There are a number of tax fears for investors who have suffered recent crypto losses - and they’ll be under heavy scrutiny from the tax office.
will be under intense scrutiny from the Australian Taxation Office to make sure they are making lawful deductions, particularly those who bought at the height of the boom, say tax specialists.
Investors who bought into CRYP, an ETF investing in up to 50 crypto leaders including Coinbase, Riot Blockchain and Microstrategy launched in late 2021, have seen their holding peak around $12 before dipping to its current trading price of below $2.50.Investors who backed the ETF with a total of around $40 million on the first day of trading would crystallise $30 million in tax losses if they sold, according to Stockspot analysis.
The ATO is warning it is tightening scrutiny of crypto to ensure users are accurately reporting gains and losses and to identify whether it is being used as an investment or for business purposes. Investors are generally referred to as “HOLDers”, which means they buy their crypto intending it to generate wealth through capital growth. They typically hold their investments for several years and all gains and losses are offset against other capital gains and losses.
2. Those carrying on a crypto trading business should consider recording closing stock at market value as opposed to cost as this will reduce/increase your losses/profits.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Solchicks founder rattles $US100m tin for new crypto projectWilliam Wu has started shopping his new project to high-profile crypto investors.
Read more »
The dodgy tax deductions landlords are being warned not to claimTaxpayers spend billions every year on deductions for property investors, and the Australian Tax Office has some questionable claims in its sights this tax time.
Read more »
The dodgy tax deductions landlords are being warned not to claimTaxpayers spend billions every year on deductions for property investors, and the Australian Tax Office has some questionable claims in its sights this tax time.
Read more »
Veteran VC’s warning for start-ups amid tech sell-offBill Ferris says venture capital funds will need to rethink how they revalue portfolio companies, tipping more down rounds than up rounds.
Read more »
Everything you need to know before Origin IIIWhat time is the game, and which players are out after game two? Everything you need to know ahead of the series decider on Wednesday.
Read more »
EML’s woes deepen, tipping ASX to a 1.1pc lossThe S&P/ASX 200 Index dropped 1.1 per cent to 6602.2. EML Payments fell 24.6 per cent and Costa Group 8 per cent. Iron ore futures dropped 4.7 per cent to $US107.60.
Read more »