Record Keeping for Cryptocurrency
You need to keep the following records in relation to your cryptocurrency transactions including:
- 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 (you will need to download an annual statement of transactions for your accountant),
- records of agent, accountant and legal costs,
- digital wallet records and keys,
- software costs related to managing your tax affairs.
For further information click below:
Tax Implications for Cryptocurrency
You will also need to be aware of what will trigger a CGT event on the disposal of cryptocurrency including:
- sell or gift cryptocurrency,
- trade or exchange cryptocurrency (including the disposal of one cryptocurrency for another cryptocurrency),
- convert cryptocurrency to fiat currency (a currency established by government regulation or law ), such as Australian dollars, or,
- use cryptocurrency to obtain goods or services.
For further information click below:
Can you hold Cryptocurrency in your SMSF – Yes, under specific circumstances. It must:
- be allowed under the fund’s trust deed,
- be in accordance with the fund’s investment strategy,
- comply with SISA and SISR regulatory requirements concerning investment restrictions.
For further information click below:
MMA Support
Please contact your accountant on 02 6672 4044 for further Cryptocurrency advice.
Updated: 15th December 2021
(BBC Picture, 2021)
