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Tax situation in Germany

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I hope you are all fine with me writing in English. While I do understand everything in German, my writing skills aren't that great. I live in Germany and am looking for some clarification on the tax situation here. I understood that if you hodl for a minimum of 12 months, no capital gains are to be paid over crypto currencies. Is this correct and is there anything else to consider? I am a bit stunned and wonder how long this will last before the government claims its fair share ;)

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Hope somebody could answer this. I actually posted in the thread tzuvi linked here, but no answers yet.

I currently exchange fiat for ETH, which I sent to binance to buy XRP. I am planning to hold on to my stack for at least 12 months, but is the exchange from ETH to XRP tax liable? 

Also, let's say I bought 1000 XRP at 2.50 and in the current downturn and I buy another 1000XRP. Once the price hits 2.50 again, I sell 1000 XRP to lower my cost average. How would I calculate the tax on this? 

 

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@DQA You can contact @XRP_Godzilla he has a friend who can help you with your German taxes. Also as I told you before be aware of your 'world income' if you have any income from other countries like Holland (since you are buying crypto's with a dutch bank account). 

I also posted this link before:

 

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1 hour ago, ThomasTheTGV said:

@DQA You can contact @XRP_Godzilla he has a friend who can help you with your German taxes. Also as I told you before be aware of your 'world income' if you have any income from other countries like Holland (since you are buying crypto's with a dutch bank account). 

I also posted this link before:

 

I do not need to ask my tax friend ;). Currently, it seems that the German tax authorities are of the opinion that any gains resulting from the sale of crypto coins are tax free IF(!) the coins were held for a period of at least one year. Please note that any pairs trade (e.g. XRP---> BTC or ETH --->XRP) is regarded as a sale of the one coint (e.g. XRP, ETH) and an acquisition of the other coin (e.g. BTC, XRP) so that market value at the date of the trade needs to be documented!

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Generally (!) speaking, dividends paid out in XRP are subject to 25% plus a solidarity surcharge of 5.5% on it which results in a tax rate of 26.4%.

Please note that there also some exceptions in this area so that each case needs to be reviewed separately.

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On 1/16/2018 at 9:34 PM, XRP_Godzilla said:

I do not need to ask my tax friend ;). Currently, it seems that the German tax authorities are of the opinion that any gains resulting from the sale of crypto coins are tax free IF(!) the coins were held for a period of at least one year. Please note that any pairs trade (e.g. XRP---> BTC or ETH --->XRP) is regarded as a sale of the one coint (e.g. XRP, ETH) and an acquisition of the other coin (e.g. BTC, XRP) so that market value at the date of the trade needs to be documented!

Hi. Thanks a lot for your insight. I've got a question regarding the proceeds from sales calculation on crypto-to-crypto trades.

In Germany is it calculated FIFO? For example, if:

  • I bought 0.5 ETH on October 1st,
  • then bought 0.5 ETH on November 1st.
  • then I used 0.5 ETH to buy XRP on December 1st.

For tax purposes, my profit/loss for the ETH sale in December would be calculated against my purchase price in October, correct?

Thanks in advance!

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On 1/16/2018 at 9:34 PM, XRP_Godzilla said:

I do not need to ask my tax friend ;). Currently, it seems that the German tax authorities are of the opinion that any gains resulting from the sale of crypto coins are tax free IF(!) the coins were held for a period of at least one year. Please note that any pairs trade (e.g. XRP---> BTC or ETH --->XRP) is regarded as a sale of the one coint (e.g. XRP, ETH) and an acquisition of the other coin (e.g. BTC, XRP) so that market value at the date of the trade needs to be documented!

Thanks @XRP_Godzilla for this information. So any exchange is counted like if one is selling one coin and buying another and if this is done in a period shorter than 12 months, than one has to declare it? And how should one document the actual market value when the transition was done? Referring to some coin value site or how? Sorry for writing now, but I read this discussion just now and wanna be sure about all this taxes stuff. The last thing I want is to have problems in the future with taxes.

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Just came across this thread, never looked in here before :)

On 8/30/2018 at 5:44 PM, podenco said:

Thanks @XRP_Godzilla for this information. So any exchange is counted like if one is selling one coin and buying another and if this is done in a period shorter than 12 months, than one has to declare it? And how should one document the actual market value when the transition was done? Referring to some coin value site or how? ....

To your first question: yes, afaik and my tax guy told me. Example: I buy ETH for EUR and then XRP with that ETH one week later. After holding the XRP for over a year, I exit my position by buying BTC for my XRP then exchange the BTC to EUR all in one day.

Selling the BTC and the ETH ist taxable. But since I only pay taxes for gains (or get tax cuts for losses) this is no big deal, because I didn't hold the ETH (one week) and BTC (few hours) for long. The sale of my XRP in this example isn't taxed, because I held them for over a year.

Usually the exchanges give you the option to export your trade history. In there should be the precise rates and fees you paid for all your transactions, that's what you will need for your taxes. I will be done with my 2017 tax declaration in a few days, have a meeting with my tax people this week. If anything interesting comes up or anyone is interested in details, I will post here.

PS. I had BTC when it forked and got BCH and BTG. I sold it all in January 2018, so I will have to pay taxes on the full sale price, because I did get it for 0 EUR. That was kinda disappointing to me...

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28 minutes ago, Ripplebeliever said:

Ich bin interessiert 

Warum wir alle in englisch schreiben im deutschen Abteil... ? würde mich interessieren was dein Steuerberatee zu sagen hat

Der erste Beitrag hier war in englisch, da habe ich mich angepasst. Ich habe den Termin nochmal geschoben. Nächste Woche Do bin ich dort, werde berichten. 

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On 10/4/2018 at 6:29 PM, Muellhart said:

Der erste Beitrag hier war in englisch, da habe ich mich angepasst. Ich habe den Termin nochmal geschoben. Nächste Woche Do bin ich dort, werde berichten. 

Dankeschön 

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