On paper, the capital gains are nothing short of staggering. The value of Bitcoin has seen a growth of 250% in the 2021 Financial Year while some investors have achieved 600%.
However, one big catch is– the capital gains tax (CGT).
ATO tracks down cryptocurrency investments by taxpayers through:
- financial institutions
- cryptocurrency online exchanges
Gains from cryptocurrency investments are taxed the same way as gains from shares.
Understanding the tax implications of cryptocurrency, including the need to revalue assets in Australian dollars, which may generate currency gains, is important.
Registered tax agents, like us, help clients to understand the complexity of the tax around cryptocurrency.
Contact us on 0434391331 for an appointment to lodge your tax returns with Cryptocurrency Investments.