All my countrymen from down under! Finally, it’s Australian tax season, which means you must decide how to report your cryptocurrency gains on your tax return. Yes, you would have made a lot of money in crypto earlier this year, but the reality is that income must be taxed. However, you cannot accept the notion that your hard-earned money would be wasted on an accountant. What should be done if such a scenario arises?
You can certainly create your own Australian tax return. We already know you’re a prodigy! But isn’t it true that not everyone can? They must be trying to figure out what information they need to present to the ATO. You employ an accountant if you can’t handle things on your own. He charges you some grand, which we assure you is not worth it! Kindly, the new kid on the block, will take care of everything for you. Let’s take a look at how you may use Koinly to file your income tax return.
Do Australians have to pay taxes on their cryptocurrency gains?
According to official guidelines from the Australian Taxation Office (ATO), you must pay tax every time you trade, sell, or use cryptocurrencies to pay for goods/items, according to official guidelines from the Australian Taxation Office (ATO). A cryptocurrency exchange is also a taxable item if you make a profit from the transaction… For example, if you sell Bitcoin for Ripple, the ATO and other taxing authorities will treat it as a sale of Bitcoin at the market price of the XRP you got.
Tell me about Koinly?
Kindly is free tax software that sums up your annual tax report in just a matter of 20 minutes. It’s super reliable and super easy to use! Who should not use Koinly? Only the ones who want to rain out their money on their accountants when they can do this on their part. Kindly is available in more than 20 countries and has an integration with most of the crypto platforms to get a hoard of Australian tax. It takes just minutes to integrate your ETH, BTC, Tezos, and other transactions into Koinly, sync your whole exchange trading history in one click, and generate an easy-to-fill tax return.
How does koinly make the Australian tax process easier?
Koinly imports your transactions, identifies all of the market prices when you traded, matches transfers across the wallets you hold, calculates your crypto gains/losses, and prepares your Australian tax returns for you automatically!
How to use Koinly?
Let’s Begin With Koinly ‘s How-To Guide. Signing up is the first step. You can sign up with your Coinbase, Google, or your email account to make this happen. The “send me” boxes can be unchecked if you do not wish to hear from Koinly.
Next, you will have to add your wallets that need to be taxed. There are a plethora of exchanges and digital wallets to choose from. Binance, Coinbase, Bittrex, and CoinSpot are a few popular exchanges, to name some.
When you click on your wallet, a box will appear where you may give a name to it. It’s now time to import the wallet’s contents. You’ll need your API secret and key in order to import data via the API.
Your.csv data may also be uploaded via the “order history” tab, and then you can retrieve it by clicking on both the send/receive CSV and purchase CSV buttons. After that, all you have to do is save the files to your computer and submit them to your Koinly account using the upload option. You must import your deposits/withdrawals and transactions for ALL years and not just the current financial year if you are using CSV files. The “import complete” box will appear once your files have been uploaded successfully. Click it.
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To view reports for a certain fiscal year, use the drop-down menu. Then, in Koinly, go to the “tax reports” tab up at the very top of the screen. After that, all you have to do is select a report type by scrolling down. The major reports you’ll use are ATO Report (myTax) or the “Complete Tax Report. This is dependent on whether or not you’re doing your crypto trading on a profit or loss account.
An income account signifies that you’ll need an Australian Business Number (ABN) and that you’ll need to include your trade activities in your company calendar. If you have a capital account, you must complete the CGT part and get the discounted CGT rate for the next 12 months.