Are you looking to pay taxes on your CoinSpot transactions?
In this guide, we’ll discuss everything you need to know to accurately lodge your tax return. We’ll break down the basics of how cryptocurrency is taxed and walk through a simple step-by-step process to make sure you’re reporting all of your CoinSpot transactions to the ATO.
CoinSpot is an Australian crypto exchange that was founded in 2013 by Russell Wilson. With over 1 million users, CoinSpot is one of the most popular exchanges in Australia and has established a strong reputation for safety and ease of use.
CoinSpot supports more cryptocurrencies than any other Australian exchange. With their CoinSpot Bundles product, users can purchase multiple tokens in one transaction without needing to pay multiple fees. Another popular feature is CoinSpot Markets, which allows CoinSpot members to trade with each other for only 0.1% per trade.
The ATO treats cryptocurrency as property, rather than currency. That means crypto is subject to both capital gains and income tax.
Capital gains events: Every time you dispose of crypto, this triggers a capital gain or loss that needs to be reported. This includes transactions where you sell, trade crypto-to-crypto, send it as a gift, or use it to pay for goods and services.
To minimize your capital gains tax, be sure to keep track of the holding period of your assets. In Australia, there is a 50% discount for holding your crypto for 12 months or longer.
Income events: If you earned crypto from staking or mining, it will be considered ordinary income and taxed based on its fair market value at the time you received it.
Currently, you cannot stake or mine crypto on the CoinSpot platform. However, if you transferred crypto income earnings into CoinSpot, you will need to account for those transactions.
For more information, check out our complete guide to Australian crypto taxes.
In 2019, the ATO announced that it would be collecting records from all Designated Service Providers of cryptocurrency, although the specific exchanges were not listed by name. However, as one of the oldest and most popular licensed exchanges in Australia, it’s very likely that CoinSpot is considered a DSP by the ATO.
Because of the nature of cryptocurrency, it’s difficult for any exchange to give its users a complete tax report.
After all, many investors use multiple exchanges and wallets. However, CoinSpot only has visibility to transactions that take place on the CoinSpot platform.
If an investor buys Bitcoin on Binance then transfers it to CoinSpot, CoinSpot will not know the original cost basis for acquiring the tokens. In this case, the company won’t be able to provide a complete record of capital gains and capital losses.
Luckily, CoinSpot partners with CryptoTrader.Tax, which is designed to make it easy to calculate capital gains and income across multiple exchanges and wallets.
With CryptoTrader.Tax, reporting your CoinSpot transactions on your taxes takes minutes.
Log in to your CoinSpot account.
Click on My Account drop-down and select Order History.
Click on the Download CSV button.
Navigate to the CoinSpot tab inside the CryptoTrader.Tax Import page and upload your CSV file.
And that’s it! Once you’ve integrated all of the other exchanges and wallets you are using, you will be able to lodge your crypto taxes with the click of a button. Alternatively, you can send your transaction data to your accountant.
Looking to report your CoinSpot transactions to the ATO? CryptoTrader.Tax can help. More than 100,000 investors across the world use the platform to file their crypto taxes in minutes. Get started with a free preview report today - there’s no need to add your credit card data until you’re sure you have the correct transaction information.