You didn't specify which country. In the U.S., this applies: https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/losses-homes-stocks-other-property/losses-homes-stocks-other-property-1
Topic: Proof of losses. Keeping forgotten altcoins wallets for taxes. (Read 166 times)
In my country (Spain), AFAIK, you fill the general summation of gains and loses in the form. There is a chance that they directly pass it, but in case they ask for more explanations about where these numbers come from, there is a general rule that states that it is admissible "all acceptable evidence in law", so you could prove it in any ways, except illegal ones -would not be the case-.
That said, it's up to the tax agency to accept these evidences or not, but if it is a big money and they don't agree with you, you could always go to trial and the judge should agree with you, as it is clear that if a coin becomes unlisted and there is no way to trade it, it is such a loss for you as if the value went to zero.
That said, it's up to the tax agency to accept these evidences or not, but if it is a big money and they don't agree with you, you could always go to trial and the judge should agree with you, as it is clear that if a coin becomes unlisted and there is no way to trade it, it is such a loss for you as if the value went to zero.
Here in Europe it is as jrrsparkles states, we are free to trade, purchase and accumulate but when
we convert into FIAT we are liable for taxes above a tax free allowance. In my country this is 33%
on profits with the first €1250 exempt.
Im not sure however how the profit is actually calculated, I have not been through this process.
The tax rate changes from countries to countries in the Europe as well since you said your country collects 33% tax for the capital gains then you should report the taxes based on your trade history which is available on your exchange in csv format. we convert into FIAT we are liable for taxes above a tax free allowance. In my country this is 33%
on profits with the first €1250 exempt.
Im not sure however how the profit is actually calculated, I have not been through this process.
Here in Europe it is as jrrsparkles states, we are free to trade, purchase and accumulate but when
we convert into FIAT we are liable for taxes above a tax free allowance. In my country this is 33%
on profits with the first €1250 exempt.
Im not sure however how the profit is actually calculated, I have not been through this process.
we convert into FIAT we are liable for taxes above a tax free allowance. In my country this is 33%
on profits with the first €1250 exempt.
Im not sure however how the profit is actually calculated, I have not been through this process.
thanks @jrrsparkles, it make sense.
It highly depends on your country's crypto regulation, generally countries tax only for the cryptos which you cash out then in fiat so if your crypto doesn't have any value then it is not possible to convert them and also file your tax papers for the losses.
In cryptocurrencies the gains are sometimes impressive, but it goes the same and often more for the losses. When an altcoin gets forgotten, become unlisted and no price tracking is available anymore, am I right to think that I can keep wallets to declare losses of value from them?
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