Gotta love the aus gov :D The best is how you pay income tax on staking rewards and it immediately drops then becomes a CGT loss when selling and an absolute joke to when you have thousands of dollars of income tax but don't have the money because you have thousands of dollars of loss that you will never make back. I also don't understand why it's not treated the same as personal items or collectables when it comes to cgt its different to stocks and some are used as collectables such as nfts.🤦♂🤦♂🤦♂🤦♂🤦♂🤦♂🤦♂🤦♂
Yeah the staking rewards being income causes a lot of issues. There is definitely some interest debate around this area. NFTs as collectables makes sense to me in some cases. The problem is the ATO have stated some really broad things which don't make a lot of sense...
This is my biggest nightmare that I will owe a lot of money due to staking rewards before I have realised one cent of profit. Just doesn't seem very fair.
@@gregbakes39 Yeah it isn't a very system in my opinion. The only current way to avoid that happening is to sell your rewards as soon as you receive them or at least enough to cover the tax side of things. Other than that, you just have to be aware of the potential issue.
@@gregbakes39 Yeah but that's irrelevant if you're concerned about holding an asset that is in a loss position. If it's a loss, the discount doesn't matter anyway.
Can the ATO track activity on binance? Ive moved everything to Coinbase a few months ago to make things abit easier for myself come tax time as Coinbase recognizes AUD. So didnt have to swap from AUD-USDT- whatever crypto coin.
Hi mate, if i m investing the money and dont withdraw then still i have to tell the ato about capital gains? At the end if the financial year? And how about to make the deductions? Can we do it that when lodging tax returns?
If you sell crypto to crypto, you have a capital gains event. This has to be reported in your tax return. It has nothing to do with withdrawals. You report all income and deductions in your tax return.
They themselves won’t get it right. The best way to have done it, is to sell every single crypto so your loss is what you put in versus what you pulled out.
@@EthanRooshock I deeply regret not doing the same. Even with tax software takes weeks to months to reconcile everything. Best way is to buy off the grid or overseas with no kyc. Buying in Australia it’s better to just buy and hold long term with minimal transactions.
I did bought some crypto worth $3k and lost some money and I withdraw my all money ? I don’t know if I will be charged on that because I have no money .
They really should fix it up and make it easier...Otherwise other countries that have little to no tax on crypto will be laughing and welcoming Australians with open arms
Yeah I definitely agree that the countries that make it simple from a tax point of view have the ability to attract investment. Whether that is starting crypto based companies or wealthy investors.
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What are you finding to be the most challenging aspect of your crypto taxes?
Not financial advise but very good financial advise, thank you Ethan
No worries!
Gotta love the aus gov :D The best is how you pay income tax on staking rewards and it immediately drops then becomes a CGT loss when selling and an absolute joke to when you have thousands of dollars of income tax but don't have the money because you have thousands of dollars of loss that you will never make back.
I also don't understand why it's not treated the same as personal items or collectables when it comes to cgt its different to stocks and some are used as collectables such as nfts.🤦♂🤦♂🤦♂🤦♂🤦♂🤦♂🤦♂🤦♂
Yeah the staking rewards being income causes a lot of issues. There is definitely some interest debate around this area.
NFTs as collectables makes sense to me in some cases. The problem is the ATO have stated some really broad things which don't make a lot of sense...
This is my biggest nightmare that I will owe a lot of money due to staking rewards before I have realised one cent of profit. Just doesn't seem very fair.
@@gregbakes39 Yeah it isn't a very system in my opinion. The only current way to avoid that happening is to sell your rewards as soon as you receive them or at least enough to cover the tax side of things. Other than that, you just have to be aware of the potential issue.
@@EthanRooshock Then you lose the CGT discount. Basically no one wins except the ATO.
@@gregbakes39 Yeah but that's irrelevant if you're concerned about holding an asset that is in a loss position. If it's a loss, the discount doesn't matter anyway.
Great Vid Ethan! Thx for insights👍
No worries, thanks for watching!
Can the ATO track activity on binance? Ive moved everything to Coinbase a few months ago to make things abit easier for myself come tax time as Coinbase recognizes AUD. So didnt have to swap from AUD-USDT- whatever crypto coin.
If you have your TFN linked, they will be aware you have an account.
Hi mate, if i m investing the money and dont withdraw then still i have to tell the ato about capital gains? At the end if the financial year? And how about to make the deductions? Can we do it that when lodging tax returns?
If you sell crypto to crypto, you have a capital gains event. This has to be reported in your tax return. It has nothing to do with withdrawals. You report all income and deductions in your tax return.
They themselves won’t get it right. The best way to have done it, is to sell every single crypto so your loss is what you put in versus what you pulled out.
I've definitely seen some people do that just to keep things simple each year.
@@EthanRooshock I deeply regret not doing the same. Even with tax software takes weeks to months to reconcile everything. Best way is to buy off the grid or overseas with no kyc. Buying in Australia it’s better to just buy and hold long term with minimal transactions.
if you sell won't you have capital gains to pay if your up tho?
@@matthewfarr5742 you have to as well if you swap
I did bought some crypto worth $3k and lost some money and I withdraw my all money ?
I don’t know if I will be charged on that because I have no money .
If you've lost money, you will have a capital loss. This needs to be recorded in your return but it won't result in your owing tax.
They really should fix it up and make it easier...Otherwise other countries that have little to no tax on crypto will be laughing and welcoming Australians with open arms
Yeah I definitely agree that the countries that make it simple from a tax point of view have the ability to attract investment. Whether that is starting crypto based companies or wealthy investors.