Crypto Capital wins one of four key areas for the Australian Revenue Commissioner
The Australian Taxation Office (ATO) has identified crypto capital gains as one of four focus areas in 2022.
A capital gain or loss refers to the difference in price between when an asset was bought and when it was sold. The percentage owed to the ATO varies by income bracket and length of ownership, but in general the rate is reduced for assets held longer than 12 months.
The ATO, which has fired many warnings at crypto investors over the past few years, has also directly mentioned Nonfungbile Tokens (NFTs) as an asset class they will be reviewing for proper tax reporting.
According to a May 16 announcement, the ATO will look at record keeping, work-related expenses, and rental income/deductions, in addition to capital gains from crypto, property, and stocks.
With the prices of most crypto assets suffering large losses in 2022, the ATO stated that a calculated capital gain or loss must be booked with every crypto asset sold, including NFTs, and will “take decisive action” to to deal with taxpayers trying to falsify their records
ATO Deputy Commissioner Tim Loh also suggested that the tax authority already had a good idea of people’s investment activity, but urged everyone to keep careful records to avoid penalties, stating:
“Although we receive and match a lot of information about rental income, foreign source income and capital gains events to stocks, crypto assets or real estate, we do not fill in all of this information for you.”
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Loh also noted that the ATO is seeing a significant increase in local crypto investors who may not be aware of correct reporting methods:
“Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported on tax returns this year. Remember, you cannot offset your crypto losses against your paycheck and salary.”
“Through our data collection processes, we know that many Aussies are buying, selling or trading digital coins and assets, so it’s important for people to understand what this means for their tax obligations,” he added.
https://cointelegraph.com/news/crypto-capital-gains-one-of-four-key-areas-for-australian-tax-office Crypto Capital wins one of four key areas for the Australian Revenue Commissioner