With the Taxfix app, you can easily include your earnings from cryptocurrencies like Bitcoin in your tax return. Here’s what you need to know and how to enter your information step by step.
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Cryptocurrencies are taxed as private sales transactions, not capital gains.
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After 12 months of holding, profits are tax-free.
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Sales within one year are tax-free up to €600 (from 2024: €1,000).
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In the Taxfix app, you can choose between individual entry and total entry.
🚀 Your Guide
How Are Cryptocurrencies Taxed?
Cryptocurrencies like Bitcoin, Ethereum, or Ripple are not classified as currency or capital income, but as private sales transactions. This means they are treated similarly to profits from selling art or collectibles.
This classification has important tax consequences: under certain conditions, profits are completely tax-free, while in other cases they are fully taxable.
When Are Profits Tax-Free?
Two factors determine tax exemption:
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The holding period – how long you held the cryptocurrency.
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The profit amount – how much you earned from the sale.
📅 Tax-free: If you held a cryptocurrency for more than 12 months, your profit is completely tax-free, regardless of the amount. You don’t need to report it.
💰 Taxable: If you sell within 12 months, profits are tax-free up to €600 (from 2024: €1,000). If your profit exceeds this threshold, you must pay tax on the entire amount, not just the part above it.
⚠️ The exemption applies to all private sales combined – such as art, jewelry, or collectibles.
How Do I Calculate the Holding Period?
Determining how long you held your crypto can be complex. These two methods are commonly used:
FIFO Method (First-in, First-out)
The first coins you buy are the first you sell. This is the standard method accepted in Germany.
Example:
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Purchase 1: April 5, 2019 – 2 BTC at €233.90 each
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Purchase 2: Dec 17, 2019 – 2 BTC at €421.87 each
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Sale: June 16, 2020 – 3 BTC at €660 each
According to FIFO, the 2 BTC from Purchase 1 and 1 BTC from Purchase 2 are sold. The BTC from Purchase 2 was held less than a year and may be taxable.
LIFO Method (Last-in, First-out)
You sell the most recently purchased coins first. However, this method is not accepted by all tax offices.
⚠️ You can only switch methods after selling your entire wallet. The chosen method applies per wallet.
How Do I Calculate My Profit?
Sale price - purchase price - sales costs = profit / loss
Sales costs may include:
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Exchange fees
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Transaction fees
A positive result is a profit, a negative one is a loss.
What About Crypto Swaps?
Swapping Crypto A for Crypto B is considered a sale and purchase. You must:
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Check the holding period
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Calculate the profit or loss
It’s treated like any other taxable crypto transaction.
What If I Made a Loss?
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Losses can be offset against other profits from private sales in the same year.
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If you only have losses, you can carry them forward to offset future crypto gains.
This can also be recorded correctly in the Taxfix app. These losses reduce your tax burden if used against gains in the same year. If not, a loss carryforward can apply to future years.
How to Enter Crypto Income in the Taxfix App
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In the "About You" section, indicate that you invested in cryptocurrencies.
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The "Income" section will then show the "Private Sales Transactions" category.
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You have two options:
a) Individual Entry (for tax years before 2023)
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Enter the purchase and sale dates and amounts.
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The app calculates your gain or loss automatically.
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You can also enter additional sales costs (e.g., exchange fees).
b) Total Entry (mandatory from tax year 2023)
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Enter your total profit or loss.
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Losses must be entered as a positive value (without a minus sign).
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You can also indicate the type of income (e.g., sale, swap, etc.).
ℹ️ If you’re unsure how to calculate your crypto profit, there are crypto tax calculators available online.
🚀 Fill out the simple question-answer flow - we'll take care of the rest!
Still have questions?
We're here to help! Contact our support team: support@taxfix.de