![]() However, the person giving a gift must remember the rules on gift tax. See section 10 below regarding speculative intent. It is precisely the speculative intent that is decisive for whether the tax liability arises for trading assets under the State Tax Act. The reason for this is that you do not have “speculative intent” when receiving a gift and thus acquiring the crypto. It is tax-free and any gains made when later selling the crypto for fiat or other crypto is also tax-free. You are not taxed on crypto received as a gift. This may possibly be different for NFTs and follow an asset-for-asset principle because of the unique nature of NFTs.įeesmust be added to the acquisition cost when buying crypto and deducted from the selling price when selling crypto.įor example, if you buy 1 ETH for 15,000 DKK and pay 0.01 ETH in fees for the transaction (worth 150 DKK), the acquisition cost for your 1 ETH is 15,150 DKK. Until we get new tax rules on crypto, we expect the FIFO principle to be the predominant calculation method in practice. It is due to the generic nature of crypto. In practice, almost all trades are calculated according to the FIFO principle. But it is a very special exception, and the authorities’ documentation requirements are very high. In special cases, the tax authorities recognize that the calculation is made separately according to the asset-for-asset principle, and not according to the FIFO principle, if it can be documented that several quantities of the same cryptocurrency are kept separate. This method must be used, even if you paid a much higher price for the last purchased 0.5 BTC and would therefore prefer to offset this purchase price against the sale price to calculate the profit. This means that if, for example, you have bought 1.5 BTC in three trades where you bought 0.5 BTC each time, the profit from the sale of 0.25 BTC must be calculated by offsetting the purchase price for the first 0.25 BTC you bought against the sum you received for selling 0.25 BTC. In practice, the calculation of profits and losses is done according to the FIFO principle (First In, First Out) and when a sale occurs (upon realization of gains or losses). The tax value of the deduction above the threshold is approximately 27%. Therefore, you can only deduct the part of your total loss that exceeds DKK 6,500 (2021 level). However, there is a minimum threshold for tax deductions of DKK 6,500 (2021 level, the threshold changes from year to year). Lossesfrom spot trades must be declared as a tax deduction for common expenses (box 58 on your annual statement in 2022/2023). The tax rate depends on your other income but is taxed at up to approximately 53% (if you pay top tax). Profitsfrom such spot trades must be declared as part of your personal income (box 20 on your annual statement in 2022/2023). The question of speculative intent is described further in section 10 below. Note that this is the case when selling crypto both for fiat currency and for other crypto. ![]() ![]() Common spot trades, where you buy or sell cryptocurrency with speculation in mind, are taxed according to the State Taxation Act.
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