Crypto Loss - Amend PY's return or report al in this year's return?

[#1]

Long post - please bear with me.

The main question - Can I report all the losses fromm 2017/18 and 2018/19 in this years return, even if some of it might have been reported in last years return but none has been applied for sure as I have not made any capital gains whatsoever EVER OR should I amend 2018's and 2019's tax return ?

Hi all,

I got the automated crypto disposed 'email from ATO', so thought I should take this opportunity to properly report my crypto losses till date (literally no gain yet lol) so can offset possible gains in the future.

Now, here is the dumb part, I checked last years return to see if reported any losses (which I did) but didn't check for it to be carried forward. So, I don't know how much I reported and I should have carried them forward as nothing has been applied to offset gains.

Can I re-report all loses in this years return (some might be repeated)since all the CGT events took place between Dec 2017 and May 2019, i.e. no CGT's this year and no of the realised loss has been applied. If this is the case, I will also be able to check the carry forward box so this info then prefilled in the next year's tax return.

My Research:

Link: I have copied the relevant bit from that page but just wanna confirm I aint missing anything here,

https://www.ato.gov.au/Individuals/myTax/2020/In-detail/Capital-gains/?=redirected_mytax20CGT#CGTexe...

Enter your Net capital gain*.* This is the amount remaining after applying to your current year capital gains, whichever of the following items are relevant to you (in the order listed):

1. 2019–20 capital losses

2. unapplied net capital losses from earlier years

3. any CGT discounts

4. the small business 50% active asset reduction

5. the small business retirement exemption or rollover.

So I wanna if I need to amend PY returns or can all this be done in this years return with current captial gain 0, net capital gain = capital losses from PYs including fees and then will check the box for it to be carried forward so it autofollows on next year.

Edit 1: in case this is not clear, I can't see what the figure was, if I try and View or even Amend last year return online.

Cheers!

[#2]

Is there such a thing as carrying a profit forward? Would this be electing to doing a stocktake for trading stock, in the business of trading crypto?

Good question OP hope you find your answer.

[#3]

Carrying forward losses

[#4 · Accepted solution]

Hi @unclesamgoawale 

You need to report each transaction in the correct year. If you need to add or change what has been reported you would  need to amend the relevant returns. Yes until you use them they are reported in each return.

If what you reported previously is correct you keep reporting it as a loss to carry forward. If there have been no gains to report the figure should not change.

[#5]

@KylieATO  thanks heaps Kylie!

 The issue is that I haven't reported my losses properly and that I didn't choose looses to be carried forward, so will need to amend the relevant returns

> Yes until you use them they are reported in each return.

- I assume the carry forward field takes care of this, does it need to done manually each year assuming no gains?

Also, can I get this years return out of the way since no CGT events took place in 19/20? and then do amendments? If yes, do I need to complete 'Captial Gains and Losses' action in this years' return? If yes, Do I say:

Total current year capital gains  = 0

Net capital gain =  0  as it can't be negative 

Net capital loss carried forward to later income years - show the calculated loss amount?

Super appreciate all the help!

Cheers

[#6]

Hi @unclesamgoawale,

Thank you for your reply. You report the capital gain or loss in the year you sold or disposed of the asset. If you had a gain in a previous year the TOTAL gain would still be reported, however it would be reduced by the loss amount and reported at NET.

If you only incurred losses or ended up with a negative amount after deducting loss amount from the gain this will be reported at NET capital loss carried forward. The loss amount carried forward can be used to offset future capital gains. 

You will need to amend previous years if the capital gain or loss was not reported correctly.

Hope this helps.

Reagrds,

Jodie2.   

[#7]

Thanks again @Jodie_ATO - Can I get this years out of the way first and then amend all the relevant returns later since no CGT events took place in 19/20? I realise now I may need to amend this years return as well but it will just be a copy/paste from PY years. and yes it's only losses from previous years.

Reason is I need my return processed asap, I'm unemployed and currently stranded overseas  and need the money asap -  I have all the necesary docos to prove this. Futhrmore, I can't access exchanges from where I'm so can't caculate CGT until I'm back anyway.

Thanking you in anticipation. 

[#8]

you'd need to ammend the earliest one with errors in terms of crypto, so that loss can be quantified in the correct year or you're just carrying on the error into this year -- instead of solving your issue with unclaimed losses/gains.

the urgency would start with the oldest return and work its way forward to the most current.

this way you're factoring in everything you need to for the year before also this helps determine correct cost base for each subsequent trade, if you rectify your early years and resubmit them with what you know now..

[#9]

Thanks @treefairy as much as I want to report everything properly and be done with it,  I'm currently stranded overseas and running out savings with no job. So need the money asap. Futhermore, I can't access all the exchanges from where I'm in so can't report CGT accurately until I get back. so the question is can I get this years return out of the way first and do amendments later ? since no CGT in the last FY and all my CGT event have been significant losses and no gains to offset till now. What do you think? 

[#10]

considering the circumstances, probably hope you find you answer somewhere on this forum or the website