Crypto Taxation in Germany: Handling Incomplete or Missing Data
Incomplete or missing data is a common issue for many crypto investors in Germany. Sometimes, their own trading data exports from the exchanges they use are incomplete. Occasionally, a 'history export' on the exchanges is not possible, leading to gaps that can be costly because it is no longer feasible to determine profits and losses precisely. Traditional software solutions for calculating profits and losses often struggle with crypto trades that number in the thousands. Reliable solutions are required to ensure legal certainty and prevent excessive taxation.
Software-based profit/loss calculation
Cointracking and similar platforms trace the journey of cryptocurrencies from the point of inflow - whether it's through mining, staking, lending, buying, or DeFi investments like liquidity mining or yield farming. If the inflow results in a taxable gain or loss, the programs record this information for future offsetting against profits and losses from the same or different activities.
Naturally, all software solutions also analyze the outflow of cryptocurrencies, which could be through a sale, loss, or gift, for instance. Ultimately, Cointracking and similar platforms provide a total of the taxable gains and losses.
Issues arising from logical shortfalls of cryptocurrencies
If data is incomplete or missing, shortfalls often occur, with more cryptocurrencies leaving the portfolio than it contains. Clearly, an investor can never spend more cryptocurrencies than they have received. To get a result from the software nonetheless, the investor must manually input the missing/incomplete data. Some software may do this automatically.
In both scenarios, there's a risk that the calculated profits and losses are significantly skewed. This could cause problems with the tax authorities, as crypto investors are required to fully report their transactions. If this isn't feasible, the tax office must be notified so they can estimate the profits and losses if needed. Typically, this leads to higher taxes.
Legal certainty thanks to tested solutions from WINHELLER
This doesn't have to be the case! Besides blockchain research, there are tested methods for accurately determining profits and losses, thereby saving on taxes. Our team is ready to assist you in legally reporting your profits or losses to the tax authorities.
Our consultation services for missing crypto data
- Are you aware of missing data and are seeking a solution?
- Do you need assistance in compiling your crypto data?
- Would you like to learn how to ensure the completeness of your data in the future?
Our team has been dealing with crypto taxation since 2013 and is ready to provide you with its expertise. Contact us! We assist crypto investors with:
- The collection and legal reconstruction of missing/incomplete data
- The preparation of data for further processing in popular software solutions
- Adherence to all deadlines
- The preparation of your crypto tax return
- All communication with tax authorities
Consultants for the reconstruction of lost trading data in Germany
Our advisors, who specialize in all aspects of cryptocurrency taxation and processing, are ready to assist you with questions about Bitcoin profit taxation, supplementary returns, and income tax returns.
You can reach us most conveniently by e-mail (info@winheller.com), by phone (+49 69 76 75 77 85 28), or through our contact form for cryptocurrency taxation.
