TAXES ON SHARES, MANAGED FUNDS AND CRYPTO
Get expert tax advice on your shares, managed funds, and cryptocurrency investments, with our tax accountants in Cairns. Gary Wilkins & Associates have been helping our clients manage their investment portfolios since 1996, ensuring they get the professional advice they need.
It is essential to keep track of all income when engaging in share trading, crypto trading, and managed fund investments. Additionally, you must ensure that you claim franking credits for shares. All managed funds also need to be accounted for appropriately.
To help you maximise your tax benefits, we provide the following services:
- Calculating capital gains and losses from investments
- Assisting with the reconstruction of records for buying and selling
- Preparing information on dividends received
- Preparing data on the turnover of shares (using dividends to buy more shares)
- Ensuring every tax deduction allowable is accounted for
Navigating through the investment maze correctly requires professional knowledge and expertise. We can help you make smart financial decisions to maximise your profits.
Taxes on Shares
Dividends and Capital Gains from share investments are taxable forms of income. The income you receive from investing in shares is taxed at the marginal rate.
However, when a company issues a dividend, the company has already paid tax.
A franking or imputation credit is attached to fully franked dividends that represent the amount of tax already paid by the company. If your tax rate is less than that of the company’s tax rate, you will receive a refund for the difference from the Australian Tax Office.
Capital gains taxes are payable when you profit from selling an investment for more than you paid. It’s taxed at a lower rate than personal income, but some exceptions do exist.
If you’re seeking professional advice for getting the most from your tax return, speak to one of our team.
It’s worth noting that in many cases, managed funds do not pay taxes because the income they generate is distributed to investors. As an investor, you are responsible for paying tax on any income you receive from the fund.
In some instances, the funds may choose to defer the income until you sell the asset. This approach allows you to receive a distribution while deferring some tax payments. Additionally, it reduces your cost base and you only have to pay taxes when you sell the asset.
Profit earned from cryptocurrency gets determined in AUD during the exchange from cryptocurrency to fiat currency, goods or services. So, if you buy 1 BTC when it’s worth $2,500 and then spend it when it’s worth $7,500, you must plan for a tax obligation on the $5,000.
It’s the profit or loss component that is subject to tax. This occurs in two different ways, business or personal. From a business standpoint, the cryptocurrency profits become equivalent to business income and face the same income tax rules. This is true with commercial cryptocurrency mining, trading and any crypto-related business.
Your personal activities are taxed similarly to investments. These activities can result in either a gain or loss. The gain or loss is subject to capital gains taxes. If you buy, sell or trade cryptocurrency for yourself personally, you must record your profits and losses.
At Gary Wilkins & Associates, we keep up to date with all the latest guidelines and rules. This enables us to provide accurate guidance on reporting your purchases, sales, and investments.
Book an appointment with our accountants in Cairns today.