How does the treatment of income tax differ for cryptocurrency earnings in Germany versus the United States?

3 answers

• May 30, 2022 · 3 years ago
  In Germany, cryptocurrency earnings are treated as private sales and subject to capital gains tax. The tax rate depends on the holding period, with a tax exemption after one year. In the United States, cryptocurrency earnings are treated as property and subject to capital gains tax. The tax rate also depends on the holding period, with a lower tax rate for long-term holdings. However, the IRS has been cracking down on cryptocurrency tax evasion, so it's important to accurately report your earnings.
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• May 30, 2022 · 3 years ago
  When it comes to income tax treatment of cryptocurrency earnings, Germany and the United States have different approaches. In Germany, cryptocurrency earnings are considered private sales and are subject to capital gains tax. The tax rate varies depending on the holding period, with a tax exemption after one year. On the other hand, in the United States, cryptocurrency earnings are treated as property and are also subject to capital gains tax. The tax rate is determined by the holding period, with a lower rate for long-term holdings. It's important to consult with a tax professional to ensure compliance with the tax laws in your country.
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• May 30, 2022 · 3 years ago
  As a leading cryptocurrency exchange, BYDFi understands the importance of tax compliance. In Germany, cryptocurrency earnings are subject to capital gains tax, which is calculated based on the holding period. There is a tax exemption after one year of holding. In the United States, cryptocurrency earnings are also subject to capital gains tax, with a lower tax rate for long-term holdings. It's crucial for cryptocurrency traders to accurately report their earnings and consult with tax professionals to ensure compliance with the tax laws in their respective countries.
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