Taxation for losses in cryptocurrency

gusk82

Hi,
I started to invest some money in cryptocurrency in January 2018. I used Coinbase and then Binance to trade a lot of altcoins. Since I was unexperienced and this year hasn't been good so far for cryptocurrency investments the result has been really discouraging with big losses after dozens or even more than a hundred operations.

I'm planning to withdraw that money before the year ends.
Could anyone please provide any info about how to declare this or if this is even needed for losses?

I hope I don't need to include information for every single operation.

Any help would be appreciated. Thanks in advance

thegolfer

gusk82 wrote: »

Hi,
I started to invest some money in cryptocurrency in January 2018. I used Coinbase and then Binance to trade a lot of altcoins. Since I was unexperienced and this year hasn't been good so far for cryptocurrency investments the result has been really discouraging with big losses after dozens or even more than a hundred operations.

I'm planning to withdraw that money before the year ends.
Could anyone please provide any info about how to declare this or if this is even needed for losses?

I hope I don't need to include information for every single operation.

Any help would be appreciated. Thanks in advance

Most likely, based on your description Of The activity, it would not be classified as trading Operations, and thus eligible for Capital Gains Tax.

Quite simply if you put in 1000 and take out 400, all euro, within this year, then the 600 loss is available to carry forward against futurecapital gains.

The cumulative effect of all your crypt trades have resulted in a 600 loss.

There would be case law to try and frame these losses as a trade, however based on the description this would be quite burdensome, and very much weights against you.

gusk82

Would anything happen if I just do nothing after withdrawing the money? I understand that I will lose my right of carry forward the losses against future capitals gains, but is it mandatory for me to to do something, or can I just ignore it?
Thanks