A lot of crypto enthusiasts know that Cryptocurrency Tax Calculator in Australia is so important such that if ATO catches you trading Crypto without paying taxes you will be in a hot Chinese soup.
Just like globenewswire said, the Australian Tax Office allocated $1 billion to fight tax avoidance with particular emphasis on cryptocurrency trading.
The dirty side is no matter what you may think, the Australian IRS knows about your trading and expects you to pay tax on earnings or face hefty penalties. With this said, how can you go through the tricky terrain of calculating your cryptocurrency taxes so you can stay compliant in Australia?
In this guide you will learn how Cryptocurrency tax works and how much tax you’ll pay, preparing for tax time & get to use an online tax calculator, takes you through the tricky terrain of calculating your cryptocurrency taxes
Your Decision to Pay Crypto Taxes in Australia
Now that you’ve seen that you can’t hide from ATO because the Australian government has identified that about 4% of its citizens have engaged in cryptocurrency trading and, for the 2019/2020 budget, are allocating $1 Billion AUD for the ATO to fight tax avoidance with particular emphasis on cryptocurrency trading. What then?
Before we see how to work with the cryptocurrency tax calculator Australia, the basic route to do this is using a dedicated website wherefore Crypto Taxes are legally and easily treated with proceedings.
Top Cryptocurrency Tax Accountant Website In Australia
One of the top Cryptocurrency Tax Accountants Australians traders use is a website called australiacryptotax.com.
GetCryptoTax, a flagship Australiacryptotax web application, help cryptocurrency traders calculate capital gains so they can report earnings on their tax forms.
Why Using Cryptocurrency Tax Accountant Website Prevents Crypto Losses
When you use any ATO cryptocurrency tax tool you will need to take the following steps to prevent crypto losses.
#1. Import Trades from Exchanges
What to do is download your trade history from your cryptocurrency exchanges. Export the data to a .csv file and import it directly into the app.
#2. Calculate Your Capital Gains
Here your capital gains or losses are generated in Australian Dollars (AUD) using the standard cost-basis (FIFO). Coin to coin transfers are priced with historical pricing data from Coin Market Cap.
#3. Export to Form or Spreadsheet
You will go on to Email the spreadsheet directly to your accountant or import it into a program like TurboTax!
Another Cryptocurrency Tax Calculator Tool you can use is TurboTax!: with it, you can easily and accurately file your simple tax returns for FREE.
Yet again, another tool to use is .understandingcryptotax.com.au, with it you can learn to manage your Cryptocurrency taxes the RIGHT way, and avoid stress and headaches at tax time.
How To Calculate Australia Bitcoin Tax
Here is an analysis of a cryptocurrency tax accountant might give you.
Let’s say your total cost base was $50,000, you take this away from $1,000,000 for a capital gain of $950,000.
- If you held your cryptocurrency for more than 12 months, you apply a CGT discount of 50% = $475,000 net capital gain
- Add your net capital gain to the rest of your taxable income – let’s say your total taxable income for the year was $97,663 because you had some deductible expenses. $475,000 + $97,663 = $572,663.
- Apply tax at the relevant marginal rate. If you earn more than $180,001 for the year, you pay $54,097 in tax + 45c for each dollar over $180,000 = $230,795 tax payable.
CGT always applies on capital assets, regardless of how long you hold them. You’re only entitled to a CGT discount when you hold the asset for more than 12 months.
Ref: Tax Analysis by community.ato
Will I Pay Tax In Australia For A Gift Crypto?
Should you be so lucky for Satoshi to gift you free bitcoins, in Australia, the same is true where you gift someone some cryptocurrency – the ‘market value substitution rule’ applies, and you’ve taken to have received the market value of the asset at the time you gifted it.
The Best Cryptocurrency Tax Accountant to Use
Let’s say you need additional help with your taxation process, a recommended CryptoTrader.Tax.
By far, CryptoTrader.Tax is the easiest and most reliable way to prepare your cryptocurrency taxes.
Having been featured on reputable platforms such as Venture Beat | Product Hunt | Bloomberg | and more, with CryptoTrader.Tax, you file your Cryptocurrency taxes with Ease and for free – for a start.
Why Many Austrians Use CryptoTrader.Tax as their Tax Accounting platform
The reason many have navigated to use CryptoTrader.Tax is that it takes away the pain of preparing your crypto taxes. With a simple step process such as connecting your exchanges, importing trades, and downloading your tax report in minutes you are off the hock.
More so, you can import your trades using the API import tool or upload your trade history file. This is so helpful as CryptoTrader.Tax integrates with all major exchanges to make this process quick and painless.
What Other Users are saying about CryptoTrader.Tax
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– Johnny Ricoh
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Did the damn thing today and filed my taxes on my crypto losses lol Got a little money back thanks to @CryptoTraderTax.
Made it super easy and practically did all the work for me. Was accepted by both Fed and State so they’re legit.
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Final Notes on Australian Crypto Taxation
All we wanted to achieve in this article was to make sure cryptocurrency capital gains tax Australia, Australian cryptocurrency tax calculator, and Australia bitcoin tax were sorted out, and it is without a doubt that you’ve grabbed it.