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The growth of crypto-capital is becoming a key tax time for the ATO

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Capital gains from crypto-assets are key to the focus of the Australian Tax Administration (ATO) on Tax Time 2022 as the agency seeks to combat the mistakes made by the public.

On Monday, the ATO announced four priority areas for this year’s Tax Time, highlighting Crypto as a potential challenge.

ATA Assistant Commissioner Tim Lo said Crypto is one of the “problem areas where we see people making mistakes”.

“Crypto is a popular type of asset, and we expect that this year’s tax returns will indicate more capital gains or losses. Remember that you cannot compensate for your crypto-losses through wages and salaries, ”Mr Lo said.

“Through our data collection processes, we know that many Australians are buying, selling or exchanging digital coins and assets, so it’s important that people understand what this means for their tax liabilities.”

The ATO said that if a person has withdrawn cryptocurrencies, including irreplaceable tokens (NFT), in this fiscal year, he will need to calculate capital gains or capital losses and record this in his tax return.

This applies to both property and stocks.

Camera iconATO Assistant Commissioner Tim Lo said Crypto is one of the “problem areas” for the agency. Australian Taxation. Credit: Supplied

Other areas of the agency’s focus include record keeping, with the ATO saying it will take legal action against anyone who intentionally tries to increase their return, falsify records or is unable to substantiate their claims.

Work-related costs are another area of ​​interest for the ATA, as many Australians still work from home.

Mr Luo said they expect a “corresponding reduction” in spending on machinery, clothing and other work-related costs if people are still out of the office.

Rental income and deductions will also focus on the fact that the owners of the rental property will be asked to make sure that all the income they received from the rental is in their tax return.

https://thewest.com.au/business/crypto-capital-gains-a-key-tax-time-focus-for-ato-c-6812212

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