If you’re someone who uses crypto for personal purchases as actual currency, then the accounting is fairly simple. You aren’t using it to make a profit, and you may not need to pay tax on transactions up to $10K.
Accounting for cryptocurrency does not need to be complex. When you work with our expert crypto accountants, you get qualified information with proven strategies to help you remain compliant.
At Clear Tax, our mission is to help our clients understand their crypto tax obligations. We work with beginners to experienced crypto traders to help them achieve better outcomes. As your local accountants specialising in cryptocurrency, this is all part of our unbeatable service.
At Clear Tax, our business sales accountants can help you understand all the implications of investing in crypto. For example, in Australia, cryptocurrency investments are generally classed as property, and are therefore subject to Capital Gains Tax.
One of the most important things you need to do is keep records of your cryptocurrency deals. While this may seem counterintuitive for a type of currency that is secure and private, you still need to keep records to stay in the ATO’s good books.
Here’s how cryptocurrency accounting works in different situations:
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We work with crypto traders and owners to help them find better outcomes. We do this by always offering accurate advice about cryptocurrency accounting coupled with the highest regard for your interests.
We’ll only offer a course of action if it is legal and ethical. While cryptocurrency is exciting and potentially profitable, no amount of wealth is worth jeopardising your future.
Cryptocurrency is appealing because it is difficult to trace. This does not mean that you should fail to record your crypto transactions. Here’s what you should keep in the way of records when buying and selling crypto:
It’s also wise to keep a copy of your digital wallet and keys to keep yourself safe and protected in the event of scams.
Airdropping is a process whereby a cryptocurrency sends free coins to its users. Depending on the value of this airdrop, it may be required to be reported to the ATO. Always keep a record of any drops that you receive.
Staking in cryptocurrency is where you offer your crypto up to a blockchain network where it is used as proof for transactions. You can earn a small percentage thanks to your stake. This passive income must also be reported to the ATO.
Disposal is any movement of cryptocurrency from yourself to another. You must report your crypto disposal no matter if you’ve made a profit or loss on it. You should report on every crypto disposal, especially in situations like:
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