The tax return must be completed by the end of March, at least for those who have not applied for an extension of the filing deadline. Countless taxpayers face a new challenge this year: they recently jumped on the crypto caravan and bought bitcoin or other tokens. Blick clarifies the most important questions about cryptocurrencies in his tax return.
Do you have to declare cryptocurrencies to tax authorities?
Strictly speaking, anyone who fails to declare bitcoin, ether and whatever it is called is tax evasion. “Cryptocurrencies are seen as assets by tax authorities,” says Markus Stoll (49). He is a trustee specialist at VZ Rechts- und Steuerberatung AG. Cryptocurrencies must be declared as assets and taxed. “Giving nothing is illegal!” Stoll said. he warns.
Where do I need to specify the value of my Bitcoin and Co.?
“Crypto-assets should be listed on securities,” says tax expert Stoll. These will be published under the heading “Other credits”. And at what they have at the end of the year. These tax values can be inquired at www.ictax.admin.ch.
I do not have a capital statement for my cryptocurrencies. What is it now?
Banks issue a capital statement for tax purposes at the end of the year. Crypto trading platforms such as Etoro, Coinbase or Binance usually do not provide such proof. And now? “A simple screenshot is sufficient as proof,” says Markus Stoll. It is important to provide reliable evidence of the entire crypto portfolio. A screenshot of the portfolio should be sent in hard copy.
At the end of 2021, Bitcoin gained 34 percent more than at the beginning of the year. Is value gain taxed?
“No, capital gains from private investments are not taxable,” says tax advisor Stoll. This applies similarly to gains from share prices. The situation is different for professional traders who trade with larger amounts of borrowed capital. “You must denote the gains from price increases as income,” says Stoll.
When trading through online platforms or brokers, every transaction has a cost. Are these charges tax deductible?
“No,” says Markus Stoll. “Trade-related costs are not deductible.” The situation is different for any custody fee. “Costs for storing crypto can be claimed as a deduction.”
My 16 year old daughter bought bitcoin. Do I need to state this on my tax return?
“As parents, you must declare the assets of the children,” says the tax expert. Similar to children’s bank account, parents have to pay taxes on children’s cryptocurrencies until they reach the age of majority.