Cryptocurrencies in the tax declaration — what’s the best way to do it?

Do your tax declaration with Blockpit
Blockpit — get your personalized tax report
  • Date and time of acquisition of the coin/token
  • Acquisition price at the time of purchase (average market value — e.g. Coinmarketcap — or exact market price of the respective exchange)
  • Exact amount
  • Exchange or platform via which the coin/token was acquired
  • Sale date and time
  • Sale price at the time of sale (average market value — e.g. Coinmarketcap — or exact market value of the respective exchange)
  • Calculation method (In Austria is FIFO standard and compulsory, as long as acquisition time and costs are not completely documented. In Germany, FIFO is obligatory under section 23 (1) no. 2 sentence 3 dEStG.)
  1. The first thing is to get an overview (On which exchanges was traded? When did deposits and withdrawals take place? Which calculation method is used?)
  2. Then there are two options: First, you can manually download all the transaction histories from each exchange and hand them to your tax accountant, who will most likely bill a fair amount of hours to calculate everything correctly. Secondly, there are tools such as Blockpit, which make it possible to import the transactions of major exchanges via API interface to get a report with automated tax calculation. This does not just save time, but due to the optimized preparation in the form of a PDF also reduces costs substantially, in case you take additional tax law support.
  3. Select calculation method (once you have selected a calculation method [FIFO, LIFO, …], then you must keep it, also in the following years). In the first-in-first-out method, the coin of a respective virtual currency that was first bought is also sold first again. With the last-in-first-out method, the last coin purchased is the first to be sold again.
  4. You can offset losses from divestments by cryptocurrencies directly with your profits. Attention: Only with profits from cryptocurrencies! Not with stock profits etc.
  5. In the case of using Blockpit, point 3 and 4 will become obsolete as these steps are handled by the tool.
  6. Whatever variant you decide on, the final step is to file your tax return either in paper form, online or with a tax consultant.

For more information visit us on: https://blockpit.io

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Stay up-to-date with Blockpit when it’s about taxation of your cryptocurrencies. Track your portfolio in real-time and get a personalized tax report.

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Blockpit.io

Blockpit.io

Stay up-to-date with Blockpit when it’s about taxation of your cryptocurrencies. Track your portfolio in real-time and get a personalized tax report.

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