A new tax regulation in Germany sets a \u20ac10,000 limit on losses from cryptocurrency-derivative trades. Residents will be able to offset their personal income tax base by up to that amount. BitcoinExchangeGuide reported, citing local media.<\/p>\n
\n\u201cIf a trader realises total profit of \u20ac1,000,000 from option trades and total losses of \u20ac800,000 in a single year, he will have to pay tax not on a profit of \u20ac200,000, but on \u20ac990,000,\u201d tax advisers explained.<\/p>\n<\/blockquote>\n
This is because only \u20ac10,000 can be offset against the \u20ac800,000 total losses, with \u20ac790,000 carried forward to future years, they added.<\/p>\n
\n\u201cIn effect, the law essentially bans all derivatives trading from 2021. Traders are still allowed to trade and generate tax debts far in excess of their profits. I am shocked by the malice behind this,\u201d he said.<\/p>\n<\/blockquote>\n
\nAt the bottom line, this law effectively bans all derivatives trading starting 2021. But it\u2019s even worse than that, because people are still allowed to trade and generate tax debt far in excess of their profit. I\u2019m in shock about the malice behind this (5\/6)<\/p>\n
\u2014 Hasu (@hasufl) December 19, 2020<\/a><\/p>\n<\/blockquote>\n
\nAs others have pointed out, this law is likely unconstitutional and it\u2019s a huge surprise to see it ratified. Expect a wave of lawsuits against German gov + good chance it will be overturned. But this can take months to years, so be careful in the meantime<\/p>\n
\u2014 Hasu (@hasufl) December 19, 2020<\/a><\/p>\n<\/blockquote>\n