Taxes for Bybit Contract Trading

Tax Questions
#1

Hi,

I’m wondering how profits of leverage trading with BTC based margin is handled. I’m from Germany but maybe it affects also other countries.

So let’s say I’ve opened a 1 BTC trade with some leverage and close it with 50% in profit. Which means my portfolio now includes 1,5 BTC instead of 1BTC. These 0,5 BTC are afterwards imported into Koinly as gains. Let’s say BTC is worth 10.000$, so my profit would be 5000$.
As I do not sell these BTCs for fiat I’m wondering when I have to pay taxes here.
Especially because the BTC value might change and let’s assume it falls to 1000$ till December. So my initial 5000$ profits are now only worth 500$.
How to handle this?
It would be very strange if I had to pay more taxes than my gains are worth at the end of the year.

Any one has an answer?

#2

Usually you have to pay a tax on any profits so there would be tax payable on the $5000 gain you made in Bitcoin (even if the value of BTC collapsed later on). However, always best to check with an accountant.

#3

I am from Germany, too.
Yes exactly, Kapitalertragssteuer, Soli, Kirchensteuer,so around 26-28% as tax on any gains made,
no matter the future developement of your assets’ valuations.

So even if BTC drops to ZERO!, you pay close to 30% tax on those 5000k in BTC for that years tax report, also important for staking rewards, same story, that is the negative side of volatility ; )
That’s why I do not stake anything and just hodl in Germany, during a bull market - it is far easier, safer and even more profitable, if you want to buy low, hodl over a year and sell high and next year buy low again. I think it only makes sense for IDOs, where the tokens are basically worthless while you get them, like 100€, and then rampage in 1 Minute to 10k, in that case you still pay tax on the 100€, that is OK :slight_smile: And you cannot re-balance your gains with normal hodl and trade when negative losses. So if you sell you BTC from another wallet, that just hodled a few months, you will get like -1000€ negative income subtracted from the 600€-tax-free limit, so next year you could take like 1600 tax-free, but it won’t help with derivatives losses/gains balancing, two different calculations and different taxes, capitals gains tax/income tax