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How to declare past trades in cryptocurrency to ATO?

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Initiate

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Despite I use crypto for internatioanl money transfer purpose, I also have some tramsaction resulted with absolute loss (I was good at buying high and selling low during learner stage).

Recently came to know ATO will ask people about their crypto trade history.

Despite I declared my all income with no issue, I did not declare my losses from cryptocurrency because I was thinking I didn't make any money. If I declare those losses now starting from 14/06/2017, will I get penalized? Or I will be excused if I contact ATO by myself? How it's gonna work?

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Best answer

Community Support

Replies 0

Hi @bnesys,


Thanks for your post!  We can provide general information that may help with your situation.


If you identify as an investor and you have a net capital loss, you can use it to reduce a capital gain you may make in a later year; you cannot deduct a net capital loss from your other income. It’s important to keep records in relation to your cryptocurrency transactions. You must keep records of each cryptocurrency transaction to work out whether you have a made a capital gain or loss from each CGT event.

 

You can request an amendment of your income tax return, going online is the quickest and easiest way for you.  If you can’t request an online amendment you can still use the Request for amendment of income tax return for individuals form. Once you have completed the form, print it off and fax or post it to us with appropriate attachments.

 

It’s essential you clearly explain why you made the mistake or the reason for the change so we can assess your tax. If the amendment results in you paying more tax the penalty will be less in most cases because you have voluntarily told us. Remember to keep a copy for your records.

 

If this post helps, please give it a thumbs up!
Thanks @JodieM

5 REPLIES 5
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Taxicorn

Replies 4

So you have not declared losses from 2017 and 2018?

 

You can amend up to 2 years from the date of lodgement so I would amend those to years and carry forward the losses.

 

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Initiate

Replies 1

No I haven't decalred losses. I entered crypto stuff at the time everything was peak Smiley Happy) After that everyone knows what's happened. So if I ammend will I get penalized for this?

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Best answer

Community Support

Replies 0

Hi @bnesys,


Thanks for your post!  We can provide general information that may help with your situation.


If you identify as an investor and you have a net capital loss, you can use it to reduce a capital gain you may make in a later year; you cannot deduct a net capital loss from your other income. It’s important to keep records in relation to your cryptocurrency transactions. You must keep records of each cryptocurrency transaction to work out whether you have a made a capital gain or loss from each CGT event.

 

You can request an amendment of your income tax return, going online is the quickest and easiest way for you.  If you can’t request an online amendment you can still use the Request for amendment of income tax return for individuals form. Once you have completed the form, print it off and fax or post it to us with appropriate attachments.

 

It’s essential you clearly explain why you made the mistake or the reason for the change so we can assess your tax. If the amendment results in you paying more tax the penalty will be less in most cases because you have voluntarily told us. Remember to keep a copy for your records.

 

If this post helps, please give it a thumbs up!
Thanks @JodieM

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Newbie

Replies 1

hi @macfanboy ,

What are we mentioning in the amendment. We are saying we going to carry forward. So how do report the losses and not applying?

After reading few posts here, I understood that, we can either report it or apply it against the gain. Could you please tell me how to report it I mean under which section and hot to apply it under which section.

Your help is appreciated.

 

Thanks,

Sure.

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Community Support

Replies 0

Hi @surereddy

 

As per the post for JodieM if you identify as an investor you will need to recalculate or input the capital gains or loss label as applicable. See Working out your net capital gain or loss.

 

A tax agent can assist to lodge if you prefer or you can amend yourself in myTax depending if you have gains to offset the loss against in any of the given years otherwise its just a matter of reporting it at the appropriate label(s) and rolling it over from year to year accordingly. There are self help instructions in myTax and our web chat colleagues can assist also once you have worked it out .

 

Thanks for the query.

MarkATO