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<p>The curtain has just fallen on another financial year, and Australian crypto investors now find themselves at a familiar crossroads — navigating the complexities of declaring their crypto activities for tax purposes. With the Australian Taxation Office (ATO) intensifying its scrutiny on crypto transactions, ensuring accuracy in your tax declaration has never been more critical.</p><p>This year, we’ve partnered with<a href="https://www.syla.com.au/" rel="noopener noreferrer" target="_blank"> <u>Syla</u></a>, to provide some tips for a hassle-free tax reporting.</p><h2><strong>Understanding your crypto tax obligations</strong></h2><p>Before diving into the mechanics of calculating your crypto taxes, let's address the elephant in the room: Why do crypto investments concern the ATO?</p><p>Well, the ATO treats cryptocurrency as a form of property and subjects it to Capital Gains Tax (CGT). This means if you've sold, traded, spent, or gifted crypto, you're required to declare any capital gain or loss from those transactions.</p><p>Now, many investors believe that if they don’t withdraw their profits to an Australian bank account, they aren’t liable for tax.</p><p>This, unfortunately, is a pitfall you need to avoid.</p><p>The ATO requires reporting on all gains, regardless of whether they're converted to AUD or not. Every transaction — no matter how small — needs to be tracked and reported.</p><h2><strong>Steps to calculate your crypto taxes</strong></h2><h3>1. Collect your transaction history</h3><p>Record keeping is key. You can start by logging in to your Coinstash account, and downloading a copy of your transaction history from the Transactions page. This statement includes every trade, sale, purchase, and any other transactions which occurred on your account and is designed to meet the ATO record keeping requirements for cryptocurrency.</p><p>If you use Syla or another crypto tax software, you can also sync your transactions directly by setting up an API sync directly from Coinstash. This is also a great way to keep track of your tax position through the year.</p><h3>2. Select the right crypto tax software</h3><p>When it's time to determine your capital gains or losses — essentially, the fluctuation in value from when you acquired your cryptocurrency to when you parted with it — you need something dependable to avoid unnecessary headaches, a crypto tax software.</p><p>When deciding which crypto tax calculator to select, you should consider the following:</p><ul><li>Has the software been designed for Australian tax?</li><li>What is the cost, particularly if you have a lot of transactions?</li><li>Does it do any tax optimisation for you?</li></ul><p>We recommend giving Syla a go. It’s an Australian company, and their<a href="https://www.syla.com.au/" rel="noopener noreferrer" target="_blank"> crypto tax calculator</a> has been designed specifically to handle Australian tax, it also has built-in tax optimisation to help reduce your taxable income.</p><h2><strong>Strategic approaches to minimise your crypto tax bill</strong></h2><h3>3. Leverage tax-loss harvesting</h3><p>One effective strategy to reduce your crypto tax liability is tax-loss harvesting. This involves selling cryptocurrencies that are at a loss and using these losses to offset your capital gains. It’s a practical approach that can optimise your tax outcome, but timing and careful calculation are essential. Make sure you’re not doing a wash sale where you sell and immediately rebuy the same assets.</p><h3>4. Hold assets to benefit from long-term gains</h3><p>Assets held for over a year typically qualify for a CGT discount — currently, this is 50% for individuals. This means holding your cryptocurrency for the long term can decrease the tax you owe on gains. This strategy requires patience and some tolerance for market fluctuations.</p><h3>5. Regularly review and plan your crypto portfolio</h3><p>Effective tax planning shouldn’t happen once a year. Instead, it should be an ongoing process. Regular reviews of your crypto portfolio can help you make informed decisions throughout the entire year. Not only does this prepare you for tax time, but you’ll also align closely with best investment practices.</p><h2><strong>Accurate reporting to sort out your tax return</strong></h2><h3>6. Lodging your tax return</h3><p>When it's time to lodge your tax return, accuracy is key. Your tax software will help you to generate a Crypto Tax Report containing all of your tax outcomes. This detailed and precise documentation is invaluable and can be provided to your tax agent, or you can use it yourself to self-lodge your own tax return.</p><h3>7. Stay informed on regulatory changes</h3><p>The landscape of cryptocurrency taxation is ever-evolving. Staying updated with the latest ATO guidelines and regulatory changes is crucial and is a responsibility that you need to take seriously. Using software that is always updated to reflect the latest regulations provides you with peace of mind and an assurance of compliance.</p><h2><strong>Tax wrap-up</strong></h2><p>As the Australian crypto landscape continues to evolve, so does the intricacy of crypto taxation. But with the right tools and approach, declaring your crypto taxes doesn't have to be daunting. By leveraging the power of crypto tax software, you can embrace the new financial year with open arms and a clean tax slate, knowing that you’re well-prepared to meet your obligations without the hassle.</p><h2><strong>About Syla</strong></h2><p>Syla is an Australian crypto tax software and an official tax partner for Coinstash. Created by a team of tax professionals, you can get your ATO crypto tax report which is optimised to save you tax.</p><ul><li>Best value - affordable plans supporting up to 100,000 transactions.</li><li>Maximise your tax savings - using Syla’s proprietary LTFO method.</li><li>Private wealth - support for company, trust and SMSF accounts.</li></ul><h2>Special offer</h2><p>Use the code STASH5 at checkout to get your first year of Syla’s Budget Plan for only $5. Valid until 31 July 2024.</p><p>Use the code STASH50 at checkout to get 50% off your first year on any Syla plan. Valid until 31 October 2024.</p><p>For more detailed guidance on managing your crypto taxes, visit<a href="https://syla.com.au/" rel="noopener noreferrer" target="_blank"> <u>Syla's official website</u></a>.</p><p><br></p>

<p><strong style="font-size: 10px;">Disclaimer</strong><span style="font-size: 10px;">: This article and its contents are intended for informational purposes only, and do not constitute financial advice from TWMT Pty Ltd, trading as Coinstash AU ("Coinstash"). Coinstash is not a licensed financial advisor and does not provide financial advice. You should consider seeking financial, legal, tax or other professional advice to check how the information relates to your unique circumstances. Coinstash shall not be held responsible or liable for any losses, whether due to negligence or otherwise, stemming from the use of, or reliance upon, the information provided directly or indirectly in this article.</span> </p>

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On Track for Your 2024 Tax Return: A Stress-Free Guide for Investors

<p>Sold some bags in the last bull run? This guide will clear up any tax-related questions and give you a complete understanding of how to handle your crypto taxes for 2024. Stay informed and ensure you're meeting your tax obligations with ease.</p><h2><strong>Do I Have to Pay Tax on Crypto in Australia?</strong></h2><p>Yes, cryptocurrency is taxable in Australia. The ATO considers crypto assets like Bitcoin as <a href="https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/what-are-crypto-assets" rel="noopener noreferrer" target="_blank">property</a>, subject to capital gains tax (CGT). When you sell, trade, or dispose of your cryptocurrency, you'll need to pay taxes on any gains made. Understanding these tax obligations ensures compliance and helps you make more tax-efficient decisions for your crypto investments.</p><h3><strong>Do I Need to Declare Small Crypto Amounts?</strong></h3><p>Yes, you must declare all crypto transactions, regardless of the amount. It’s a legal obligation to report every transaction to the ATO, no matter how small. Declaring even minor amounts ensures compliance, maintains transparency, and helps avoid potential penalties in the future.</p><h3><strong>Can I Claim a Crypto Loss on My Taxes?</strong></h3><p>Yes, you can claim a crypto loss, and it can be more beneficial than you think. Declaring your crypto loss creates a capital loss that can be carried forward indefinitely, allowing you to offset future capital gains. This reduces your taxable income in later years, making today’s losses a smart strategy for future tax efficiency.</p><h2><strong>Tax implications of Coinstash transactions</strong></h2><p>Understanding how different types of transactions on Coinstash can impact your tax obligations is crucial:</p><p><strong>- Fiat to crypto trades:</strong> When you exchange fiat currency for cryptocurrency, it's not a taxable event. However, when you later dispose of the crypto, it will be a CGT event and you’ll need to calculate the tax outcome.</p><p><br></p><p><strong>- Tax on Bundles:</strong> Coinstash offers a unique feature, 'bundles', allowing users to buy a diversified portfolio of cryptocurrency in a single transaction. Bundles work the same way as individual trades, except there’s more of them. Each crypto within the bundle will be subject to CGT upon disposal.</p><p><br></p><p><strong>- Coinstash Earn and tax on rewards:</strong> Crypto rewards earned through Coinstash are considered taxable income at their market value on the day they are received. The taxation of crypto rewards points is still a relatively new concept, and while the ATO has yet to release specific guidelines, existing rulings regarding similar rewards programs can provide some direction. The ATO's <a href="https://www.ato.gov.au/law/view/document?DocID=TXR/TR19996/NAT/ATO/00001" rel="noopener noreferrer" target="_blank"><u>ruling on frequent flyer programs</u></a>, for instance, offers an analogous situation that you can look at to get a deeper understanding.</p><h2><strong>Calculating capital gains on crypto</strong></h2><p>Calculating capital gains on cryptocurrency in Australia involves a few steps. Here's a simplified guide to help you understand the process:</p><p><br></p><p><strong>1. Identify the cost basis:</strong> The cost basis of your cryptocurrency is the amount you initially paid to acquire it, including any associated costs such as fees or commissions.</p><p><br></p><p><strong>2. Calculate the proceeds from the sale:</strong> This is the amount you received when you sold the cryptocurrency. If you traded it for another crypto, then the market value of the new crypto at the time of the trade is used.</p><p><br></p><p><strong>3. Calculate the capital gain or loss:</strong> Subtract the cost basis from the proceeds of the sale. If the result is positive, you've made a capital gain. If it's negative, you've made a capital loss.</p><p><br></p><p><strong>4. Apply any discounts:</strong> If you've held the cryptocurrency for more than 12 months, you're eligible for the 50% CGT discount. In practice, you may only need to pay tax on 50% of the capital gain.</p><p><br></p><p><strong>5. Aggregate your capital gains and losses:</strong> Add up all your capital gains and losses from all your cryptocurrency transactions within the tax year and apply the 50% CGT discount where eligible. If the total is positive, you have a net capital gain and will need to pay tax on this amount. If it's negative, you have a net capital loss which you can carry forward to offset future capital gains.</p><p><br></p><p>Remember, cryptocurrency tax calculations can get complex quickly, especially with numerous transactions. Using specialised crypto tax software like Syla can save you time and ensure accuracy.</p><h2><strong>How to pay less tax on your crypto</strong></h2><p>There are several strategies to optimise and save tax on your crypto investments:</p><p><br></p><p><strong>- Claim the 50% CGT discount:</strong> If you hold your cryptocurrency for over 12 months, then as an individual, you can claim a 50% CGT discount. This is the most important tax incentive for achieving long-term wealth growth in Australia.</p><p><br></p><p><strong>- Parcel matching:</strong> FIFO (First-In, First-Out) is a common method for tracking your crypto sales, but it's not always the most tax-efficient. In Australia, almost any parcel method can be used, so it's best to choose the one that results in the lowest tax. Syla pioneered the use of an algorithm called LTFO (Lowest-Tax First-Out), that selects the most tax efficient parcel to dispose, and helps Coinstashers to save on tax.</p><p><br></p><p><strong>- SMSF tax environment:</strong> When appropriate, a Self-Managed Super Fund (SMSF) can provide a highly tax-efficient setting for amassing retirement wealth. With the favourable tax concessions offered within an SMSF, you could benefit from effective tax rates as low as 10% on long-term capital gains, and even 0% once you reach retirement. Interestingly, an SMSF is the only way to invest your superannuation funds directly into cryptocurrency. If you're comfortable with a longer-term strategy and can wait until retirement age, this approach can prove highly beneficial for many Australians.</p><p><br></p><p><strong>- Company and trust structures:</strong> A company structure may offer a lower corporate tax rate of 25% or 30% for trading activities, while a trust structure can provide income splitting opportunities, often making it suitable for larger investment portfolios.</p><h2><strong>How do I calculate my taxes?</strong></h2><p>Calculating capital gains can be complicated due to the complexity of the calculations and the quantity of crypto trades. That's why we recommend using crypto tax software like Syla. It offers an accurate, time-saving solution that not only ensures you comply with ATO guidelines, but also leads to lower tax outcomes.</p><h2><strong>How do I lodge my tax return?</strong></h2><p>With your calculations ready, it's time to lodge your return:</p><p>- Sign up for an account on <a href="https://www.syla.com.au/" rel="noopener noreferrer" target="_blank"><u>Syla</u></a>.</p><p>- Download your trading history and savings history from Coinstash and import it.</p><p>- Download your ATO-compliant Crypto Tax Report.</p><p>- Lodge your tax return through myTax (on myGov) or use a tax agent.</p><h2><strong>What If I haven't lodged for the last two years?</strong></h2><p>If you've neglected your crypto tax obligations in the past, it's still possible to lodge your old tax returns or amend prior years. It's crucial to get up to date as soon as possible to avoid penalties. It's recommended to use a tax professional in this case to ensure you're meeting all ATO requirements.</p><h2><strong>Deadline for lodging your tax return</strong></h2><p>The usual deadline for lodging tax returns in Australia is October 31.</p><p><br></p><p>If you're using a tax agent, you can get this deadline extended to 15 May. If you're unable to meet the deadline, it's crucial to apply for an extension or contact the ATO to discuss your situation.</p><h2><strong>About Syla</strong></h2><p>With up to 47% of your crypto gains going to the tax office, it's clear that tax has the most significant impact on every crypto investment portfolio in Australia.</p><p><br></p><p>Syla, an Australian-only crypto tax software, has been developed by tax and legal professionals. It has Australia’s most accurate crypto tax calculator module, that minimises tax using an LTFO (Lowest-Tax First-Out) algorithm, purpose-built for Australian crypto investors.</p><p><br></p><p>Easily import your trading history into Syla and optimise your crypto tax without needing to be an expert. After generating your ATO-compliant Crypto Tax Report, you can use it to complete your tax return through myTax (on myGov) or provide it to your tax agent.</p><p><br></p><p>With support for up to 10,000 transactions at a single low flat-fee, Syla is Australia's most affordable crypto tax software, ensuring you pay the lowest crypto tax.</p><p><br></p><p>To help you get started, Syla is offering a special discount for Coinstash users. Use the code <strong>STASHTAX</strong> for a 30% discount and start saving on tax.</p>

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