Bitcoin Lost to a Scam: What Counts as a Tax Loss 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.Lost bitcoin to a scam? Why Austria generally does not recognise the damage as a tax loss for privately held assets, and when compensation payments start to matter.Bitcoin lost to fraud: what the Austrian tax office recognises as a loss Fake investment platforms, phishing or supposed crypto advisers: anyone who loses bitcoin to fraud may be facing a total loss in economic terms. For tax purposes in Austria, however, that does not automatically mean the original acquisition costs can be claimed as a loss. For privately held cryptocurrencies the basic rule is this: losing coins to fraud is not a disposal for tax purposes. What is missing is therefore a realisation event, the thing that would trigger a capital loss you could offset against tax. 20,000 euros gone – and still no tax loss? An example: Bitcoin bought for 20,000 euros the coins are transferred to the perpetrators as a result of fraud no repayment follows In economic terms the loss amounts to 20,000 euros. For tax purpos...