4 August 201801:56 PM - edited 4 August 201801:57 PM
The issue we've got is that the ATO wants us to understand how complicated the thing is that we're doing (by using cryptocurrency exchanges), when the whole of crypto-space is setup so simple minded users can do complicated things, without experiencing any complication or sense of it. So the ATO expect us to know all of these terms usually applied to business people.
Trading only becomes complicated when applying Tax to it, before that it is relatively simple... because you know who you are.. you're a base-end-level user, flipping coins around to ones you think might end up being more valuable. But with being taxed, the classification seems unclear and there are no examples of how a hobby trader, an investor, or a business trader must differ the way in which they do their accounting for the simple act of trading cryptocurrency to another cryptocurrency. for example, or what ever differs them, needs to be clear.
Very simple guidelines and core differences need to be animated so all I need to do is choose 'option A B or C'... and then be told what applies to me. This isn't that complicated, needing to contact the ATO ... seems a reach for something so simple.
Do you actively use cryptocurrency exchanges? Yes? No? Do you hold your cryptocurrency for more than 12months? Yes? No? Do you mine cryptocurrency of a value threshold set by the ATO per year? Yes? No?
What we need from you is. . .
How does an investor, differ from a trader, differ from a business?
In my mind, I am a user of a businesses program, their exchange... how am I running a business within a business? In a cryptocurrency exchange, everyone is selling/market making to everyone else... and price is determined by demand and supply (across all exchanges, if everyone has access to trade on all of them equally, which they do). I am as much a customer as I am a seller. SO what exactly/how does the ATO see me (an average cryptocurrency exchange user) and treat me?
Do I use CGT method by gathering the disposal price as my new costbase, to declare everything. Or do I use a 'trading stock method' where I evaluate all my trading stock at the end of financial year?
What is an investor vs. a trader. vs. a hobbyist. Are these the only classifications I need to think about? And what obligaitons apply to each in simple terms?