Taxes of Staking Rewards in Germany

Hello germabros, I came upon something just now that says that you gotta wait 10 years for your staking rewards to become income-tax-free. Is this true? And what about your "principal" in regards to the actual staking rewards? are they counted in this 10 years period?

Attached: download.jpg (275x183, 3.8K)

just check our the cryptotax youtube videos.
/thread

>our
*out

the staking rewards are never tax free and have to be taxed as "Einkünfte aus Kapitalvermögen" in the moment when you receive the reward (in EUR of course).
What you heard is something even more scary: it might be the case that the collateral that you are staking will not be tax free after one year anymore but after 10 years, although different experts have different opinions on that. it is certainly true if you lend your cryptos and gain interest on that, but many argue that staking isn't lending and that the 10 year extension doesn't apply.

jeez so actually, since I've been staking my dot and receiving staking rewards for about a month or 2, I will need to declare and pay taxes on these staking rewards? jesus! and what if I turn all of this into btc and just hold it for a year?

Your principal may be taxed to the maximum wage slave extent if you get something like an interest rate on it and you don't hold it for 10 years.
But it depends if a law made against tax optimization for containers is deemed applicable for cryptos without tax optimizations...
Your staking income goes in your wage slave special reporting category and gets taxed up to 51%.
Isn't it nice to live in Germany?

The good news is that if you don't get any interest on it you may be able to sell your stack after holding it for 1 year without paying taxes.

I don't think that the taxation of staking rewards as "Einkünfte aus Kapitalvermögen" is scary at all because here you can apply the "Sparerpauschbetrag" which means that your gains (gains from ALL sources combined) until the limit of 801 Euro are tax-free.

the rewards that you earned are still to be taxed, although I think there is a Freibetrag, so if you're below that and don't have any other income from investments then you don't need to declare it.
if you turn all the dot into bitcoin then this is a taxable event too and profits have to be declared in your Einkommenssteuer. if it's a loss then you can write it off.

Did you try out to report your staking income as capital income?
My crypto accounting program seems to put it into the special income category.
I would prefer to pay 25% taxes on staking and not 50%...

Ok, but 801 euros is not much, I'm already way above that - unless you mean per month?

no i meant the 10 year extension for the collateral is scary. the taxation of the rewards seems fair.

bros what if I don't have a job? is crypto income tax free for me

I actually started staking just 2 months ago and didn't act at all on it, I was pretty naive and just assumed the 1year rule applied as well...

It's a bit painful to watch people use DeFi farming and not being able to take part in it because the risk/reward ratio is extremely negative.
The best solution if you want to stake is to create one wallet for staking and where you don't stake or loan so that you can sell from this one after 1 year and in the worst case the 10 year limit only applies to the wallet used for staking.

Fucking jews, they wont get a cent from me.

no i have not staked my coins yes, but I would totally declare staking rewards as capital income. they will tell you if they disagree.

They may not say anything for small amounts, but the capital income category is reserved for defined assets like stocks.
The reason you can sell your crypto after holding it for 1 year without taxes is because it's considered like gold and silver and reported in the Private Veräußerungsgeschäfte category.
Because of this difference the profit you make from lending or staking it is also to be reported in this category.
They have a free 400€ limit without taxes in this category and you can also keep your losses until next years.

So what about just selling all these staking-rewards-type coins into btc and just holding that stuff for a year? Would one be able to avoid all this bullshit? I'm talking about the principal, I think it's fair to pay income tax on the staking rewards desu

lmao they won't notice shit

Fuck and imagine once we start getting into paradrops and all the cool shit that's coming with dot

This. As soon as mixicles rolls out the jews are fucked.

>paying tax to Ahmeds 10 kids and wives

NGMI

Maybe if you use an exchange with their credit card for smaller amounts and never try to cash out into your bank.
I don't want to end up like the user who cashed out his ETH stack in 2017 in the UK and got reported as a drug dealer by his bank. The police raided his home and confiscated his computer and would have put him into jail for years if they had found problematic content on it.

weird, I cashed out a rather large amount of link in August and told my bank beforehand, so far so good... So what your saying is that as soon as I started staking my dot I was basically fucked, right? The 10 years period applies for that no matter what I do with it...

Also I'd like to add that I also asked my tax advisor here in Germany and they were very chill with it, confirmed the 1 year rule etc... Man I'm starting to regret getting into staking desu

again, some people say yes, some say no. if it is indeed handled like this then it should still be 1 year, but if it is considered as lending, like if you give someone a loan and get interest for it, then the 10 year rule could apply.
i really hope that we will get more clarity on this in the next year or so, I assume that ethereum staking will make the whole story interesting enough for the Finanzamt to publish some statement.

Just hold for 10 years

It shouldn't because that stupid law was made for containers abusing tax loopholes to get double tax reductions on its lost value.
But I can't tell what a greedy state going bankrupt will do to get more money when it sees an opportunity.
Unfortunately I don't have any information on someone experimenting on this yet.

What is a large amount for you? Millions?
Under 10k they don't have to automatically report it for money laundering.
I haven't tried out cashing out yet but I tried to document everything in case they ask for some justification.
An easy source would be the proof of having bought Link early and kept it in a wallet.

>It shouldn't because that stupid law was made for containers abusing tax loopholes to get double tax reductions on its lost value.
>But I can't tell what a greedy state going bankrupt will do to get more money when it sees an opportunity.
>Unfortunately I don't have any information on someone experimenting on this yet.
>What is a large amount for you? Millions?
One less zero
>An easy source would be the proof of having bought Link early and kept it in a wallet.
Yups and that's what I have too, let it sit there for > 1 year and then straight OTC sold on kraken

Keep in mind that it probably isn't taxed as "Kapitalertrag" but as "Sonstige Einkünfte", which means that the taxation free limit is 256 Euro, plus, the 256 Euro is taxed, too, if you exceed that limit because it's merely a "Freigrenze", not a "Freibetrag".

Ok, but another thing I don't really understand is that I'm not planning to sell these staking rewards for a while, so they stay unrealised. Yet I have to pay taxes on these in euros nonetheless, right? This just sounds strange to me