Crypto is a HOT topic, and has seen quite a bit of growth in recent years.
Now that many are on the crypto trend, what does this mean for their taxes?
According to the ATO, you may have to pay capital gains tax or income tax (or both!) on your crypto earnings, depending on whether you’re classified as an investor or a trader.
If you’re ensure which category you fall into, it’s best to consult a tax professional to determine your obligations.
“Investors” typically hold onto their cryptocurrencies for long-term capital gains, which “traders” buy and sell frequently to make short-term profits.
The ATO takes both of these approaches into account when taxing crypto earnings, so you don’t want to get this wrong!