Cryptocurrency – What to do at 30 June

If you’ve traded crypto then this is what you need to do at 30 June each year, in four easy steps, to make life easier come tax return preparation:

Note, if you haven’t done this at 30 June, then you will need to gather these records to today’s date instead.

Step 1

Keep a record of each crypto you own at the end of 30 June and how many.

For example,
Bitcoin BTC 0.45642
Ether ETH 2.351
Ripple XRP 6,458.452
Litecoin LTC 20.5434

Best practice is to keep this record in a spreadsheet with a column for the crypto ticker (e.g. BTC) and a column for the quantity. It can also be helpful to include a column for the location of the crypto (i.e. wallet/exchange) and the quantity at each location. A template is available here.

If you have NFTs, the record should include the description, token ID, location (i.e. wallet/exchange), relevant blockchain (e.g. Ethereum/Solana/Binance Smart Chain) and acquisition transaction hash.

And…. it’s also a great idea to take screenshots of balances held at exchanges and wallets for substantiation. These screenshots are especially important for Self-Managed Superannuation Funds (SMSF).

Step 2

Keep a list of each exchange and wallet you have used throughout the year.

For each wallet, the record should include all the relevant blockchains (e.g. Ethereum, Binance Smart Chain, Polygon).

Also, for each exchange/wallet, list the types of transactions which have occurred (e.g. spot trading, futures trading, margin trading, earn/interest accounts, staking, liquidity pools, farming, mining, borrowings, gaming, etc).

A template is available here.

Step 3

Part A

Download your transaction history for the period 1 July to 30 June from your exchanges and wallets.

These are usually available to download as CSV files using an export history feature.

If you traded crypto before 1 July and haven’t previously kept a copy of those transactions, then you also need to download prior year data too.

Part B

Download your deposit and withdrawal history from exchanges and wallets.

Again, these are usually CSV files and should include crypto and fiat (AUD, USD, EURO) amounts.

Part C

Setup read-only APIs for each exchange. Keep a record of the exchange name, API Key and Secret.

If you would like specific instructions for how to get the CSVs/APIs, then please let us know.

Step 4

Send this information to us, together with your other tax information such as tax deductible expenses and other income.

We will then review the information and let you know what is needed to get your tax return done. This will include a quote for the service.

When you have accepted our engagement agreement, your tax return will then be prepared and lodged by Australia’s GO-TO cryptocurrency specialists – Munro’s.

You can send the information by email at ExperienceSuccess@munros.com.au or request a secure client portal account to upload via our website.