An International Guide to Bitcoin Taxation (Part 1)

United States

Classification

Calculation: Capital Gain = (Proceed) — (Cost Basis)

  • Proceed refers to how much your coin was worth at the time of it’s sale.
  • Cost Basis refers to how much your coin cost to acquire.

Taxation

  • Long-Term refers to more than 1 year.
  • Long-Term Tax Rates: 0%, 15%, or 20% [dependent on income]
  • Short-Term refers to less than 1 year.
  • Short-Term Tax Rates: 10%, 12%, 22%, 24%, 32%, 35%, or 37% [dependent on income and filing status]

Important Dates

  • Filing Deadline = April 17th, 2018.
  • Last day to e-file federal tax return and last day to file individual tax returns for 2017 = October 15th, 2018.

Additional Information:

  • The 2018 Tax Plan clarifies that cryptocurrency can no longer be calculated using like-kind. Bitcoin.Tax allows like-kind calculation for US-based accounts for 2017 and all years prior.
  • Property gains are typically calculated using the FIFO (First In First Out) method, and that is the default method used on Bitcoin.Tax for US-based accounts.*

Canada

Classification

Calculation: Capital Gain (Proceeds) — (ACB + Outlays & Expenses)

  • Proceed refers to how much your coin was worth at the time of it’s sale.
  • ACB refers to “Adjusted Cost Basis”, which is how much your coin cost to acquire, plus any costs associated with it.
  • Outlays and Expenses refers to amounts incurred to sell your coin.

Taxation

  • The Inclusion Rate from 2001 to 2017 has been ½.
  • Inclusion Rate for 2018 is TBA (likely to be ½).
  • Multiply your Capital Gain by the Inclusion Rate to determine your taxable Capital Gain.

Important Dates

  • Individual: On or before April 30th, 2018.
  • Self-Employed: On or before June 15th, 2018.

Additional Information:

  • To mimic an Inclusion Rate of ½, Canadian-Based Bitcoin.Tax accounts use the Average-Cost method of calculation by default.

United Kingdom

Classification

Calculation

  • The standard CGT rate is 18% on residential property and 10% on other assets.
  • The high CGT rate is 28% on residential property and 20% on other assets.

Taxation

Important Dates

  • 2018/2019 Tax Year Begins April 6th, 2018.
  • Paper Returns Due @ Midnight on October 31st, 2018.
  • Online Returns Due @ Midnight on January 31st, 2019.

Additional Information

  • Click here for additional information on CGT in the United Kingdom.

Germany

Classification

Calculation

Taxation

Important Dates

  • Tax Returns Due = May 31st, 2018.
  • TBA

Additional Information

  • Additional Tax Information can be found here.

Australia

Classification

Calculation

  • “Long-term” in Australia is more than 1 year and allows for a 50% reduction in Capital Gains.
  • “Short-term” in Australia is less than 1 year and calls for the basic (Proceed) — (Cost Basis) to determine the Capital Gain.

Taxation

  • The Capital Gains Tax Rate for Individuals is the same as the Income Tax Rate.
  • Australian Residents can find their Income Tax Rates here.

Important Dates

  • Individual Returns are due by October 31st
  • Registered Tax Agents can file returns later than October 31st

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