The tax return must be completed by the end of March – at least for those who do not apply for an extension of the deadline. Countless taxpayers face a new challenge this year: They recently jumped on the crypto bandwagon and bought bitcoin or other tokens. Blick clarifies the most important questions about cryptocurrency in your tax return.
Should you declare cryptocurrency to tax authorities?
Strictly speaking, anyone who does not declare bitcoins, ether and whatever they are called is committing tax evasion. “The tax authorities view cryptocurrencies as an asset,” says Marcus Stoll (49). He is a credit expert at VZ Rechts- und Steuerberatung AG. Cryptocurrencies should be mentioned as assets and subject to taxation. “Don’t give anything illegal!” Stoll warns.
Where should I determine the value of Bitcoin and Co.?
“Crypto assets should be listed as securities,” says tax expert Stoll. It will be posted under “Other Credits”. And the value they got at the end of the year. These tax values can be found under www.ictax.admin.ch questioned.
I do not have a statement of capital for my cryptocurrency. What now?
Banks issue a capital statement for tax purposes to accounts at the end of the year. Cryptocurrency exchanges such as Etoro, Coinbase or Binance usually do not issue such proof. and now? “A simple screenshot is sufficient as proof,” says Marcus Stoll. It is important to provide credible proof of a complete crypto wallet. The screenshot of the portfolio must be submitted in printed form.
At the end of 2021, the value of bitcoin was 34 percent more than it was at the beginning of the year. Should the gain in value be taxed?
“No, capital gains from private investments are not taxable,” says Stoll, a tax advisor. This applies similarly to the gains from stock prices. It is different for professional traders who trade with larger amounts of borrowed capital. “You have to mention the gains from higher prices as income,” Stoll says.
When trading through online platforms or brokers, every transaction costs money. Can these costs be deducted from taxes?
“No,” said Marcus Stoll. “The costs associated with trading cannot be deducted.” The situation is different with any custody fee. “Cryptocurrency storage costs can be claimed as deductions.”
My 16 year old daughter bought bitcoins. Should I mention this on my tax return?
“As parents, you have to declare the children’s assets,” says the tax expert. Similar to the children’s bank account, parents have to pay tax on cryptocurrency for the children until they reach the legal age.
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