Getting the most out of your tax deductions requires your accountant, financial advisor and legal representative to work together
Check out this article from the IPA outlining how to maximise deductions for small to medium sized business this financial year.
What do you need to know?
With a recent surge in Australian investment in crypto assets the ATO is taking a keen interest in ensuring these investment transactions are recorded correctly on all 2020-21 tax returns. The ATO will be taking an up front approach and writing to a number of Australian Tax payers that have crypto assets in order to prompt them to lodge their 2021 tax returns.
ATO assistant commissioner Tim Loh said the ATO was concerned that the anonymous nature of trading crypto assets led taxpayers to believe their investments were untraceable. He said this year the ATO will head into tax time with access to more data and the ability to track those investing in crypto assets more closely.
What records do you need to keep?
The nature of crypto unfortunately means MORE record keeping requirements.
You need to keep the following records in relation to your cryptocurrency transactions:
- the date of the transactions
- the value of the cryptocurrency in Australian dollars at the time of the transaction (which can be taken from a reputable online exchange)
- what the transaction was for and who the other party was (even if it’s just their cryptocurrency address).
The sorts of records you should keep include:
- receipts of purchase or transfer of cryptocurrency
- exchange records
- records of agent, accountant and legal costs
- digital wallet records and keys
- software costs related to managing your tax affairs
You can use an accountant or third-party software to help meet your record-keeping obligations and working out your tax.
Should you have any questions or require any help with crypto this tax time don’t hesitate to get in touch