![]() You do so by requesting a binding ruling from the Danish Tax Agency (Skattestyrelsen). If you move to Denmark and become liable to pay tax to Denmark, you can request information about how your stock of cryptocurrencies will be considered for tax purposes. As a rule, you should declare them in separate boxes: Losses in box 58 and profits in box 20 of your tax assessment notice. You are normally not allowed to offset a loss against any profits you have made. Please note that you enter any profit or loss in your tax assessment notice. There may be exceptions from the FIFO Principle and you are welcome to contact us if you need further information. See how you calculate your transactions according to the FIFO principle and establish whether you have made a profit or a loss in examples 1 and 2 below. That means that you also have to calculate any profit or loss you resulting from the transaction. If you use one type of cryptocurrency (such as bitcoins) to pay for another type of cryptocurrency (such as ribbles), you are considered to have sold bitcoins in order to buy ribbles. You have to calculate the profit or loss for each transaction individually, which means that you cannot deduct a loss from one transaction from a profit from another transaction. If, on the other hand, you sell all your bitcoins at the same time, you do not have to apply he FIFO principle but use the total purchase price for your entire stock of bitcoins to calculate your profit or loss. This means that if you bought 8 bitcoins in April and 5 in May and you want to sell 4 in June, you have to apply the purchase price of the first 4 bitcoins you bought in April to calculate your taxable profit or loss. If you have bought several of the same type of cryptocurrency and sell some of it, you have to calculate your profit and loss according to the First In First Out Principle (FIFO Principle). Profit or loss is the difference between the purchase price and the selling price. When you sell cryptocurrencies, you should calculate whether you have made a profit or a loss. You cannot offset loss against profit from different kinds of cryptocurrency that were bought in several transactions and sold in the same income year. This means that the cryptocurrencies you bought first are the first ones you sell. Instead, you should calculate each transaction individually according to the FIFO principle (FIFO = First In First Out). If, however, you subsequently buy more bitcoins before you sell the last 4 from your original holding of 10, you should not make a net calculation. If you are showing a loss after offsetting your loss, you should enter the loss in box 58 of your tax assessment notice.If you are showing a profit after offsetting your loss, you should enter the profit in box 20 of your tax assessment notice. ![]() This means that if, as an example, you sell 3 bitcoins with a profit and 3 without a profit, you have to make a net calculation. But a condition for this is that you do not buy any more bitcoins in between your transactions. If you do not own any bitcoins to start off with and buy, for example, 10 bitcoins in one transaction and then sell them in several transactions during the same income year, you may offset your loss against any profit you have made. Exceptional offsetting of loss against profit You should not offset a loss against any profit. If you have both made a profit and a loss on your transactions, you should normally enter your profit in box 20 of your tax assessment notice and your loss in box 58 of your tax assessment notice, respectively.
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