Hello,
I am still new to Koinly and just preparing my first tax report for crypto.
I aam not 100% sure about correct settings that need to be used for tax purposes in Germany.
Could anyone please share the correct setting?
Currently I have a set it to:
Realize gains on crypto → crypto trades: activated
Realize gains on liquidity transactions: deactivated
Treat airdrops as income: deactivated
Treat forks as income: activated
Treat mining as income: activated
Treat rewards as income: activated
Treat transfer fees as disposals: deactivated
Treat other gains as capital gains: activated (I am doing leverage trading from time to time)
Wallet based cost tracking: deactivated
Especially for the two points marked in bold I am not sure if my setting is set correctly.
I would appreciate any feedback.
Thank you.
Kind regards
I was hesitant about replying to your post because I am not familiar with German tax law. However, in case you don’t have any German tax experts weighing in, I thought I would offer a couple of suggestions.
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I suggest you have a look at Koinly’s Germany Crypto Tax Guide 2022 for guidance on your settings if you haven’t already done so. Here is the link: https://koinly.io/guides/crypto-tax-germany/
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Koinly’s Tax Guide would indicate that you are correct in deactivating Treat transfer fees as disposals? The relevant excerpt from the Guide is below:
Transferring crypto between wallets
Moving crypto between different exchanges, wallets or accounts is not a taxable event and doesn’t trigger income tax. Having said that, it’s important to keep track of these movements. Try an automated crypto tax software like Koinly to keep track of your cost-basis.
TAX FREE
Ok, thank you. I already knew the Crypto Tax Guide on Koinly.io but was not 100% sure about the correct setting. For the leverage trading, after doing some research I also think that it is set up correctly. Has to be activated.