Over the past twelve months, popular cryptocurrency giant bitcoin has boomed whilst other coins have lost value. There are special tax rules that need to be followed for cryptocurrency.
The tax office now has access to crypto transaction that can be obtained from digital currency exchanges. Now more than ever, records must be kept regarding cryptocurrency, and any income or losses from trading are declared.
Tax treatment of crypto transactions is dependent on an individual’s circumstances. Some people will have capital gains and losses from their crypto transaction, but others will have income tax gains or losses.
It is also essential to understand if there may be any tax implications from transacting in a foreign country.
When trading or transacting in cryptocurrencies in any way, discussing the best way to go about it with an accountant could save you a lot of trouble in the long run.
For more information, contact us at Lockwood and Ward on (02) 9299 7044 or send an e-mail to admin@lockwood.com.au