When is crypto taxable?
Hello
I have been investing in crypto for 1 year.
Next year I would have to declare my profits in my tax return, and I am currently securing all transactions from the respective stock exchanges.
But how much exactly do I have to enter there?
small example of my situation
For example, I invested €5,000 at the beginning of the year.
swapped back and forth depending on the increase in the individual coins.
At the peak (e.g. summer) I had a profit of 5000€ (but this was NOT exchanged into € and not paid out to my account)
Now at the end of the year when the crypto market has fallen, my value of cryptos is back at 5000€ (starting value)
Do I have to declare the €5000 (summer) winnings now?
Or nothing at all since there is no profit left and I have not made any withdrawals from my account?
(1 votes)
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I’m just investor myself, so Laie, but I think you don’t have to do anything. For profits and losses are counterbalanced in the capital income tax. Because you didn’t make a profit, there’s nothing to tax. At least according to my logic.
The following link may also help: https://www.zinsen-becalc.de/ablagungssteuer/lossverCalculation.php
cryptocurrencies have nothing to do with capital income tax.
Yes, here in Austria it is. Whether it is in Germany, I do not know: “Ready from the 28th. February 2021 bought crypto-Assets are treated like classic shares and funds, sold profits are treated independently of the retention period with the current capital income tax (KESt) set of 27.5 percent taxed.”
Okay, thanks for your answer. I will now also just wait for the one-year period of the individual Coins and let this be changed back and forth to get the whole crap out of the way. After a year, I can do what I want.
Yes, for a year of holding, the speculation tax is also eliminated.
Okay, that’s different. But what I just read, he can still counter his profits from the crypto sales with the losses. So if he comes back to his start capital at the end, he doesn’t need to be taxed.
In Germany, cryptocurrencies are speculative objects, e.g. oldtimers or paintings. A completely different tax is carried out than for financial producers such as shares.
Every exchange counts like a sale. If the exchanged currency was more value than it was bought at the time, this is a profit that must be specified.
Booking gains are irrelevant.
hm unfortunately, I did not deal with the tax side in front of the whole.
that would be a lot of effort from, for example, 200 transactions and to send back and forth on stock exchanges to calculate each individual profit. sometimes it was also a swap with loss but sometimes one with e.g. 500€ profit that was then exchanged in another coin.
This is your duty to have your bookkeeping under control. Ultimately, the chance that a FA will learn about it is quite zero. If at the end no big wins have flown to your “normal” accounts, then you can consider the issue in the tax return.