary action. As matter of fact, ATO will focus on every single person who forgot to report ATO intentionally or unintentionally. Even if your transaction was too small, they look after every individual. Having said that, ATO required accurate tax reporting for crypto traders, investors as well as normal businessmen.

Cryptocurrency considers two types of transactions which are totally depending on certain transactions. There are two types of taxes like capital gain tax (CGT) or ordinary income tax, so crypto traders may have to pay either on or on both. It depends on the situation.

If you do not run any business for profit, you don’t need to pay taxes; individuals need to pay taxes on what income they earn or any purchased using cryptocurrency like bitcoin. However, cryptocurrencies are regarded as CGT assets, the reason for that is that taxpayers need to pay certain taxes whenever individuals use cryptocurrency as a transaction in their account.

Some exemptions apply when a transaction happens and no need to pay CGT.

You use cryptocurrency to purchase goods and services for yourself. For example, you book a hotel online using Bitcoin.
The transaction is less than $10,000.

It means that, if the transaction costs more than $10,000, CGT needs to pay to ATO. This value is calculated based on crypto currency used during acquisition and disposal.

There are some different circumstances apply for crypto currency:

You are qualified as a discount on CGT, if you have held the cryptocurrency for more than 12 months before selling it.

These discounts include:

50% for Australian residents, including those who work as a partner in partnerships
33% discount if the taxpayer complies with super funds and specific life insurance companies

Tax and Crypto Currency – How it works in Tax system

April 30, 2021

by Acc Ramji Crypto Currency Tax MyGov Mytax 2021 Tax Refund 2021 Tax Return 2021

Crypto currency is totally different from individual tax returns. Crypto taxes are more perplexing than other businesses. We are here to help regarding your crypto currency and taxes. When the time comes to lodge your crypto taxes with ATO, we are here to provide detailed guidance regarding your tax complications.

Generally, If you are buying crypto currency in your wallet, you need to pay taxes to ATO as a sole trader. Capital gain is considered trade income which is called assessable income. On the other hand, buyers are considered as purchases. There are over 1600 crypto currencies listed in Australia. Due to the popularity of this currency, more and more traders will participate in it. ATO has introduced crypto taxation which is totally different from other tax systems. According to ATO, more than million Australians have crypto currency. ATO also surveillance on those people who do transactions regarding crypto and pay their taxes correctly or not.

Collection of data by the ATO involves the following records:

Digital currency owner details such as Name, address, date of birth, contact number, email address, date of birth and account information as well.
Account details such as when the bank account opens, closing date, extra fees, and account suspended or not, wallet addresses unique identifier and transaction history.

As a result, when you lodge your tax return, ATO will check all transactions and compare numbers with the DSP report. This process discloses your honesty regarding crypto activities and related all transaction reports. ATO always checks that you are paying the right amount of taxes because ATO knows very well if you are not disclosing your activity, and tax reports does not match with your transaction will be put in big trouble.