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For tax purposes, in the U.S., what he had at the time was an unrealized gain. So if he later went to convert that Bitcoin into U.S. dollars, he would have a ta
by D13Fd 6y ago
For tax purposes, in the U.S., what he had at the time was an unrealized gain. So if he later went to convert that Bitcoin into U.S. dollars, he would have a taxable event (i.e., if he cashed out the whole thing, he would owe taxes on the difference between his basis and the value at the time).
I don't know how it works in Germany though.
- isthisreality 6y agoThis would be a good way to launder Bitcoin to yourself without paying taxes on it. Could that be what this is?
- WA 6y agoGermany ditched the holding period a while back for stocks. You pay 25% plus a little bit (26.375% in reality) on every gain, no matter if you hold it for 10 years or for two seconds. Bitcoin is tax-free after a holding period of 1 year afaik. If you lose $500k, you don't owe taxes, congratulations. But you still lost money (even if you maybe only lost $300k, because the rest would've been taxes).