Selling Bitcoin at a Loss: Loss Offsetting in Austria

Selling Bitcoin at a Loss: How Loss Offsetting Works in AustriaIf 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 EnoughAs 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 eurosLater sale: 14,000 eurosRealised loss: 6,000 eurosThis 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.That can include:Gains on other taxable cryptocurrenciesShare gainsDividendsCertain other investment incomeWhat is not permitted, by contrast, is offse...