SMSFs and cryptocurrencies

Bitcoin and other cryptocurrencies have become increasingly popular over the past few years. As many keen investors jump on board, the ATO is reminding SMSFs to be aware of the tax consequences.

Cryptocurrencies are classified as capital gains tax (CGT) assets, therefore, upon their disposal they may be subject to capital gains tax (CGT).

It is essential to keep records of cryptocurrency transactions within a SMSF such as acquiring and disposing a cryptocurrency.

An investment within a SMSF must:
– Be allowed under the trust deed
– Be in accordance with the investment strategy of the fund
– Comply with SISA and SISR regulatory requirements

When an SMSF invests in a cryptocurrency it must follow the same regulatory requirements that apply to investments in other assets. For example, super laws pertaining valuation, ownership and separation of assets, related party transactions, pension or benefit payments, sole-purpose test and voluntary disclosures apply to all cryptocurrency transactions.

By outsourcing your SMSF administration to the SMSF Compliance Experts, your clients will receive best-in-class SMSF compliance service.

Are you ready to never worry about SMSF administration again?
Contact us today to get more information or to get started!

Marsden Park

SMSF Compliance experts

37 Dromana Rd
Marsden Park
NSW 2765

P. 0419 283 241

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