Crypto-related revenues are one of seven priority areas where greater effort is needed to ensure accurate reporting, according to the Australian tax authorities. Taxpayers should compute any capital gain or loss from the sale of digital coins and tokens and declare it in their tax forms.
Australian Taxpayers have been Advised to Report Cryptocurrency Gains
The Australian Taxation Office (ATO) has identified four main areas on which it will concentrate its efforts this year. Record-keeping, work-related expenses, and rental property income and deductions are among them. The list of stated priorities is completed by ensuring a better examination of capital gains reporting from property, shares, and crypto assets.
Assistant Commissioner Tim Loh was cited as saying, “The ATO is targeting trouble areas where we observe people making mistakes.” Taxpayers should reconsider their claims and follow the regulations, according to the high-ranking official.
Australians are being warned by the tax office that if they sell crypto assets this financial year, including non-fungible tokens (NFTs), they must calculate any capital gain or loss and report it on their tax returns. Loh remarked:
Because cryptocurrency is a popular asset, we expect to see more capital gains or losses declared in tax returns this year.
The ATO knows that many Australian residents are buying, selling, or exchanging digital assets, so it’s critical that people understand their tax obligations, according to the assistant commissioner. He also reminded taxpayers that crypto losses cannot be deducted from their salaries and wages.
After recent research found that more than a million Australians, or 5% of those aged 18 and older, possess one or more cryptocurrencies, the agency decided to focus on the reporting and taxes of gains from crypto investments. Young male Australians are the most likely bitcoin holders, according to the writers from market research firm Roy Morgan.
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