So in Australia it is time to get onto doing tax -.- paperwork which just got a bit more complex for me and I guess many others. I am speaking to someone from the Australian Taxation Office (ATO) tomorrow to clarify a few things. Does anyone have experience with this or can further guide me and other newbies through the process?
To my understanding if the crypto-currency or the value of your holdings is less than 10 000AUD then we don't need to worry... " any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less"
Given the fact it is a currency makes it a little more complex due to mining. At this point I'm avoiding the paperwork if I can but the "in the business of mining" part has me somewhat perplexed. Is it saying that we can't have a bitcoin hobby? "In the business of" can be a little indecisive, because most miners are set and forget as is cloud mining. Therefore time is not being put in on an ongoing basis and for some people while there may be a capital gain potential in the long term but running an S3 at the moment is causing significant negative values. But due to this "in the business of" taken to mean does it then I stand to record significant losses due to the expenses in mining (hardware plus electricity)
Hopefully tomorrow's call with the ATO will shed some light on the subject but fingers crossed I don't need to worry about it for now :) I will update if anything specific comes of tomorrow's call.
Quotes extracted from:
https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---specifically-bitcoin/
Please note the above is not financial advice and you should make your own decisions or contact professionals. I am not liable for any conclusions or decisions made from reading this post or links.