Working out your cryptocurrency tax can be confusing as there’s a lot to consider.

Are you an Investor or a trader?

The first step is to determine whether you're a crypto investor or are carrying on a crypto trading business. It’s important to get this step right as it determines whether your activities are taxed under CGT rules or income tax rules.

Most people are investors as there’s an intention to earn income from it. This means your activities will be subject to capital gains tax (CGT).

If you’re mining, or buying and selling crypto in an organised, business-like manner, you’re likely running a business.

It’s rare that people use crypto purely as a personal use asset. If you do apply the personal use asset exemption, you still need to report any gains or losses when a CGT event occurs.

Am I an investor?

If you’re buying and selling crypto with the intention of keeping it to make a profit, you’re likely considered to be an investor. This means your crypto activities will be subject to CGT.

Am I a trader running a business?

If you’re mining and selling crypto, or buying and selling crypto in an organised, business-like manner, you’re likely running a business. This means that you’ll need to treat your earnings as business income, which is subject to income tax.Get in touch with us and we can step you through it.

Find out more information on how to calculate your taxes here.

Still confused? Email us for assistance.