Selling Bitcoin at a Loss: Loss Offsetting in Austria
Selling Bitcoin at a Loss: How Loss Offsetting Works in Austria
If the Bitcoin price falls below the purchase price recognised for tax purposes, a sale in Austria can matter commercially and for your tax bill alike. A realised Bitcoin loss may in principle be offset against certain positive income from private investment capital.
The Austrian finance ministry expressly names dividends and capital gains on shares as possible counter-positions to crypto gains and losses.
A Paper Loss Alone Is Not Enough
As long as Bitcoin merely falls in value and stays in the wallet, there is in principle no loss realised for tax purposes.
Only realisation makes the loss usable for tax loss offsetting. The typical case is a sale for euros.
Example:
- Acquisition cost: 20,000 euros
- Later sale: 14,000 euros
- Realised loss: 6,000 euros
This loss can in principle be offset against suitable positive investment income from the same year.
Which Gains Can Be Offset?
Bitcoin losses can be offset in particular against positive investment income that is taxed in the same way.
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