Crypto currency tax implications

For those who have ventured into the exciting world of crypto currency, it has no doubt been a roller coaster of emotions watching the price go up and down in recent times.  

Whilst many investors have enjoyed dabbling, or even getting more seriously involved in this new investment opportunity, the calculation of the tax liabilities can be quite confusing and time consuming.

Fortunately, we are starting to see some new software become available in the marketplace to assist crypto players in making this process easier.   Crypto Tax Calculators can save you and your accountant significant time and therefore reduce the likelihood of unexpected bills.   

How do Crypto Tax Calculators work?

You simply need to import your transaction history, categorise your transactions and calculate realised profit and income.  Some software even allows you to sync your digital wallet and the tax calculation is done automatically.   You can then generate the appropriate reports to send to your accountant and keep detailed records handy for audit purposes.

The good news is, if you haven’t done your crypto tax for previous years, you can use the same software to catch up as part of your first-year subscription fee.

We strongly recommend you take the time to research and understand the best crypto tax calculating software for you.  Many of the software providers have different annual subscription price points for differing levels of investment.

Some examples of calculators that are trending now are:

• Crypto Tax Calculator
• Koinly
• BearTax
• CryptoTrader.Tax 

You should definitely continue to discuss and review tax scenarios with your Forsyths accountant.  But, by investing in and using a Crypto Tax Calculator you will avoid the need for your Forsyths Accountant to manually calculate your CGT – saving time and money.