Cryptocurrency and taxation reporting

Discussion in 'Digital Currencies' started by mmm....shiney!, Feb 18, 2021.

  1. heartastack

    heartastack Well-Known Member Silver Stacker

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    I haven't traded since 2016 and my etax accountants said I'd be flagged.
     
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  2. willrocks

    willrocks Well-Known Member Silver Stacker

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    They said you would be flagged, or you were flagged?
     
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  3. DavidW

    DavidW Member

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    Am in the process of doing my ITR and the following notice was in the Capital Gains and Losses section……..

    Cryptocurrency
    You held or disposed of cryptocurrency that may have resulted in a capital gains tax event. Visit tax treatment of cryptocurrenciesOpens in new window to learn more about your tax obligations.
     
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  4. heartastack

    heartastack Well-Known Member Silver Stacker

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    As in I've been marked as a 'crypto owner in 2021'. So I just said I don't know how, and hope they don't waste their time on an audit.

    Edit: Sorry saw the grammar error - 'been' not be. cheers
     
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  5. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Mate uses coinjar and got hit up for CGT when he did his latest tax submission via myGov. I have played with Binance before and didn't get any prefills or prompts (made a CGT loss anyway)
     
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  6. heartastack

    heartastack Well-Known Member Silver Stacker

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    Ah, interesting. I used CoinJar too so they probably just report registered accounts.
     
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  7. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Someone here once said that if you’re transacting amounts less than a few thousand then Binance doesn’t report it.

    Might’ve been @dozerz
     
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  8. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Was below $5k in value so that might be why
     
  9. SULLA

    SULLA Member Silver Stacker

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    I too am using Koinly, which I found to be very easy as long as you can access your API's or provide CSV files. Total of 5 exchanges (aka wallets), used in 2017-18, 2018-19 years. I dreaded the thought of working out the details of crypto trades - but Koinly did that all very nicely. Very smooth!

    There are lots of ways the ATO can see what you are doing mainly due to KYC info provided when signing up to an xch. I did not receive an ATO letter, but I suspect they will initially chase the easiest big fish / WHALES? But they will get to the minnows eventually! If you went through KYC - that is like HOOK, LINE and SINKER! They gothcha!

    Please do your due diligence as ATO treats stuff like crypto staking, mining, airdrops and similar as income even though you may not have disposed of the reward/s.
    The issue in AU is that Centrelink treats cryptos as an asset while the ATO is only interested when you dispose of the "asset" (CGT) or earn "income" via staking, mining or airdrop etc.
    So back in April, I declared my Theta assets to CL and asked that they cancel my aged pension. Which they happily did!

    I am not a Binance customer but Binance gave a 20% Koinly discount a few days ago.

    Exciting times ahead fellow Stackers! ENJOY!

    Edited by moderator.
     
    Last edited by a moderator: Aug 7, 2021
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  10. Ag bullet

    Ag bullet Well-Known Member

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    "It's totally decentralized......"
     
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  11. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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  12. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    One problem I've encountered recently with importing CSV files is that some of the buy transactions are doubled up and therefore the balances in the wallets on Koinly don't reflect what's actually in them. I'm going through the problem assets and deleting the double ups ie two separate purchases for the same coin at the same time. I don't know what caused it, it's only been this financial year.
     
  13. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Handy little app for creating CSV files to download if some blockchains aren't supported by whatever crypto currency tax software you use eg Solana in Koinly.

    https://stake.tax/about
     
  14. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    I've stopped using the crypto.com exchange and will limit my Binance usage as much as possible, both exchanges present problems when trying to reconcile transactions with tax reporting software. The API on Binance doesn't record AUD deposits and the crypto.com transaction records are just a complete PITA.
     

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