Frequency of trading considered commercial activity?

Tax Questions
#1

I had a tax report with 4600 transactions
Based in Luxembourg
The tax guy mentioned he is considering to classify my activity as a commercial trader and not an individual investor
He was nice and understanding and agreed to meet in a few weeks
50-60% of the transactions are just moving tokens and stuff like that
I think I’m clear to convince him but just wondering if this is usual? This frequency is pretty normal in crypto I guess.
Note: the guy admitted that he doesn’t know crypto very well :slight_smile:
Thanks in advance for your helpful tips (if any)

#2

Hey @Ahmed_El_Baz Although I am no tax expert, that’s actually quite a low number of transactions in comparison to some others :sweat_smile:

I think you answered it yourself - the accountant is not crypto-savvy so perhaps is not aware. Also, we can show you the number of transactions that are taxable, as you say most were just transfers right? These don’t show up in the reports :+1:

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#5

By the way the tax guy I’m referring to is not my accountant it’s the guy from the tax authorities :slight_smile:
But again he said he wants to meet me to decide based on my clarifications
So let’s see

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#3

I think the general report says 4900 transactions but shows only 1400 trades or so
I think I need some guidance on the 2021 on my account yes :slight_smile:
How long does it take if I get the expert guidanxe option?

#7

@Ahmed_El_Baz This is normal, those other transactions are still required to track your activity and cost-basis :+1:

#4

Also if I may ask
Is 4900 actions and 1409 trades considered a commercial trade in any country anywhere?

#6

Not something I can answer, unfortunately, These things are usually decided by the tax office so you should direct this question to them!

Regarding an Expert Review - this is a paid service and we generally only recommend it if you have a lot of errors with your data import.

I would advise you to open a support ticket in the first instance, and perhaps the team can resolve your issues without you having to pay extra for a 1-1 service.

You can reach the team on [email protected]

#8

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