Australian Tax Office prioritizes cryptocurrency capital gains rules

The Australian Taxation Office has warned cryptocurrency investors to declare capital gains or losses on their digital asset (including non-fungible tokens) trades, according to a release May 15. “Crypto is a popular type of asset, and we expect to see more capital gains or capital losses reported in tax returns this year,” said ATO Assistant Commissioner Tim Loh. “Through our data collection processes, we know that many Aussies are buying, selling or exchanging digital coins and assets, so it’s important people understand what this means for their tax obligations,” Loh added. Amid a cyclical downturn in cryptos, Australians won't be able to offset their crypto losses against their salary and wages, Loh cautioned. The ATO's guideline also highlighted three other areas of focus, including record keeping, work-related expenses, rental property income and deductions. Meanwhile, bitcoin (BTC-USD -1.8%), the world's largest digital token by market cap, is slipping to $29.9K in afternoon trading.