Cointree Tax Guide
We are proud to announce a partnership with Cointree. As one of Australia's premier exchanges, we now make it really easy for users to be compliant with ATO tax reporting guidelines. You can read through the below guide to better understand how crypto taxes work on Cointree, and learn how to easily keep track of your taxes by using CryptoTaxCalculator.
Investing in cryptocurrency incurs different tax liabilities and these might be in the form of Capital Gains Tax (CGT) or Income Tax. However, the type of tax payable and the quantity will depend on the specific features of the transaction such as the type of transaction made, as well as the entity making the transaction (i.e. business vs. individual).
Capital Gains Tax refers to the tax paid on a capital gain made from the sale of a capital asset. Specifically, capital gain (or loss) = capital proceeds (price that the capital asset was disposed of for) – cost base (price it was purchased for).
Therefore, different transactions involving the disposal of cryptocurrency may give rise to a ‘Capital Gains Tax Event’ and result in some CGT payable to the ATO. Once taxable quantity is determined, the tax payable will be calculated according to your individual income tax bracket.
You can read more about how crypto taxes are calculated in our Crypto Tax Guide.
Whether you are a business, investor or personal user of cryptocurrency, remember that crypto gains or losses are taxed. Therefore, to accurately calculate your tax liability – it is important to maintain records of all your cryptocurrency exchanges.
Records may be requested at the discretion of the ATO and generally need to be held for a period of 5 years after the cryptocurrency exchange.
As stated on the ATO wesbite as of 9th July 2020
You need to keep the following records in relation to your cryptocurrency transactions:
- the date of the transactions
- the value of the cryptocurrency in Australian dollars at the time of the transaction (which can be taken from a reputable online exchange)
- what the transaction was for and who the other party was (even if it’s just their cryptocurrency address).
The sorts of records you should keep include:
- receipts of purchase or transfer of cryptocurrency
- exchange records
- records of agent, accountant and legal costs
- digital wallet records and keys
- software costs related to managing your tax affairs
Keeping good records will make it easier to calculate and meet your tax obligations, and if you are in business, they will assist you to manage your cash flow and see how your business is doing.
You can use an accountant or third-party software to help meet your record-keeping obligations and working out your tax.
- Login to Cointree
- Navigate to Wallet > Transactions
- Click on 'Export' button
- Click 'Export Orders' to download CSV before uploading to CryptoTaxCalculator
- Sign up to CryptoTaxCalculator
- In the dropdown menu search for CoinJar
- Click the browse button and select the csv file downloaded from Coinjar
- Click the upload button
- You can also append the 'Deposits and Withdrawals' CSV (optional)
- Navigate to the review transactions tab and verify you can see all your crypto transactions
- Navigate to the generate report tab and select the financial year you want the report for.
- Download the report and send to your accountant.
All content in this article is general information only and does not constitute financial, tax or legal advice. It is not intended to be used by anyone for the purpose of financial advice, legal advice, tax advice, tax avoidance, promoting, marketing or recommending to any other party any matter addressed herein. For tax, financial or legal advice please consult your own professional.