Anyone who has been traveling with not too shaky hands in recent years could make fabulous profits with Bitcoins - on paper. Who actually realized this, also in real. But as always when the ruble rolls, the state wants to earn.
Those who had the courage to invest in the crypto-currency Bitcoin in good time gave and have a lot to offer. A whopping 12,000 percent increase in share price has been made in the last few years alone. Five years ago, a bitcoin cost just $ 8. Today it is around 14,000. Congratulations.
But even with the virtual investment, the investment is not the hardest endeavor. Often investors find it difficult to part ways at the right time. Given these figures, perhaps the right moment has come at this time to realize profits. For if financial augurs like Warren Buffet right , the fairy tale could soon come to an abrupt end. But, of course, it's hard at this point to give good advice to people who achieve such returns.
Not everyone has to share
Therefore, we prefer to limit ourselves to the actual topic. Namely: How are bitcoin price gains actually treated for tax purposes? In order for the tax to become an issue at all, they must first be realized. Just like investing in stocks too. But unlike securities, the profit of crypto money is not subject to withholding tax, but is considered by the treasury to be a private sale transaction. The same applies to antiques, real estate or even works of art. Such assets are to be declared in the tax declaration as "other income". The profit is then taxed at the respective personal income tax rate. On the other hand, losses can be offset against profits from other sales transactions. Those who mine (Mining),
Logbook for the crypto rally
Anyone buying or selling less than 600 Euro with bitcoins can at least take comfort in the face of the above-mentioned share price developments, since no taxes are payable up to this limit.
However, there is also the opportunity for Bitcoin investors to keep the whole pie at much higher profits. Namely, when there is more than a year between buying and selling the bitcoins. Then the profit protects the so-called speculative tax. It used to be for equities before the government came up with the idea of holding its own, regardless of the duration of the investment.
But it gets a bit more difficult when the bitcoins are bought at different times and at different prices. Then the so-called first-in-first-out method is required. Here it is assumed that those bitcoins earliest acquired are considered to be the ones sold first. If the purchase and sale of certain Bitcoins can clearly be differentiated from other Bitcoin deals, the speculation tax comes into play again. In any case, investors are well advised to accurately document their transactions for the tax office and, as it were, to keep a voluntary logbook for the crypto-rally.
Anyway, Buffet should be right and then you want to leave not only a worthless deposit statement on the interim wealth on paper to his grandchildren, but love a chic villa, should it be possible to think about a partial sale now. To part with at least half of its stock is perhaps a very good strategy. You have what you have. If the story continues, there is still something to earn with 50 percent of the effort.