Calculating Crypto Tax: Formula, Worked Example and Tax Table

The formula is simple: disposal proceeds minus acquisition cost minus fees gives you the gain. If it is above the 1,000-euro exemption threshold and less than a year passed between purchase and sale, you pay tax on it at your personal rate. It only gets difficult once you have bought the same currency several times, because then the order decides. This article walks through the calculation on a concrete example, gives a table for the usual income brackets and names the points at which every calculator reaches its limits. The formula The taxable gain under section 23 of the German Income Tax Act works out like this: Disposal proceeds minus acquisition cost minus deductible expenses = gain or loss The acquisition cost includes the purchase price together with the buying fee. The deductible expenses cover the fees on the sale and the transaction costs that can be attributed directly to the transaction. General costs such as a hardware wallet or a custody charge cannot be deducted. A worked example The calculation for a sale inside the twelve-month window. The decisive point is in the last line: had more than twelve months passed between purchase and sale, the same gain would have stay...