Crypto Investor? You Need the Crypto Tax Accountant Team at Oracle

The Cryptotax Experts by Oracle

Our accountants are experts at calculating your taxation
obligations and ensuring you remain compliant. We’ll help you keep track of the necessary records you need to file at tax time.

Crypto Investor? You Need The Crypto Tax Accountant Team At Oracle

Whether you’re new to crypto or a seasoned investor, it’s imperative that you understand how tax on cryptocurrency works, and your reporting requirements to the ATO. With the government placing even more emphasis on the way your electronic assets are tracked, we can help you to navigate the complexities of tax on cryptocurrency assets.

Our leading crypto tax accountant team are experts at calculating your taxation obligations and ensuring you remain compliant. We’ll help you keep track of the necessary records you need to file at tax time.

Whether you’re a long-term holder or a day trader, minimising your tax on cryptocurrency is all about keeping the right records for your crypto tax accountant, and understanding how your trades and mining create wealth.

Do you need help lodging your tax return with crypto income or expenses? Why not book a consultation with one of our leading crypto tax accountant team.

Crypto Tax Accountant

FAQ’s

 

Need help understanding crypto? Let a crypto tax accountant help!

Here are some of the most asked questions that our crypto tax accountant experts get asked!

 

What is cryptocurrency?

Cryptocurrency is its own type of asset: think of it as an electronic, global alternative to cash. It is not physical: it exists only in digital format and unlike many other currencies, it is not backed by a specific government or organisation. As with any other asset, there is tax on cryptocurrency profits that you will need to pay as your assets grow in value.

What is the blockchain?

The blockchain is a digital, public list of records that cannot be changed or deleted. When a person transfers bitcoin to someone else, this transaction is written to the blockchain. This “registry” is processed in a decentralised, permissionless and secure environment. That is, no one government, bank, organisation, or individual controls or centralises the system.

What is “proof of work”?

Cryptocurrency miners computers solve complex puzzles, and the first miner to solve each puzzle provides proof and as a reward creates the next block in the chain. Creating the block secures them many transactions to settle. The winning miner can then collect fees attached to the crypto transactions and depending on the cryptocurrency at play, may also be entitled to create a certain amount of new cryptocurrency. This is how assets are created and tax on cryptocurrency works for miners

What do I pay tax on?

If you’ve made a gain on any cryptocurrency, you may have to pay tax on that gain. With tax on cryptocurrency, you don’t have to pay tax on the full sale price, just the gain you have made. Equally, if you have lost money on your cryptocurrency, the tax on cryptocurrency structure means that, in some cases, you can offset that loss against other income. In other cases, you can use that loss against future crypto gains. Making the most of this is, why you should speak to a proven crypto tax accountant, so that you’re not paying too much tax (and that you’re covered if you’re audited).

No matter if you invested into cryptocurrency as an individual, company, trust or even as a self-managed super fund; you must declare gains and losses and pay the relevant tax on cryptocurrency.

I’ve heard that the tax treatment on my crypto can be different if I am investor or a day trader, is that right?

Yes! Someone who buys crypto to hold and invest will be taxed and treated differently by the Australian taxation system than someone who actively trades the asset, or perhaps is a miner as well. The taxation system is complex and determining your status as a trader or simply a long-term investor is best done with the help of an expert, and this is another reason you should speak to a proven crypto tax accountant, to ensure that you’re properly representing yourself to the ATO.

What is Bitcoin?

Bitcoin was the first cryptocurrency released to the world. It originated in 2009 and was created using blockchain technology. Since the inception of Bitcoin, there have been many other cryptocurrencies developed.

Bitcoin’s value is awarded to it by its users… supply and demand essentially. And because the number of Bitcoin internationally is capped at 21 million units, no government or person can inflate the money supply.

What is cryptocurrency mining?

Cryptocurrency mining is the operation of computer hardware and software to receive, verify and transmit transactions throughout the crypto network. It is, in essence, the building blocks of creating the blockchain.

What is a “wallet” and an “exchange”?

Think of a crypto wallet like a real leather wallet that keeps your money in one spot! It is a digital storage device used to hold, send, and receive cryptocurrencies.
An exchange is simply a digital marketplace to buy or trade cryptocurrencies. That’s where you’ll make the money that the tax on cryptocurrency applies to.

Just how does tax on cryptocurrency work?

If you have invested in cryptocurrency, then you will be required to declare any gains or losses you have made and that means you might be liable for a tax on the cryptocurrency. Gains can arise from sale of cryptocurrency back to “normal” currency (eg: AUD or USD). Gains can also arise from using cryptocurrency to buy a good or service, or to pay off debts. Gains can even occur when you trade one cryptocurrency for another. Confused? Don’t worry, that’s what your crypto tax accountant is here for!

Tax On Cryptocurrency

What info should I get ready for tax time and the tax on cryptocurrency?

When you speak to your crypto tax accountant at Oracle, to allow us to prepare your tax return, we will require the following key documents

  • Copy of last years (last lodged) tax return.
  • All CSV/Spreadsheet file exports from your exchanges and wallets revealing all your trades, deposits and withdrawals up to 30 June of the relevant tax year.
  • A listing of the number of each cryptocurrency you own at 30 June.
  • Records of any other spend you have incurred such as mining costs, hardware purchases and wallet costs.
  • Records of your other income such as salary & wages, rental income, and expenses, share trading End of Financial Year reports, managed investment tax statements.
  • Records of your non-crypto tax deductions such as motor vehicle expenses and work-related tax deductions
  • Anything else you normally prepare for tax time. A crypto tax accountant will need to see your investments in their full context.

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DID YOU KNOW?

A few key steps at 30 June can make your tax on cryptocurrency process easier. It takes 5 minutes!

  1. Keep a record of the number of each crypto you owned at 30 June. Many people simply take a screenshot of their exchanges and wallets at that date.
  2. Download your transaction history for the full tax year, in CSV format, and save in a safe spot.
  3. Download deposit and withdrawal history, in CSV format, and save in a safe spot.

 

 

Not sure what to do next?

Contact a crypto tax accountant for tailored advice and assistance with your tax obligations.

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