I have engaged ITP (as I have been with them since 10 years ago) to do my tax return which includes crypto transactions. I got the assessment notice, my Capital gain is $100K. I may know nothing about CGT calculation on crypto. But 100K, It simply could not be possible.
Does anyone know a good Tax agent that knows crypto/use the correct software? Also anyone know if I can change/use different tax agent to lodge an amendment?
the tax assessment says "Your taxable income includes $100,589.00 capital gains"
Still thinking how ITP calculate it….
Based on the amount of transactions and the value of the transaction… it couldn't be possible. My own record, I actually successfully made a capital loss… I am not a good trader. I always bought when the price was high (greedy), and then panicked when the price went down & did a firesale :)
Try using koinly.io, or crypto tax calculator.io
It’s an online software program. You can load in your API’s from your exchange, add your wallets and it spits out a report. It’s free to try, and would help you to run the numbers again.
try koinly, it's great
Maybe ask the guy here who commits tax fraud with his crypto investments - he could have some bad pointers!
thanks!
So how much did you make on crypto? You did not include this in your post.
Never disclose how much you made on the internet otherwise you are putting a target on yourself for hackers.
Ato can also request your social media accounts lol.
Facebook on private.
OP said 100k capital gain. Could have spent 10million to get 10.1m or $1 to 100,001.
No, that was what the tax assessment said.
the tax assessment says "Your taxable income includes $100,589.00 capital gains"
Congratulations, you made $288,715 this year. It's time to pop the Champagne.
shame you are no good with numbers. 100,589 = 100,589
my Capital gain is $100K. I may know nothing about CGT calculation on crypto. But 100K, It simply could not be possible.
I read the $100,000 as the outstanding CGT on the trades.
"Your taxable income includes $100,589.00 capital gains"
@cloudy: Yeah, it says that if you read it correctly. Wait until you see the sorts of things it says if you read it wrong!
imagine if you shopped for another agent now and have them amend your assessment to something like zero. Not sus at all for the ato, lol
99.99% will get a call from the ATO
Munro's Accountants. Have been using them for a while.
Capital gains for crypto is the same as any other capital gain. I don't think crypto gets treated any differently.
Say I got five dollars of cyto via interest loaning cypto
I pay that five dollars of tax to ato
Then when I sell the cost base is zero
So I also get double taxed.
I use Phool & Woodentnoh, but you could try MT Coffers & Associates.
But 100K, It simply could not be possible.
every trade is a CGT event
Have you made a heap of trades, been in profit in previous trades, but now holding some big loss bags?
definitely possible to have large CGT liabilities from crypto, while being well in the red in current $ terms if you havent locked in losses
On that point, it should be possible to realise your losses by simply trading your crypto to another token. For instance, to realise your DOGE losses, trade it to USDC/BTC/Anything. This will trigger a CGT event. Then you can realise your losses without having to withdraw to fiat. You could then redistribute back to the original tokens if you wish. This would be much cheaper than converting to fiat to realise losses.
Timing is everything with losses. Losses within the same tax year as gains, good. Losses in the tax year after gains, bad. If you had a great June and bad July you might think you're square but you actually have a big CGT liability.
You could then redistribute back to the original tokens if you wish
wash trading may get you into other issues though, as I dont think there has been any official detail on whether the current rules apply to crypto trades or not.
Wash trading applies to securities.
@rektrading: Here's the ATO ruling confirming it applies to "CGT assets", so a wash sale can be on anything.
Yep likely it's this
Jim.
I've used Smartbooks Solutions. They are new and quite good.
A captial gain on cryptocurrencies ss not hard to calculate. Ask them for details of their calculations, and if they stuffed it get them to amend it for you free.
Exchanges report to the ATO. I remember getting a reminder about disposals one year (of which I sold none)… the ATO picked up withdrawals (to cold storage) as a 'disposals'.
Use Koinly for taxes.
edit:typo
the ATO picked up withdrawals (to cold storage) as a 'disposals'.
That is because the tax office doesn't know the difference between a Tx and a swap.
They need to train their workers better.
Anyone know good Tax Agent for Crypto?
One in Monte Carlo, and one in Bermuda.
Which one do you want?
thanks everyone for your inputs. All sorted, ITP found mistakes which made the result out of whack. all good now.
For those who were kidding and found the joy of bashing others who asking a legitimate questions, come on…. No one is able to evade tax, ATO knows your financial dealings….. it is stupid trying to/intentionally commit tax fraud.
Hey mate, do you have contact for the Itp? i need help as well.
So how much did u have to pay then instead of 100k
Did you make 100k? Wicked.
It is not 100k tax but tax on the 100k at your marginal rate.