Bitcoin Prime allows you to invest in bitcoin on the internet. If you do well here, you can make good profits. But what happens after the payout that you request from Bitcoin Prime?
Do you have to pay tax on part of the profit in the end and what is the legal situation? Here is all the information you need to know so that you don’t go wrong.
First of all, in general terms, do you have to pay tax on the profits from Bitcoin Prime?
The answer here is very clear and simple: yes, you have to pay taxes. However, you have to differentiate here, because of course you only have to pay taxes on the pure profits. If you receive a payout, you must first offset it against the money you paid in.
Taxes have to be paid, because this is simply income that has to be listed in full at the end of the year. Since you made the deposit with the idea of making a profit, it has to be treated as such.
If you have a good tax advisor, they can reduce the amount to be paid a little at the end. Nevertheless, in theory you have to pay tax on every cent of your income. If it is only a few euros, this is not so bad.
However, when it comes to large profits, this can have a big impact on your wallet.
First you have to make a profit
The prerequisite for paying taxes is to make a profit first. This is where most people fail, so they don’t have to worry about taxes at all.
However, if the payout in the end is significantly higher than the deposit, you have to take the issue very seriously. With Bitcoin Prime, you have the opportunity to earn such a profit.
If you do well in the real money area, it is possible that you will have earned a good profit after just a few days.
Profit is accounted for at the end of the year
One does not have to recheck the taxes after every day or every month. The interval here is one year. So you can compare the profits from the whole year with the losses and then you have the total that has to be taxed.
It is also possible that you have high profits at the end of the year but were not lucky at the beginning. Thus, you do not have to pay tax on the profits at the end of the year, as these are offset against the losses at the beginning.