Bitcoin tax return – does it really exist?
Cryptocurrencies have been classified as a “unit of account” by the Federal Financial Supervisory Authority (BaFin). The result: Bitcoin, Ripple, NEO, EOS & Co. are subject to the same tax requirements as other currencies. And what’s more: The virtual currencies, which have already made one or the other investor a millionaire, are classified as private money. As a result, taxes are levied on Bitcoin in some cases.
The tax authorities see cyber money in the hands of consumers as private economic goods and evaluate trading in Bitcoin, Ethereum, Ripple, EOS & Co. as private sales transactions that fall under the Income Tax Act (EStG).
There is of course no Bitcoin tax or even a Bitcoin tax return, but many netizens and crypto investors search Google for just that. For the sake of simplicity, we will therefore speak of “bitcoin tax return” in this guide when it comes to claiming a cryptocurrency for tax purposes in a tax return.
So when do investors have to pay taxes on Ripple, NEO, EOS and Bitcoin, what exactly do you have to look out for in a “Bitcoin tax return” and what role do profits made in the past with internet currencies play? The answers are below.
A notice: You can also find more helpful tips about buying bitcoin in the buying bitcoin guide. What you can basically claim for tax purposes and how you can get money back from the tax office, we will tell you in our tax return guide.