Shares, Managed Funds & Cryptocurrencies

 
 
 
Get expert advice on investing in shares, managed funds and cryptocurrencies from Gary Wilkins & Associates in Cairns. We’ve been helping our clients manage their investment portfolios since 1996.

When it comes to share trading, crypto trading and managed fund investments, It’s vital that you record all relevant incomes and make sure franking credits have been claimed for shares. All managed funds also need to be accounted for appropriately.
 
We offer several services to help you maximise your tax benefits, these include:
 
 
  • Calculating capital gains and losses from investments
  • Assisting with 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

 
The income you receive from investing in shares is taxed at the marginal rate. A franking or imputation credit is attached to fully franked dividends that represent the amount of tax already paid by the company. If the company has already paid tax you are entitled to receive a credit for that. If your marginal 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 make a profit from selling an investment for more than you paid for it. It’s taxed at a lower rate than personal income, but some exceptions do exist.
 
 
 
Charts — Accounting Service in Woree, QLD
 
 
 
 

Managed Funds

 
Many managed funds won’t pay tax because the income is distributed to the investors. That leaves you responsible to pay the tax on any income. Some of the funds defer the income until you sell the asset. This makes it possible to receive a distribution and have some of it tax-deferred. This reduces your cost base and you only pay taxes once you sell the asset.
 
 
 

Cryptocurrency Taxes

 
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.

On a personal level, your activities get taxed as an investment and are considered a personal gain or loss, subject to capital gains taxes. If you buy, sell or trade cryptocurrency for yourself personally, you must record your profits and losses. Investing in managed funds and trading shares and crypto can be a confusing area, our expert team can clear the overwhelm for you to help you get the best outcome from your investments.

At Gary Wilkins & Associates, we keep up with all the latest guidelines and rules regarding tax and investing so we can steer you through the process, ensuring you are reporting on your buying, selling and investing correctly.

Book an appointment with our specialists today.