Working out your cryptocurrency tax can be confusing as there’s...

Originally posted by malmanu

What is the ATO looking for on your tax return as the end of financial year 2021 approaches?
https://www.abc.net.au/news/2021-06-18/tax-time-work-from-home-deductions-gig-economy-cryptocurrecy/100220914


This year the agency will have its eye on work-from-home expenses and rental property claims, and will also be chasing hidden income earned by gig economy workers and cryptocurrency traders.

Working out your cryptocurrency tax can be confusing as there’s a lot to consider. To help you along the way, we’ve compiled answers to the Community’s top cryptocurrency questions. In this article we use some shortened words:

• crypto = cryptocurrency
• CGT = capital gains tax.
  

Note: this article contains general information only. If you’re seeking advice for your specific situation, you can reach out to us for formal advice.

Investor or trader

The first step is to determine whether you are a crypto investor or are carrying on a crypto trading business. It’s important to get this step right as it determines whether your activities are taxed under CGT rules or income tax rules. If you’re still unsure, read through our website for more information.

Am I an investor? Am I a trader running a business?

How crypto is taxed

Does tax apply to every crypto activity? How do I calculate CGT? Is there a way to reduce my tax?

Reporting your crypto

Do I have to declare my crypto in my tax return? Crypto can update daily – what kind of records do I have to keep? How do I record the crypto value on my tax return?