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Hello, I live in Germany and I started to open a wallet (Bit Panda). On January I bought some Crypto and with some crypto, some token...How will it work the tax declaration next year?
What must be done? Considering that the only tracking is the in/out from my bank to bitpanda, and then all the exchange between bitpanda and other currencies.
I have read that if thre is no trading for 1 year the investment will be not subjected to any taxation but let imagine this operation:
1 January 2018:
I buy 1 BTC (paid 100 euro)
I Buy 1 ethereum (Paid 100 euro)-> I send it to xxcoin.ico and I buy 100 xxToken. Some portion of ETH was used for the transaction cost
total invested in fiat -> 200
2nd of January 2019:
I sell the BTC which has lost value to 50 euro. -> -50 euro
I sell 100 xx Tocken for 10 ETH (token increased the value) -> ETH has reached 150 euro so i sell all the ETH and I get 1500 euro (Minus some cost for the transaction).
Total return in fiat 1550
here the question:
Do I need any declaration considering that I overtook 1 year? If yes what I need to present?
Is it considered a new trading the operation of exchanging the Token in ETH? Will this reset the fiscal 1-year counter??
I appreciate all the suggestion and comments. I am in Bayern, Vielen Dank!
What must be done? Considering that the only tracking is the in/out from my bank to bitpanda, and then all the exchange between bitpanda and other currencies.
I have read that if thre is no trading for 1 year the investment will be not subjected to any taxation but let imagine this operation:
1 January 2018:
I buy 1 BTC (paid 100 euro)
I Buy 1 ethereum (Paid 100 euro)-> I send it to xxcoin.ico and I buy 100 xxToken. Some portion of ETH was used for the transaction cost
total invested in fiat -> 200
2nd of January 2019:
I sell the BTC which has lost value to 50 euro. -> -50 euro
I sell 100 xx Tocken for 10 ETH (token increased the value) -> ETH has reached 150 euro so i sell all the ETH and I get 1500 euro (Minus some cost for the transaction).
Total return in fiat 1550
here the question:
Do I need any declaration considering that I overtook 1 year? If yes what I need to present?
Is it considered a new trading the operation of exchanging the Token in ETH? Will this reset the fiscal 1-year counter??
I appreciate all the suggestion and comments. I am in Bayern, Vielen Dank!
Every time you exchange one coin or token for another it is considered a trade that resets the 1-year counter.
So, in 2018 you buy ETH with Euro. That's the first trade. Then you buy token with these ETH. That's a second trade and if your ETH had a higher Euro value the moment you bought the tokens than they had when you bought them for Euro, you'll have to pay taxes on the difference. If your total winnings for the year are below 600 Euro, you go tax free.
In your example however, we can assume that you immediately bought the tokens after getting the ETH so that the price of ETH was still the same. In this case, you don't have to pay taxes on that trade.
In 2019 it is the same. You only go tax free if the ETH you get don't increase in value from the moment you get them until you sell them for Euro. All the other trades you mentioned are free because more than a year has passed.
So in My example I will pay the taxes only on the difference between 1 ethereum (Paid 100 euro) in 2018 - 10 ethereum (Value in 2019 150euro) -> 1400 euro income to be taxed right
What do i have to present for this??
-> In your example however, we can assume that you immediately bought the tokens after getting the ETH so that the price of ETH was still the same. In this case, you don't have to pay taxes on that trade
Yes but phisically I needed to move Ethereum from one exchange to another....and the operation took 1 hour more or less (to send and buy the token)...My case is like the example:
I bought ETH and BTC in January, and around some days I bought Token. Now I want to save these tokes up to the beginning of the next year, and once the moment to sell I will need to convert them in BTC or ETH and then Euro...Will I pay the taxesß If yes, do I have to do the declaration? If yes, what do I need to attach to the declaration???
Thank you!
