What increases a cryptocurrency value
Tax trap cryptocurrencies
Private investors with stocks, fund units and other regulated investment products in their custody account rarely come into contact with the tax office - the banks pay the withholding tax for them and, if necessary, offset profits against losses.
It is completely different with investments in cryptocurrencies. While these were previously a niche phenomenon, the steep rise in the price of Bitcoin, Ether, Ripple and Co. has also encouraged other investors to buy. Some retailers even advertise that you can pay with virtual "money" from them.
But: The money holdings in virtual currencies are legally treated neither as a (foreign) currency nor as an investment, but as other economic goods. However, profits and losses from cryptocurrencies can still be relevant for the tax return.
If, for example, Bitcoins are sold at a profit within the one-year period, these are speculative profits that are subject to the regular income tax rate. From the point of view of the tax office, it makes no difference whether this capital gain arises through exchange, when shopping or on the stock exchange.
Anyone who has invested in a virtual currency should therefore document the acquisition process. Because in order to determine the taxable amount, you need the acquisition costs. To simplify matters, the “first-in-first-out” method (FIFO) can be used here: It is then assumed that the coins acquired first are also sold first.
The good news: Profits can be offset against losses from other speculative transactions in the same year. The costs of the business reduce the profit or increase the loss. And if there is still a tax profit, an exemption limit of 600 euros applies.
- What is a database model
- Girls like to send nudes
- Which countries are currently in a recession?
- What are your passions, interests and hobbies
- How do I counterfeit a fingerprint scanner
- Who owns the copyrights of Harry Potter
- Is Malaysia a forgotten country
- Why does X give the number 10
- Flat people are insecure
- What does an ordinary Filipino look like
- How can I learn about spacetime
- Which musicians can be called music therapists
- How do you stop witchcraft
- Saturdays are bank holidays in the UK
- What is the limit of probability
- Can someone hypnotize someone on social media
- How do I thank someone
- Can humans survive on Mars?
- What makes a website in the first place
- How are DNA tests carried out
- Rules are made to be broken
- How many carbohydrates should I eat each day?
- Why do some people think faster
- Why are the Gurkhas so feared