Be sure to enter both profit and loss
If you have both made a profit and a loss on your transactions, you should normally enter your profit in box 20 of your tax assessment notice and your loss in box 58 of your tax assessment notice, respectively. You should not offset a loss against any profit.
Exceptional offsetting of loss against profit
If you do not own any bitcoins to start off with and buy, for example, 10 bitcoins in one transaction and then sell them in several transactions during the same income year, you may offset your loss against any profit you have made. But a condition for this is that you do not buy any more bitcoins in between your transactions.
This means that if, as an example, you sell 3 bitcoins with a profit and 3 without a profit, you have to make a net calculation.
- If you are showing a profit after offsetting your loss, you should enter the profit in box 20 of your tax assessment notice.
- If you are showing a loss after offsetting your loss, you should enter the loss in box 58 of your tax assessment notice.
If, however, you subsequently buy more bitcoins before you sell the last 4 from your original holding of 10, you should not make a net calculation. Instead, you should calculate each transaction individually according to the FIFO principle (FIFO = First In First Out). This means that the cryptocurrencies you bought first are the first ones you sell.
You cannot offset loss against profit from different kinds of cryptocurrency that were bought in several transactions and sold in the same income year.
If in doubt, please contact us.
Correcting your tax assessment notice
- Log on by using your NemID
- Click 'Ret årsopgørelsen/oplysningsskemaet' (Correct your tax assessment notice/tax return).
- box 20 'Anden personlig indkomst uden AM-bidrag' (Other personal income not subject to labour market contributions).
- Enter your loss for the year in box 58 'Øvrige lønmodtagerudgifter' (Other employment-related expenses). Please note that you should not deduct your personal allowance stated next to the box.
- Click 'Godkend' (Accept).
- You have now corrected your tax assessment notice.
If you want to avoid outstanding tax you can state your expected profit or loss in your preliminary income assessment.
Correcting your preliminary income assessment
- Log on by using your NemID
- Enter your expected profit for the year in field 250 'Anden personlig indkomst uden AM-bidrag' (Other personal income not subject to labour market contribution).
- Enter your expected loss for the year in field 449 'Øvrige lønmodtagerudgifter' (Other employment-related expenses). Please note that you should not deduct your personal allowance stated next to the field.
- Click 'Beregn' (Calculate) and then 'Godkend' (Accept).
- You have now corrected your preliminary income assessment.