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Bitcoin and Uber

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Hi i have 2 questions.. I have applied for tax return 15 days back and I got my tax return. After lodging my tax return I realised that I missed to include the crypto currency and I also want to know its treatment so in total I spent $2000 as of 30 June the value was $700 but I haven’t sold them on that date should I show as investment loss based on value or I will only show it once I sell it next year?

My second question is I did Uber for few days between the FY period and earned $199 while my total expenses for the same period as I spend on registration and documentation were $225. I have missed this also in my tax return?

What will be the best way to go now for both these. Your advise will be greatly appreciated as I am getting concerned and don’t want to misrepresent my income and expenses for taxable purposes.

Thanks in advance
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Devotee

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Hi @Ananishah

 

Thanks for your questions! Based on the information you've provided, you purchased cryptocurrency as investment opportunities. As an investor, your cryptocurrency is considered to be a capital asset, which means that capital gains tax (CGT) may apply when you dispose of your coins.

 

The term 'dispose' is pretty broad - it can mean selling your cryptocurrency for cash, trading one coin for a different kind of coin and even giving your cryptocurrency away to someone as a gift. You can find the full list of CGT events over on our website.

 

If you haven't disposed of any of your cryptocurrency, you won't need to include this information in your return. You'll need to keep detailed records of all your crypto-transactions, though, for when you do sell/trade/gift in the future. You'll also need to keep your records for up to five years after your last capital gains tax transaction. 

 

If you have traded one coin for another, this is considered to be a disposal, and you'll need to calculate the capital gains tax on these transactions. We have more information, including a sample calculation, on how to work out your capital gains over on Capital Gains Tax on Crypto currency

 

You've also mentioned that you drove for Uber for a period of time in the last financial year. If you were an Uber driver (and not an UberEats driver), then we encourage you to check out our guide for ride-sourcing drivers to learn more about your tax and reporting requirements. 

 

If you've forgotten to include information on your tax return, you can ask us to add or make changes by requesting an amendment. You can even lodge your amendment request using our online services in myGov. You'll need to report any income you might have missed the first time around and make sure to claim any deductions you're entitled to. If you're not sure how to complete your amendment, you may choose to hire the services of a registered tax professional - find one in your area by searching the Tax Practitioners Board register

If you received a refund on your original return and need to report additional income, you may receive a tax bill if enough tax hasn't been withheld to cover the additional amount. We can often work with you if you do have additional amounts to pay - check out our help with paying section for more information.

 

Thanks!

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Devotee

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They probably won't chase people as hard that made losses, but I think on the news they were going on about 'self employed' uber-ish people and crypto chucked into the same boat. 

Anyway... your query about cryptocurrency. If you have never exchanged the cryptocurrency you originally bought for another cryptocurrency or australian dollars, then they will never be taxed. Only when you dispose of them do they have a value which can then be determined a capital gain or loss against your cost base (original spending price). 

If you mean you never sold them or until this financial year, then you don't need to add them to last year as there would be nothing to say for that year. If you mean you have swapped one cryptocurrency for another last year, like buying bitcoin to then send to an exchange and buy and hold other alt-coins... then the trade from BTC to ALT-coin will be a CGT event (Capital Gains Tax), and should keep a record of this and report any capital gains as income (even if you havn't sold them out to AUD to claim that theoretical gain).

Highlighted

Most helpful response

ATO Certified Response

Devotee

Replies 0

Hi @Ananishah

 

Thanks for your questions! Based on the information you've provided, you purchased cryptocurrency as investment opportunities. As an investor, your cryptocurrency is considered to be a capital asset, which means that capital gains tax (CGT) may apply when you dispose of your coins.

 

The term 'dispose' is pretty broad - it can mean selling your cryptocurrency for cash, trading one coin for a different kind of coin and even giving your cryptocurrency away to someone as a gift. You can find the full list of CGT events over on our website.

 

If you haven't disposed of any of your cryptocurrency, you won't need to include this information in your return. You'll need to keep detailed records of all your crypto-transactions, though, for when you do sell/trade/gift in the future. You'll also need to keep your records for up to five years after your last capital gains tax transaction. 

 

If you have traded one coin for another, this is considered to be a disposal, and you'll need to calculate the capital gains tax on these transactions. We have more information, including a sample calculation, on how to work out your capital gains over on Capital Gains Tax on Crypto currency

 

You've also mentioned that you drove for Uber for a period of time in the last financial year. If you were an Uber driver (and not an UberEats driver), then we encourage you to check out our guide for ride-sourcing drivers to learn more about your tax and reporting requirements. 

 

If you've forgotten to include information on your tax return, you can ask us to add or make changes by requesting an amendment. You can even lodge your amendment request using our online services in myGov. You'll need to report any income you might have missed the first time around and make sure to claim any deductions you're entitled to. If you're not sure how to complete your amendment, you may choose to hire the services of a registered tax professional - find one in your area by searching the Tax Practitioners Board register

If you received a refund on your original return and need to report additional income, you may receive a tax bill if enough tax hasn't been withheld to cover the additional amount. We can often work with you if you do have additional amounts to pay - check out our help with paying section for more information.

 

Thanks!