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Sole trader receiving a portion of day rate as crypto

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Newbie

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I'm a sole trader who receives $900 per day excluding GST and an additional $100 worth of cryptocurrency (amount depending on conversion rate). There was a similar question already asked here: https://community.ato.gov.au/t5/Cryptocurrency/Salary-in-Cryptocurrencies/td-p/11756 however I'm not a salaried employee.

How do I do the taxes on the $100 worth of cyptocurrency?

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Taxicorn

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If you receive cryptocurrency for goods or services you provide as part of your business, you need to include the value of the cryptocurrency in Australian dollars as part of your ordinary income. This is the same process as receiving any other non-cash consideration under a barter transaction.

One way of determining the value in Australian dollars is the fair market value which can be obtained from a reputable cryptocurrency exchange.

 

https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-currencies-in-australia---specifically-bi...

1 REPLY 1

Most helpful response

Taxicorn

Replies 0

If you receive cryptocurrency for goods or services you provide as part of your business, you need to include the value of the cryptocurrency in Australian dollars as part of your ordinary income. This is the same process as receiving any other non-cash consideration under a barter transaction.

One way of determining the value in Australian dollars is the fair market value which can be obtained from a reputable cryptocurrency exchange.

 

https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-currencies-in-australia---specifically-bi...