Crypto Assets
Miriam Hewson
Director at BOSSIT.NZ | I help owners of small businesses master their numbers, elevate their goals and execute their strategies.
You’ve seen and heard the hype around crypto assets, and you’ve decided that now is the time to invest. But how to they actually work and how do they impact on your tax? Crypto assets are essentially digital currency that allow you to securely pay for things and transfer money. Think of them as ‘tokens’ that can be traded for other goods and services.
However, even though crypto assets have no physical form like traditional money, they still have an impact on your taxation and business. Because of this, it’s important that you keep an accurate record of your crypto asset transactions. This includes:
- The type of crypto asset
- Date of transaction
- Type of transaction (example, received or disposed of)
- Number of units
- Value of the transaction in New Zealand dollars
- Total units of each crypto asset held in the beginning and end of year (this makes your end of year financials much easier)
- Exchange records and bank statements
- Wallet addresses (these act as your ‘email addresses’ for your crypto asset)
You’ll need to keep a record of these for at least 7 years, even if you no longer have any crypto currency. It’s also important that you regularly download your crypto asset exchanges as they may expire from records before it’s time for you to do your tax returns.
Here at Futureproof Concepts, we’ve decided to invest in Qoin ourselves so that we have firsthand experience in what other businesses are experiencing. We’re also accepting Qoin as a payment option going forward. So, if you have any questions or queries regarding crypto assets and the impact on your tax, please let us know.