Save time on ethereum taxes

Do you know how to report ethereum gains and losses on your taxes? With our simple and user-friendly guide, you can avoid mistakes and save time when you have to report your crypto trades to the Danish Tax Authority (Skat) annually.

Do you want to start your crypto-journey, and begin trading ethereum now? Then download Lunar for free now, and sign up to Lunar Block. Once you’ve signed up, you can get started with trading crypto immediately – directly from your phone.

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KEEP THE OVERVIEW WITH OUR GUIDE

You’re responsible for reporting any ethereum trades and other cryptocurrency trades to Skat - but it doesn’t have to be difficult. On the contrary, you can handle your taxes fast and with ease with help from our guide. We’ll send you an overview of all your crypto-trades by the end of the year, when it’s time to report your taxes. The guide gives you step-by-step guidance on how to file your trades – meaning any realised losses or gains– to Skat.

Be aware that losses and gains – and large fluctuations – are some of the risks connected to crypto investments.

When you trade ethereum for instance, you have the opportunity to yield large gains in a short amount of time – but you could also risk losing the entire amount just as quickly. We do not counsel on buying or selling and all decisions are yours to make.

How to trade ethereum

ETHEREUM: PERSONAL INCOME IN CASE OF GAINS - DEDUCTIBLE EXPENSE IN CASE OF LOSSES

When you earn money by selling cryptocurrency, you need to pay taxes on gains. The tax rate is the same as you would pay for personal income - so 37-52% depending on your tax bracket.

Due to the current taxation laws for ethereum and other cryptocurrencies, you cannot deduct losses from any gains, when you lose money on selling cryptocurrency. Here, you will get a deductible expense, corresponding to a tax value of about 25%. 

This means that you will be taxed with 37-52% in case of any gains, while you will get 25% in deductible expenses in case of any losses. If you were to earn 1,000 on ethereum, and you pay 37% in taxes, you would have to pay 370 DKK in taxes. And if you’ve lost 1,000 DKK on ethereum in the same year, you would “get” 250 DKK back.

An overall result of -120 DKK, even if you’ve technically broken even. This is called asynchronous taxation, which you can read more about here .

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

ONLY EVERY THIRD PERSON PAYS CORRECT TAXES ON ETHEREUM

The Danish Taxation Authority (Skattestyrelsen) researched how many Danes actually pay their taxes on ethereum and other cryptocurrencies correctly. It turns out that 67% did not report gains and losses correctly.

That’s a lot of people, who have a hard time understanding taxation laws surrounding cryptocurrencies. With Lunar Block, you’ll get a document containing all your crypto trades sent to you every year. Here, you can see how much you’ve earned, and how much you’ve lost. We’ll also send you a guide where you can see which boxes in the annual tax report you need to fill out to report your information correctly. 

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HOW TO INVEST IN CRYPTOCURRENCIES

Do you want to get started with trading cryptocurrency? Then Lunar Block is the perfect place to start. It’s a Danish platform, built to fit the needs and skills of everyone.

When you’ve downloaded the Lunar app, and signed up to Lunar Block, you’re all set to begin trading quickly. Buy your first cryptocurrency with just a few clicks.

In the app, you can see the rates of the different cryptocurrencies in real time. With that, you can always keep track of ethereum’s value.

If you decide to buy crypto, you need to be aware that all crypto trading involves a large risk.

The value of your cryptocurrency can rise as well as fall, and you could risk losing the entire amount you’ve used to buy crypto.

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AVOID POINTLESS FEES AND TRADE AT A SET PRICE

When you trade ethereum or any other cryptocurrency with us, you won’t have to worry about the pointless fees, you could risk running into elsewhere.

Instead, you’re getting a set, low trading price of 2,5%, and if you upgrade to Lunar Pro, that trading price is just 1%.

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FAQ

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

We do not counsel

We do not advise on currencies and do not make recommendations for either buying or selling. We can provide factual information about the different currencies, but past price developments are not an indication of future developments.

No information from Lunar Block should therefore be considered as recommendations and all decisions are up to you alone.