#Australiaās Tax #Office is Using a ā100-Pointā Check System to Chase #Crypto #Traders
The Australian Tax Office (ATO) has cast a wide net to investigate crypto #investors after classifying #cryptocurrencies like bitcoin as āassetsā liable for #capital gains #taxes.
Earlier this year, the ATO published its guidance on the tax treatment of cryptocurrencies. Highlighting bitcoin as an example, the authority said it viewed cryptocurrencies as neither #money nor foreign currency but a property deemed an āassetā for capital gains taxes (CGT). āThat means itās subject to the same CGT provisions that apply to real estate and shares,ā confirmed Liz Russell, a senior tax agent at a private online tax filing service. In revealing further insights on the ATOās taxation policies, the tax expert stressed the authority also considers profits made from crypto-cash trades as capital gains.
In essence, a bitcoin bought for $2,000 at one point in 2017 and sold for $19,000 near its all-time highs in late 2017 would see the $17,000 profit taxable for capital gains and will required to be added as an āassessable income for the financial yearā. Inversely, any losses from crypto trading can be written off from the overall CGT tax filing that could include sale of shares or a property.
On the flip-side, crypto investors and adopters can avoid paying capital taxes on gains by spending their cryptocurrency in point-of-sale locations and retail establishments like those in Australiaās first ādigital currency townā, according to the tax expert. āFor these sorts of transactions, no CGT is payable when disposing of cryptocurrency,ā Russel told Business Insider AU.
Swapping crypto gains to fiat cash will be taxable.
As reported previously, the ATO mandated cryptocurrency investors and adopters to maintain records for all cryptocurrency transactions. #bitcoinnews #coin #bitcoininfo #altcoin #bitcoins