Crypto capital gains a key tax time focus for ATO
Capital gains from crypto assets are a key focus of the Australian Taxation Office (ATO) for Tax Time 2022, as the agency looks to crackdown on the mistakes the public are making.
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 assistant commissioner Tim Loh said Crypto is one of the “problem areas where we see people making mistakes”.
“Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember you can’t offset your crypto losses against your salary and wages,” Mr Loh said.
“Through our data collection processes, we know that many Aussies are buying, selling or exchanging digital coins and assets so it’s important people understand what this means for their tax obligations.”
The ATO said if a person disposed of a Crypto asset this financial year, including non-fungible tokens (NFTs), they will need to calculate a capital gain or capital loss and record it in their tax return.
This also applies to property and shares.
The 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 refund, falsify records or cannot substantiate their claims.
Work-related expenses are another area of interest for the ATO as many Australians still working from home.
Mr Loh said they would expect to see a “corresponding reduction” in car, clothing and other work-related expenses if people are still out of the office.
Rental income and deductions will also be focused on, with rental property owners being told to make sure all the income they have received from the rental is in their tax return.
Originally published as Crypto capital gains a key tax time focus for ATO
Get the latest news from thewest.com.au in your inbox.
Sign up for our emails