Bitcoin With No Cost Basis: How Austria Taxes the Sale

No cost basis left: how Austria taxes bitcoin gains

Old exchanges shut down, CSV files lost, or bitcoin moved to a hardware wallet years ago: among long-standing crypto investors in particular, the original acquisition costs are often missing by the time a sale comes around.

In Austria that does not mean the gain is automatically tax free. Quite the opposite. Where an Austrian crypto service provider obliged to withhold tax cannot use the actual tax data, the law provides for a flat-rate assumption of the acquisition costs for the purposes of that deduction. At the same time, this does not settle the tax question once and for all.

Which cost basis data does the crypto exchange need?

To withhold capital gains tax correctly, the Austrian provider has to know the acquisition data that is relevant for tax.

That mainly covers:

• the acquisition date or acquisition period,
• the actual acquisition costs,
• information on earlier tax-neutral crypto-to-crypto swaps.

The details can be passed on as early as the moment the bitcoin arrives with the provider. At the latest, they have to be available and shown to be plausible immediately before a taxable realisation.

… Continue reading the full article at the original source below.