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Hello guys! Excuse my English but my German is quite basic. I need some information and I hope that you can help me! I've tried Google translate but it was not very helpful and in my experience automatic translations for taxes information is very, very dangerous.
I am living in Germany and I am in tax group III. I am currently employed and paying taxes. It's quite confusing and finding a FA person to speak good English and able to explain this stuff is quite the adventure.
My questions are:
1. I also put around 500 EUR in Kraken and started playing with LTC/EUR pair. My question is: does it matter if I trade EUR->LTC & LTC->EUR or BTC->LTC & LTC->BTC for the tax returns? I think that I understood that all sales of the originally bought coins are eligible for the taxes. Does it matter if I trade between coins or just trade one coin with EUR and vice versa?
2. Do i have to mandatory fill a tax return (TAXBracket III) for each year I am working in Germany and what happens if I didn't do it for the past 2-3 years? Is it possible to do it now with Steuerhilferin/Steuerberater? Even if there are no changes in my status?
3. What if my profit is under 100 EUR? Is that taxable too?
Thank you in advance guys! I really appreciate the information and the help you are providing. I also signed up in the cointracking website under one of you.
I am living in Germany and I am in tax group III. I am currently employed and paying taxes. It's quite confusing and finding a FA person to speak good English and able to explain this stuff is quite the adventure.
My questions are:
1. I also put around 500 EUR in Kraken and started playing with LTC/EUR pair. My question is: does it matter if I trade EUR->LTC & LTC->EUR or BTC->LTC & LTC->BTC for the tax returns? I think that I understood that all sales of the originally bought coins are eligible for the taxes. Does it matter if I trade between coins or just trade one coin with EUR and vice versa?
2. Do i have to mandatory fill a tax return (TAXBracket III) for each year I am working in Germany and what happens if I didn't do it for the past 2-3 years? Is it possible to do it now with Steuerhilferin/Steuerberater? Even if there are no changes in my status?
3. What if my profit is under 100 EUR? Is that taxable too?
Thank you in advance guys! I really appreciate the information and the help you are providing. I also signed up in the cointracking website under one of you.
1) If you buy a coin, no matter which one, and subsequently sell it for Fiat or a different coin, this is a taxable event. The big exception is if you hold the coins for more than a year. In this case, selling them will be free of taxes.
In case of coins traded for different coins, e.g. LTC --> BTC, you have to determine the Euro value of the BTC at the time of purchase.
2)Depends. If you have been working since you came here it would be mandatory since you had taxable income. On the other hand, if you're American, I think there are some taxation agreements in place, so I'll pass on this question. Asking a Steuerberater is always a good idea though. Nobody here can give you "definite" answers.
3) Nope, that would be free. Up to 600€/year income from selling coins is free.
Oh boy! Thanx for the reply. Suddenly I am not so excited anymore about trading
between the fees and taxes... investing and HODLING seems the best action here.One more thing:
1. When do I have to report the profits to FA? The next year of the actual transactions (so profit from 2017 in the tax return filed in 2018) or when I decide to withdraw Fiat to my bank acc? The thing is... what if I pay taxes on 5000 EUR profit and I never see the money in my bank acc for some reason (exchanges get hacked etc.)?
