This tax guide gives you all the information you need to know to avoid fraudulent tax returns regarding crypto and NFT. You should ask the ATO to crack down on your tax return if you have bought or sold cryptocurrencies.
“For the crypto hobbyist, there is a $10,000 ‘Personal Use Asset tax exemption,” Theodorou said. He explained that if a hobbyist purchased under $10,000 worth of crypto that has been used for personal use or purchasing goods, then no tax is payable.
The crypto you purchased to start should not have been a business, investment, or income-making program. You are not eligible. You should include a token you give via airdrop in your tax return.
Airdrops are marketing tools that use ids and cryptography to spread them amongst people. Many people think crypto is tax deductible, but let me tell you the truth. It may not be if you have not achieved any financial gains in recent years.
You need to use fiat to swap it for another crypto. The ATO website says it’s the most crucial kind. It sets out tax laws and functions.