Can I claim my crypto losses?

HomeInsights


Can I claim my crypto losses?

The ATO has released updated information on claiming cryptocurrency losses and gains in your tax return.


The first point to understand is that gains and losses from crypto are only reported in your tax return when you dispose of it - you sell it, convert it to fiat currency, exchange it for another type of asset, buy something with it, etc. You cannot recognise market fluctuations or claim a loss because the value of your crypto assets changed until the loss is realised or crystallised.


Gains and losses from the disposal of cryptocurrency should be reported in your tax return in the year that the disposal occurred.


If you made a capital gain on crypto that was held as an investment and you held the crypto for more than 12 months then you may be able to access the 50% Capital Gains Tax (CGT) discount and halve the tax you pay.


If you made a loss on the cryptocurrency (capital loss) when you disposed of it, you can generally offset the loss against capital gains you might have (unless the crypto is a personal use asset). But, you can only offset capital losses against capital gains. You cannot offset these losses against other forms of income like salary and wages, unfortunately. If you don’t have any capital gains to offset, you can hold the losses and carry them forward for another future year when you can use them.


If you earned income from crypto such as airdrops or staking rewards, then these also need to be reported in your tax return.


And remember, keep records of your crypto transactions. The ATO has sophisticated data matching programs in place and cryptocurrency reporting is a major area of focus.


GET IN TOUCH GET IN TOUCH




Yesterday

How to quickly improve your credit score

Your credit score is a track record of how you manage debts.


READ MORE READ MORE
22 May

What happens to your property after a breakup?

Before getting into the specifics of property division, it's important to understand the concept of legal ownership.


READ MORE READ MORE
21 May

Close The Dream Gap

Close The Dream Gap. Starting at age 5, many girls begin to develop limiting self-beliefs. They stop believing their gender can do or be anything. This is the Dream Gap.


READ MORE READ MORE




Related News

15 May

Federal Budget 2024 / 2025

Budget 2024-25 is a pre-election budget for the people with everyone getting a little something to ease cost of living pressures. For business, there is the extension of the $20k instant asset write-off again.


READ MORE READ MORE
13 May

Quick Ways To Boost Your Business’ Cash Reserves

Secured business loans play an important role in supporting small business owners.


READ MORE READ MORE
2 May

Accessing money in your SMSF

The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of SMSFs.


READ MORE READ MORE