Cryptocurrency warning: Why you could get a nasty shock at tax time
People looking to make big gains on cryptocurrency could get a nasty shock come tax time, as profits from trading in virtual commodities attract the same taxes as those in the real-world.
Thousands of people have begun investing to cash in on the booming markets, but while the gains may be substantial, the government will also take its share of the profits.
Australian Taxation Office assistant commissioner Tim Loh said some people trading in virtual currencies aren’t aware they need to pay up at tax time.
“Cryptocurrency is like an asset, so it is treated like an asset, think of it like shares,” he said.
“That’s what people are missing at the moment and they think it is more like cash.”
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