/biz/ - Business & Finance

I've met with a lawyer who knows crypto currency. I mentioned this plan on /biz/ before and one Anon asked me to report back afterwards. This applies to German tax laws, maybe to all of Europe similarly.
What I've taken away.

* Private vs. Commercial
I was told this is the most important aspect. Taxes are very different for private activities (like trading in your spare time) and commercial activities (professional full-time trader). In the latter case you must register a proper business. The line is blurred, especially for mining operations (see below.)

VERY IMPORTANT: Do not invest money for other people. This is a violation of European banking laws and can get you in deep trouble. \

You can borrow money from others, invest, and pay them back. This is legal, but swerves the tax pendulum in the direction of "commercial activity".

* Every single trade must be listed on your tax report, even if it's between altcoins, e.g. DOGE for Bitbeans or whatever, with the respective fiat value of each coin. Basically you need to software that handles it for you.
Fees and losses can be deducted.

* Tax-free after 1 hear of holding a coin
Any gains made after holding a coin for over 1 year are 100% tax free. However this only applies to _private_ trading. If the tax man thinks you're a full-time professional trader, this does not apply.

* """"Lost"""" Bitcoins
If you (((lose))) crypto, for example to hackers or a defective hard drive, private investors can't claim it as a loss. Professional traders can.
(Will have to double-check that but it's what I was told.)

* Mining
Mining seems to be a controversial topic in terms of tax law because some lawyers consider it commercial, no matter how small the operation is, while others consider a small mining operation akin to someone digging for gold nuggets in their spare time. The lines are blurred and you should consult with an accountant.