Bitcoin Across Multiple Wallets: How Austria Works Out the Acquisition Cost
Bitcoin across multiple wallets: how Austria works out the acquisition cost
Many bitcoin investors spread their holdings across several wallets: some sits on a hardware wallet, some on a crypto exchange, and further coins perhaps on an additional address. For tax purposes, the question then becomes whether Austria pools all bitcoin into a single average price.
The short answer is no. Under Austria's crypto currency regulation, the rolling average price is generally worked out for units of the same crypto currency on the same crypto currency address. If the coins are held in a wallet, the wallet as a whole can be used as the reference unit instead.
Multiple wallets can carry different acquisition costs
Anyone holding bitcoin across two separate wallets, for example, can therefore have different tax-relevant average prices.
A simplified example:
Wallet A
- 0.5 BTC bought for 10,000 euros
- average acquisition cost: 20,000 euros per BTC
Wallet B
- 0.5 BTC bought for 25,000 euros
- average acquisition cost: 50,000 euros per BTC
The two holdings are not automatically merged into a common acquisition price of 35,000 euros per bitcoin just because both wallets belong to the same person. What counts is the crypto currency address in question or, where used accordingly, the individual wallet.
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