The Australian Taxation Office (ATO) has issued a warning to cryptocurrency investors, reminding them that capital gains and losses must be reported every time a digital asset, which includes non-fungible tokens (NFTs), is sold.
- In light of the recent downturn in the crypto market, ATO Deputy Commissioner Tim Loh said that "crypto losses cannot be offset against an investor's salary or wages."
- "Crypto is a popular investment vehicle and we expect to see more capital gains or capital losses reported on tax returns this year," Loh said.
- "Through our data collection processes, we know that many Australians are buying, selling or exchanging digital coins and assets, so it is important that people understand what this means for their tax obligations," Loh added.
- Australian citizens do not have to pay taxes when buying cryptocurrencies as long as the purchase is made with fiat currencies.
- Investors can receive a 50 percent reduction in capital gains tax if they hold an asset for a year or more after purchase.