Cryptocurrencies and/or digital assets have emerged as a new investment class for a new generation of investors. Albeit volatile, the attraction includes enticing returns (and losses) from blockchain networks, digital tokens, stable coins, NFT’s, and all things DeFi. (And that’s just the beginning.)
From a tax perspective, cryptocurrency and its tax obligations can be overwhelming. Numerous transactions can be made very quickly, and in a short space of time can turn into a sizeable amount of taxable type activity - that must be recorded. So whether you HODL, swing trade, day trade or just dabble, the obligations are all the same. And as the investment class continues to grow, so does the scrutiny from the ATO, no matter what level of investor you are.
If you’re considering the crypto investment space or are already an active investor, then be sure to consider the advantages of using a professional to help maximise any crypto position. Do you still have questions? Contact an ITP Consultant today.