Tax Time: Capital Gains From Crypto Assets Are A Priority For The ATO
Crypto assets will be front and center at the ATO come tax time as the organization seeks to clamp down on mistakes made by Australians.
Capital gains from crypto assets are the focus of the Australian Taxation Office (ATO) for Tax Time 2022, as the agency seeks to crack down on mistakes made by the public.
The ATO announced its four priority areas for this year’s Tax Time on Monday, singling out Crypto as a potential area of concern.
ATO Deputy Commissioner Tim Loh said Crypto is one of the “troublesome areas where we see people making mistakes.”
“Crypto is a popular type of asset and we expect to see more capital gains or losses reported on tax returns this year. Remember that you cannot offset your crypto losses with your salary and your wages,” Mr. Loh said.
“Through our data collection processes, we know that many Australians are buying, selling or trading coins and digital assets, so it’s important that people understand what this means for their tax obligations.”
The ATO said that if a person had any Crypto asset during this financial year, including non-fungible tokens (NFTs), they would have to calculate a capital gain or loss and report it on their tax return. .
This also applies to property and shares.
Other areas of focus for the agency include record keeping, with the ATO saying it will take legal action against anyone who deliberately tries to increase their reimbursement, falsifies records or cannot substantiate their claims.
Work-related expenses are another area of focus for the ATO, as many Australians are still working from home.
Mr Loh said they would expect to see a “corresponding reduction” in spending on cars, clothes and other work-related expenses if people were still out of the office.
Rental income and deductions will also be targeted, with rental property owners being urged to ensure that any income they have received from rentals is on their tax return.