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.
Don’t be left up in the air by traditional IT solutions. Check out our top 10 advantages for small businesses switching to cloud computing.Cloud computing is fast becoming the norm because storing information and using software hosted on the Internet has many advantages.
We are frequently asked questions about obligations for WorkCover and Payroll tax. In this article we explore the details, cutting through the legal jargon so you can gain a greater understanding of how it effects you and your business.
New Year’s Eve is famous for the New Year’s Resolutions people make to better themselves in the coming year. What about your financial future? How can you ensure you stick to your resolution?
Small business owners have a lot to think about: sales, staffing, customer service, vision, growth, the list goes on. In fact, it is hard not to think about your business when you’re a small business owner. Perhaps the one responsibility you would rather not think about is bookkeeping/accounting?
Some business owners try to avoid the hassles of accounting by simply ignoring the problem. “I’m too busy,” they say, but no business can hide from accounting. If late lodgement penalties aren’t motivating enough, hopefully the knowledge that you have basically no visibility into the vital indicators of business health will be.
Sure, there are online tools out there to make the process less burdensome, but could your time be better spent? And while you might think that a part-time bookkeeper might solve your problem, it really depends on your needs, and there are downsides there too.
HERE ARE what we think are THE TOP 5 REASONS TO OUTSOURCE YOUR bookkeeping to SMART Bookkeeping Solutions in Mornington
We often hear from clients “I often forget to send invoice reminders or statements and invoices are falling through the cracks, can Xero help with this?” Easy, of course it can!
It's time to celebrate! SMART Business Solutions are pleased to share with our clients some exciting news. The Finalists in the Australian Accounting Awards have been announced with the team being successful finalists in the following categories
- Best Marketing (you know we always try to be different!) Shannon was also interviewed http://www.accountantsdaily.com.au/breaking-news/8605-accountants-must-touch-their-clients-12-times-a-year
- Accounting Student - Well done Hayden!
- Office Administrator - Awesome effort Nicole!
- Partner of the Year - Shannon Smit for both Transfer Pricing Solutions & SMART Business Solutions
Quality Matters – Independent review with outstanding results for SMART Business Solutions
Paying an accountant to handle all of your financial reporting can be expensive, but if you have several different sources and deductions or if you own a small business, it can be worth it.
Is your business thriving, but you struggle to maintain positive cash flow?
Don’t let it crumble from underneath you
It’s nearly BAS time again - tips to make BAS processing easier
BAS time seems to come around quicker and quicker! Here are some tips to try and make it a little easier!
With June 30 quickly approaching we are pleased to provide our year end checklists and questionnaires to help you get organised.
The headlines say negative gearing is "gone." For most investors, that is not what the new law does.
From 1 July 2027, the 50% CGT discount will be replaced — for individuals, trusts and partnerships — by two mechanisms working together: indexation of the asset's cost base, and a minimum 30% tax on the resulting net gain.
.jpg)
.jpg)
.jpg)
