It is time to calculate my tax for 2020 and I realize that in some cryptotrading I will be forced to pay MORE in tax then I have earned. Can you beat that....
Sweden is famous for high taxes and normaly I think we have a good system. But when I have to pay more money then I have earned I think something is weird....
This is how
If you invest in something and make money from it you have to pay 30 % tax.
So if I invest in BTC and make a profit of 1000 USD I need to pay 300 USD in tax.
But if you also have some losses same year you can lower your tax.
In stocks you calculate like this
PROFIT - LOSS = Your profit to pay tax at
But in crypto....
When you make profit you pay 30 % of that in tax
When you make loss you can calculate 70 % of that loss from your profit
PROFIT - (70% of your loss) = Your profit to pay tax at
And that is for every coin. You can not combine your loss/profit.
SO..IF.....
I buy a coin for 500 USD and sell it for 600 USD. Then I buy it for 600 and sell it for 500.
In an normal world I had a profit of 0.
But when using our tax calculation
PROFIT - (70% of your loss) = Your profit to pay tax at
100 - (70 % 100) =
100 - 70 =30
I have made ZERO in profit and have to pay 30 % at 30 USD for it.
Lets calculate with higher amounts and I need to sell crypto to get money for paying tax for a profit I never have made...
But lucky for me
Lucky for me I have not made so much trades. Thank you gas fee at Ether for that....
But still - It feels pretty weird...
And I also pay a company to help me calculate everything right.
HODL community gets 15 % of this blogpost payout
