Bitcoin Lost in a Wallet Hack: What Tax Applies in Austria?

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Bitcoin lost to hackers? In Austria, the theft of privately held coins generally does not create a capital loss you can use for tax. Only a later payout can change that.Bitcoin Lost in a Wallet Hack: Can the Loss Be Claimed for Tax in Austria?A wallet hack can amount to a complete economic loss for investors who hold Bitcoin. For tax purposes, however, losing the coins does not automatically create a deductible capital loss in Austria.The theft of a cryptocurrency, a loss through fraud or a hacking attack, and the loss of the private key do not, in principle, constitute a disposal that is relevant for tax where the assets are held privately.An Economic Loss Is Not a Tax LossExample:Bitcoin bought for €20,000the wallet is hackedall of the Bitcoin is stolenEconomic loss: €20,000.For tax purposes, however, there is no disposal transaction at all. The investor has neither sold the Bitcoin nor exchanged it for another asset. In principle, therefore, no realised capital loss arises th...