Finland tax authorities matching Bitcoin transactions and bank transfers

Post by ptaipale » Fri, Apr 20, 2018, 12:57 PM UTC

pjc50 wrote: post #54

hedgew wrote: post #7

All they're doing is looking for bank transactions to crypto exchanges in citizens' accounts. What this article doesn't tell, is that the current cryptocurrency taxation in Finland is unreasonable. You pay 30-34% tax on any profit, but you can not deduct losses. If you had bought 1 BTC at $1000, another at $14000, and sold both at $3000 you would owe $600 in taxes even though you lost $9000. You can imagine how peopl…

I'm skeptical of this, and went looking for primary sources. The Finnish tax authority website seems to have a different example: https://translate.google.com/translate?sl=fi&tl=en&js=y&prev... (from https://www.vero.fi/syventavat-vero-ohjeet/ohje-hakusivu/484... ) "Example 1: One person has in the past bought 1,000 bitcoins for 500 euros, ie one Bitcoin cost EUR 0.5. He later bought more 500 bitcoins for 500 euros,…

Post by paulie_a » Fri, Apr 20, 2018, 1:11 PM UTC

craigsmansion wrote: post #46

Jhsto wrote: post #20

Earlier quoted context omitted.

This is even worse if you are a student who receives government aids: transactions are regarded as income (whether loss or profit) by the social insurance institution. So in other words, if you buy Bitcoin for 1000 euros and sell it at 500, you have made efficiently 500 euros in "income." With the notion of the parent post, this makes trading unviable, because if you exceed 12K€ in income a year (in any form, be that…

If one is a student who receives government aid, maybe one shouldn't be speculating in crypto-currencies.

Post by charlesdm » Fri, Apr 20, 2018, 1:29 PM UTC

hedgew wrote: post #7

All they're doing is looking for bank transactions to crypto exchanges in citizens' accounts. What this article doesn't tell, is that the current cryptocurrency taxation in Finland is unreasonable. You pay 30-34% tax on any profit, but you can not deduct losses. If you had bought 1 BTC at $1000, another at $14000, and sold both at $3000 you would owe $600 in taxes even though you lost $9000. You can imagine how peopl…

Post by bitreality » Fri, Apr 20, 2018, 1:32 PM UTC

anc84 wrote: post #43

AznHisoka wrote: post #10

Earlier quoted context omitted.

Jesus, you can’t deduct losses? If it is only for crypto, I gotta believe its a perverse way to dissuade citizens from investing in crypto. These crypto tax articles become less and less relevant in the coming tax year as people are going to be filing losses , not gains. I expect headlines like “How to make sure you add up your crypto losses to the full amount”

> investing in crypto LOL

Post by 21 » Fri, Apr 20, 2018, 1:35 PM UTC

mvindahl wrote: post #45

hedgew wrote: post #22

Earlier quoted context omitted.

That doesn't sound right. The authorities in Finland specifically tax gains made with cryptocurrencies. You only pay tax if you make profit on any individual trade. But you can not deduct trades that made a loss. It's not exactly a wealth tax, but it's also hard to consider a capital gains tax because you can't deduct losses. Treating other investment products this way would probably have horrific results, because it…

If you buy stocks in a publicly traded Finnish company, then you're taking on a risk in the hope of making a profit. But you are also putting your money at work in the Finnish economy, stimulating job creation and growth. Everybody wins, hopefully. If, on the other hand, you put down your money in bitcoin or at the online blackjack tables then you're gambling, not investing. Win or lose, your gamble creates zero dome…