«Not declaring anything is illegal!»
This is how you tax Bitcoin and Co. correctly
Everyone has to fill them out, nobody really likes doing it: the tax return is due again. Blick answers the six most important questions about cryptocurrencies and their correct taxation.
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Bitcoins and other cryptocurrencies must be declared for taxes.
The tax return must be completed by the end of March – at least for those who are not applying for an extension of the deadline. Countless taxpayers are facing a new challenge this year: they recently jumped on the crypto bandwagon and bought bitcoins or other tokens. Blick clarifies the most important questions about cryptocurrencies in the tax return.
Do you have to declare cryptocurrencies to the tax authorities?
Strictly speaking, anyone who does not declare bitcoins, ether and whatever they are called is committing tax evasion. “Crypto currencies are viewed by the tax authorities as assets,” says Markus Stoll (49). He is a fiduciary expert at VZ Rechts- und Steuerberatung AG. Cryptocurrencies must be stated as assets and taxed. “Not giving anything is illegal!” warns Stoll.
Where do I have to state the value of my Bitcoin and Co.?
“Crypto assets should be listed in the list of securities,” says tax expert Stoll. They are to be posted under “Other credits”. And at the value they had at the end of the year. These tax values can be queried at www.ictax.admin.ch.
I don’t have a statement of capital for my cryptocurrencies. What now?
Banks issue a capital statement for tax purposes for accounts at the end of the year. Crypto trading platforms such as Etoro, Coinbase or Binance usually do not issue such proof. And now? “A simple screenshot is sufficient as proof,” says Markus Stoll. It is important that credible proof of the complete crypto portfolio is provided. The screenshot of the portfolio must be submitted in printed form.
At the end of 2021, Bitcoin was worth 34 percent more than at the beginning of the year. Does the gain in value have to be taxed?
“No, capital gains from private investments are not taxable,” says tax consultant Stoll. This applies analogously to gains from share prices. It is different for professional traders who trade with larger amounts of borrowed capital. “You have to state gains from price increases as income,” says Stoll.
When trading through online platforms or brokers, each transaction costs money. Can these costs be deducted from taxes?
“No,” says Markus Stoll. “Costs associated with trading cannot be deducted.” The situation is different with any custody fees. “Costs for storing the cryptos may be claimed as deductions.”
My 16-year-old daughter bought bitcoins. Do I have to state this on the tax return?
“As parents, you have to declare the children’s assets,” says the tax expert. Similar to the children’s bank account, the parents have to pay tax on the children’s cryptocurrencies until they are of legal age.