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Even currency is an asset for tax purposes: if you make a bunch of money trading forex you have to pay capital gains on that. There's nothing out of the ordinar
by Analemma_ 5y ago
Even currency is an asset for tax purposes: if you make a bunch of money trading forex you have to pay capital gains on that. There's nothing out of the ordinary regarding how cryptocurrency is treated here.
- ThrustVectoring 5y agoForeign exchange trading is usually on the futures market, and the futures contracts are an extremely standard financial asset. I believe the tax differences alluded to are of the form "If you buy a currency and then later exchange it for goods and services, you have to pay capital gains taxes if it was Bitcoin and you don't if it was Euros"
- kasey_junk 5y agoMost forex trading happens otc on spot or forward contracts not on futures.
- ska 5y agoIf I understand it correctly the latter isn't true. There are usually allowances for "vacation" type amounts in physical currency but they are small. It is different in that futures contracts etc. show up a cap gain on a standard asset. But just doing the exchange directly with currency can land you in a situation where you have taxable foreign income.
- gostsamo 5y agoIf you spend more than 10000 euro or dollars in this case, your bank must report the transaction. Same with btc.
- cargo8 5y agoEh not really true as they've explicitly stated every single swap / transaction for crypto should be reported vs having any sort of threshold