The Australian Taxation Office (ATO) has listed crypto capital gains as one of four areas of focus for 2022.
Capital gains or losses are the difference in price between when an asset is purchased and when it is sold. The percentage owed to the ATO varies by income tier and duration of ownership, but generally, the interest rate is lower for assets held for more than 12 months.
ATO, already fired many warnings For cryptocurrency investors over the past few years, it has also made a direct reference to non-fungible tokens (NFTs) as an asset class that will scrutinize proper tax reporting.
According to May 16 announcementIn addition to capital gains from crypto, property and shares, the ATO will also look at record keeping, work-related expenses and rental property income/deductions.
With the price of most crypto assets suffering significant losses in 2022, the ATO noted that any crypto assets sold, including NFTs, would need to record calculated capital gains or losses and would “take firm action” against taxpayers trying to falsify records the person
ATO Assistant Commissioner Tim Loh also suggested the tax agency already had a fair view of people’s investment activity, but urged everyone to Record carefully To avoid any penalties, state:
“While we receive and match a lot of information about rental income, foreign income, and capital gains events involving stocks, crypto assets or property, we do not pre-fill all of this information for you.”
Loh also went on to point out that the ATO has seen a significant increase in the number of local crypto investors who may not be aware of it The right way to report:
“Cryptocurrencies are a popular asset type, and we expect more capital gains or capital losses to be reported on tax returns this year. Remember, you cannot use your salary and wages to offset your crypto losses.”
“Through our data collection process, we know that many Australians are buying, selling or exchanging digital coins and assets, so it’s important that people understand what this means for their tax liability,” he added.