The News Spy is a provider that focuses on trading Bitcoin and other well-known cryptocurrencies. These can be traded via the software, i.e. bought and sold. In addition, you can place a bet on the course of the price.
If it falls or rises in a certain period of time as you have predicted, you can earn a lot of money. A lot of money? This brings us to an important topic. If you earn a lot of money, you have to pay tax on it, as is the case in Germany.
This also applies to profits from trading with Bitcoin and other cryptocurrencies. Even if you don’t have to pay tax on every euro, you still have to declare the profit from The News Spy in your tax return.
When do you have to declare profits on your tax return?
You only have to declare the profits you make in a calendar year if you have them paid out. Let’s assume that you have pure profits of approx. 5,000 euros in the calendar year 2021 and do not have them paid out, then none of them will be taxed.
If you continue to trade in 2022 and make a loss and finally only have 2000 euros paid out, only the 2000 euros will be taxed. In this way, users can decide for themselves when the tax burden will be credited to them.
There may be reasons why you should definitely make the payout this year, or why you should wait. In the case of very large winnings, a tax advisor can be of even better assistance.
You should always consult a tax advisor if you do not want to make false statements.
Let profits be taxed without filing a tax return
When you make profits from trading at The News Spy you also have to file a tax return. You are therefore obliged to file a tax return at the latest when you make a withdrawal from The News Spy.
If you haven’t done one otherwise, the profits from trading will change that. This can have a good effect on one’s finances, but can also have a negative effect, as one must then declare other income that would otherwise not have been declared.
By the way, up to 600 euros of the pure profits from trading are tax-free. Even if you do not reach the limit, you still have to declare the lower profits so that your tax return is complete.
If you don’t do this, nothing will probably happen to you. However, if you are unlucky, you can get into trouble with the tax office.