Have you invested in cryptocurrency or NFTs?
Over the past few years we have seen a boom in the investing and trading of cryptocurrency (crypto) and Non-Fungible Tokens (NFT's). In fact, half a million Australians have invested in both of these markets.
However, despite some prevalent myths, both Crypto and NFT's are taxed in Australia. The Australian Taxation Office (ATO) recognises them as assets, meaning that they are subject to attracting both income and capital gains tax.
The ATO has also announced that this financial year, they will specifically be cracking down on cryptocurrency investing and trading. This comes after the revelation that the ATO has extended their partnership with Australia's cryptocurrency exchanges meaning that these firms are required to hand over their trading data until 2022 - 2023.
So what does this mean for you?
If you have made a profit on either cryptocurrency or NFT's in the last financial year, you will need to declare your crypto and NFT totals on your income tax return.
We know that this complicates your tax lodgment, but here at Solution In, we are able to assist you in accurately reporting your crypto and NFT investments in accordance to the ATO. To lean more, book an appointment for a free 30 minute consultation today! You can call us at 0405 012 345 or make a booking online at https://www.solutionin.com.au/book-appointment.