KNS ACCOUTANT
Cryptocurrency Tax Accountant
Do you own cryptocurrency assets?
The cryptocurrency craze has been one of the most talked-about financial stories in recent times, and it doesn’t seem like that’s about to change anytime soon.
If you answered yes, you may be in for a rude awakening as the Australian Taxation Office (ATO) ramps up its efforts to ensure taxpayers who have purchased cryptocurrency declare it correctly on their tax returns.
The ATO has made their position on crypto assets & your capital gains tax obligations clear — you need to pay up!
Crypto Tax in Australia: What are Your Obligations with the Australian Taxation Office?
According to Australian tax laws, cryptocurrency is treated as property for capital gains tax purposes. This means if you buy and sell a crypto asset, you may be liable for capital gains tax (CGT) on any profits you make.
A cryptocurrency tax accountant can help you understand the difference between ordinary income, crypro taxes and capital gain in regards to your situation and ensure you are compliant with your obligations.
At KNS, our crypto tax accountants can help you calculate your profits and losses to accurately report and meet your tax obligations on your tax return. They can also advise you on how best to structure your transactions to minimise how much income tax or capital gains you have to pay.
So, if you’re not sure if you have to pay income tax or potentially capital gains tax, get in touch with us today to ensure you’re receiving the best tax advice to comply with the law.
Crypto Investors and Traders: Who Has to Pay Capital Gains Tax and Who Pays Income Tax?
Crypto investors and traders in Australia are subject to different tax rules. The ATO has clarified its position on cryptocurrency investors, stating those who buy and sell digital currencies to experience long-term crypto capital gains will be subject to capital gains tax. This is in contrast to those who trade in cryptocurrencies to make a profit through short-term price movements, who will not be subject to captial gains tax but rather income tax for their Australian Dollars.
In other words, if you’re a crypto trader, you’re essentially conducting a business, and the ATO will consider your business income as assessable income for tax purposes. The ATO’s position is based on the premise that crypto assets (like all other investments) are subject to capital gains tax when owners dispose of them.
The ATO has also stated it will consider each case on its own merits, accounting for factors such as the duration of the investment and the investor’s intention. For example, you may be exempt from capital gains tax depending on whether your crypto asset is considered a personal use asset or business income.
Your capital gains tax rate may also be reduced if you’ve held onto the crypto asset for more than 12 months before selling it at its fair market value.
So, cryptocurrency investors need to keep accurate records of their transactions to ensure they can properly calculate their crypto taxes, and any potential captial gains tax liability.
How Can Our Crypto Tax Accountants Serve You?
Whether you’re a trader or an investor for ATO purposes, our cryptocurrency tax accountants can help you with your taxes.
They have experience with all kinds of cryptocurrencies, so can figure out what category of tax return you fall into and help you understand the tax implications.
Beyond that, we also offer the following crypto tax services below.
Tax Return Preparation and Lodgement
Capital Gains Tax Calculations and Reporting
Crypto Investment Advice
Bookkeeping
Using your SMSF to Invest in Cryptocurrency
Tax Planning and Investment Structuring
Reconciliations
Other Crypto-Tax Related Implications
Why Choose the KNS Team As Your Cryptocurrency Tax Accountants?
When it comes to cryptocurrency tax management in Australia, the KNS team is second to none. We have a wealth of experience in dealing with the ATO, and we are up-to-date with all the latest changes in tax laws so we can ensure no tax implications when managing capital gain and cryptocurrency transactions.
We use crypto tax software that ensures you’re compliant with all your tax obligations, and we will help you to maximise your income tax deductions if you’re a crypto trader. We understand that dealing with the ATO can be a daunting task, but a registered tax agent on our team will take care of your assessable income.
Accountants You Can Trust
We take a client-focused approach to everything we do.
Professionalism
We are committed to providing our clients with personalised, professional care.
Quality
Our team works hard to help you make informed financial decisions.
Accounting Made Simple.
Speak To Our Accountants, Business Advisors And Tax Agents Today!
We understand the unique challenges coming with managing cryptocurrency investments. From preparing your tax return to developing strategies for minimising capital gains, our team of accountants is dedicated to helping our clients maximise their financial success.
We also offer a variety of other services, including bookkeeping and auditing.
So, if you’re looking for help with your cryptocurrency taxes, don’t hesitate to get in touch with our team today.
Phone
(02) 9625 2388
info@knsaccountants.com.au
LUDDENHAM OFFICE
70 Campbell St Luddenham NSW 2745
Arndell Park
Suite 102, 69 Holbeche Rd Arndell Park NSW 2148
ALBURY OFFICE
Level 1, 6/571 Dean Street Albury NSW 2640
Lets Have A Chat
We focus on relationships with our clients, being available to answer any business, accounting, or tax questions you have.
