:book: Description
{% hint style="info" %} This guide lists the withdrawal labels available on Waltio for German users. Each label has a specific tax impact on the FIFO calculation and the taxation of your transactions.
👉 AP = Acquisition Price
👉 When a withdrawal neutralizes/impacts the FIFO cost, it is always impacted by the AP of the crypto withdrawn from the FIFO chronological table (= removal of the crypto from the portfolio). {% endhint %}
⚠️ Warnings
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The calculation method applicable in Germany is FIFO (First In, First Out) per wallet.
The 12-month holding rule applies: disposals after more than 12 months are tax-free under §23 EStG.
The €1,000 annual Freigrenze for private sales (§23 EStG) applies to the total net gain from all private sales in the year. {% endhint %}
📂 Withdrawal labels
Label | FIFO impact / Acquisition price | Taxable? | Crypto stock impact | Example |
Payment | Initial price of the crypto used for payment. ✅ Neutralizes FIFO | ✅ if held < 1 year. ❌ if held > 1 year | ⏬ Decrease | I buy a Waltio subscription in crypto with a BTC I've only owned for 4 months |
Fees | Initial cost unchanged. ✅ Neutralizes FIFO | ❌ | ⏬ Decrease | Buy: 1 BTC for EUR 10,000 + EUR 2,000 purchase fee. Sell: 1 BTC for EUR 30,000 − EUR 3,000 sale fees. Taxable capital gain = EUR 27,000 − EUR 12,000 = EUR 15,000 |
Staking deposit | AP: initial purchase price of the crypto put into staking. ❌ No FIFO impact | ❌ | ⏸ No change | Buy 1 ETH: EUR 1,000. Deposit 1 ETH for staking (at that time 1 ETH = EUR 3,000). AP: EUR 1,000 |
Transfer between accounts | AP: initial purchase price of the transferred crypto. ❌ No FIFO impact | ❌ | ⏸ No change | Buy 1 ETH on Binance: EUR 1,000. Transfer + deposit 1 ETH to Metamask (at that time 1 ETH = EUR 3,000). AP: EUR 1,000 |
Donation | ✅ Neutralizes FIFO | ❌ | ⏬ Decrease | I buy 1 BTC for EUR 20,000. I give 1 BTC. BTC exits FIFO |
Hack or Loss | ✅ Neutralizes FIFO | ❌ | ⏬ Decrease | I buy 1 BTC for EUR 20,000. Hack 1 BTC. Deductible base: EUR 20,000. BTC exits FIFO. ⚠️ Hack/loss must be proven by solid evidence: otherwise, tax fraud |
Liquidity addition (LP) | ✅ Neutralizes FIFO | ✅ if held < 1 year. ❌ if held > 1 year | ⏬ Decrease | I buy 1 ETH for EUR 1,000. ETH increases: 1 ETH = EUR 1,500. Deposit in LP. AP: EUR 1,000. Taxable base: EUR 500 |
Collateral deposit | AP: initial purchase price of the crypto used as collateral. ❌ No FIFO impact | ❌ | ⏸ No change | Buy 10 ETH for EUR 8,000. Collateral: 10 ETH for 0.5 BTC. AP: EUR 8,000 |
Other withdrawal | Initial cost unchanged. ✅ Neutralizes FIFO | ✅ if held < 1 year. ❌ if held > 1 year | ⏬ Decrease | ⚠️ Try to avoid this label as much as possible |
ICO Participation | Initial cost unchanged. ✅ Neutralizes FIFO | ✅ if held < 1 year. ❌ if held > 1 year | ⏬ Decrease | I buy 1 ETH for EUR 1,000. I participate in an ICO and deposit 1 ETH (ETH value at withdrawal: EUR 3,000). AP: EUR 1,000. Taxable base: EUR 2,000 |
Other loss | ✅ Neutralizes FIFO | ❌ | ⏬ Decrease | I buy 1 ETH for EUR 1,000. I lose my ETH (value at loss = EUR 3,000). ETH exits FIFO for EUR 1,000. ⚠️ Loss must be proven by solid evidence: otherwise, tax fraud |
NFT | Initial cost unchanged. ✅ Neutralizes FIFO | ✅ if held < 1 year. ❌ if held > 1 year | ⏬ Decrease | I buy 10 ETH for EUR 4,000. I buy an NFT for 10 ETH. NFT value: EUR 10,000. AP: EUR 10,000. Taxable base: EUR 6,000 |
Swap | Initial cost of swapped crypto unchanged. ✅ Neutralizes FIFO | ✅ if held < 1 year. ❌ if held > 1 year | ⏬ Decrease | Sale of 1 BTC for 10 ETH (1 ETH = EUR 1,000). Acquisition price 10 ETH: market value of ETH = EUR 1,000 |
Liquidation | Initial cost unchanged. ✅ Neutralizes FIFO | ✅ if held < 1 year. ❌ if held > 1 year | ⏬ Decrease | Buy 10 ETH for EUR 8,000. Collateral: 10 ETH for a 0.5 BTC loan. Liquidation 10 ETH (at that time 10 ETH = EUR 3,000). AP: EUR 8,000 |
Derivatives loss | ✅ Neutralizes FIFO | ✅ Specific regime. ❌ Not taxable on Waltio | ⏬ Decrease | Purchase of USD 10,000 for EUR 10,000. CFD value EUR 10,000. CFD loss of EUR 8,000. AP: EUR 10,000. CFD exits FIFO for EUR 8,000. Deductible base: EUR 8,000. 👉 Consult a lawyer - specific tax regime |
💡 Additional information
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To label your transactions, go to My transactions.
For more information on German cryptocurrency taxation, see the dedicated article in your Help Center.
To understand the LIFO and FIFO calculation methods, see the article Calculation methods. {% endhint %}