ATO Targets Cryptocurrency Sales
The ATO is shortly set to undertake a mass mailout of up to 350,000 individuals prompting them to ensure they declare gains made on sale of cryptocurrencies.
Cryptocurrencies are considered to be a form of property and therefore a capital asset for capital gains tax purposes. Gains are realised not only on sale of cryptocurrencies but on conversion to other cryptocurrencies or foreign currencies or when traded for other goods or services.
In April 2019 the ATO obtained cryptocurrency transaction data from currency exchanges on taxpayers who have bought and sold cryptocurrency. The ATO plans to use that information to target individuals who may not have declared a capital gain event from the sale of cryptocurrency in their 2018 Income Tax Returns.
If you are unsure of your cryptocurrency tax obligations contact our office for a confidential conversation with one of our tax advisors.