Cryptocurrency surge...what you need to know
Updated: Dec 1, 2020
Bitcoin is back in the news as there has been a recent surge in cryptocurrency prices. Many of these digital currencies are almost at the peak of December 2017 (see below).
We have had many discussions with clients asking if they need to declare the gains or losses they have made.
The simple answer is YES!
This is not an imaginary world that the ATO will not understand or it's too complicated for them the get information. All australian exchanges need to register with AUSTRAC and they will exchange data about you to the ATO like they already do with other financial institutions.
Keep your records - each of these events could have tax implications;
Fiat currency going into crypto exchanges
transfers between cryptocurrencies
cryptocurrency purchases (direct to retailer)
Transfers back to Fiat currency
Don't run the gauntlet talk to the myself and the team @ Clear Accounting Solutions to assist you through this complicated digital world
Regards,
Adrian De Vito - CPA