the Australian Taxation Office (ATO) announced to users that trading a token can have capital tax, just like it has this rule also for the sale of property and shares.
Taxes specified for trading digital tokens, such as non-fungible tokens (NFTs), were marked as one of the zones in which the taxman faces lots of errors.
ATO assistant commissioner Tim Lo said “through our gathered information processes, we are aware of many Aussie’s purchasing, selling or exchanging digital coins and properties so it’s significant for people to understand what this means for their tax obligations.
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At a time of falling cryptocurrencies or Terra’s collapse, Loh also has a suggestion toward those who sell digital assets for less than they originally paid.
“he warned that you can’t compensate your crypto losses by your salary and wages.
Regarding the guidelines of ATOs, recording a net capital loss can represent the payer is close to a reduction on future capital gains, but not on any of their other income.
The ATO also emphasized in its latest release that NFTs are included in the range of assets on which taxpayers must be aware and are subject to capital gains tax if sold for a profit.
The tax organizations declared that their attitude would consider the same general principles as cryptocurrencies.