Smartsteuer makes preparing and submitting taxes easier through its user-friendly interface. The platform guides you step-by-step through the tax return process, making it easy even for beginners to file their taxes. The platform also offers helpful features to review feedback, make changes, and electronically submit the tax return to the tax authorities. With the option of a pre-filled tax return or data transfer from the previous year, filling out the tax return is simplified and time-saving.

Reporting Capital Gains from Margin Trading under § 20 EStG

1. Once you have registered and logged in, Smartsteuer will prompt you to answer some basic questions and enter your personal information, such as name, address, etc.
2. The app will ask you a series of questions to determine which sections you need to fill out. In the “Income” section under “Rental, Capital Assets“, choose “Capital Assets“. This is only required if you have capital gains from futures or margin trading.

1. Next, you will be prompted to describe the capital gains. You can simply name it “Crypto”, as you will enter the details from your Accointing report. Also, under “Investment Income (Form KAP)“, choose the second option “Lines 18-34, 52 KAP, Capital Gains that are not subject to domestic withholding tax or subject to the progressive income tax“.

1. Now enter the figures under “Kapitalerträge aus Margin Trading nach § 20 EStG” on the first page of your Accointing report as follows:

• Line 19: “Summe”
• Line 21: “Gewinne”
• Line 22: “Verluste + Gebühren”
• Line 24: “Verluste”

Reporting Profits or Losses from Trading in cryptocurrencies (§23 EStG) and income from other services (§ 22 No. 3 EStG)

1. In the “Income” section, under “Other Income“, select “Private Sales Transactions“.

1. Provided you have selected the “Private Sale Transactions” option, a new section will now appear in the left menu where you can select the type of private sale transaction. Select “Cryptocurrencies” here.

1. In the next section, you can enter both your profits and losses from crypto trading under §23 EStG and your taxable income under § 22 No. 3 EStG. Be sure to select “Yes” when asked whether the profit or loss from cryptocurrency trading has already been determined.

• In the field “Profit or Loss from Cryptocurrency Trading” (§23 EStG), the figure under “Steuerpflichtige Veräußerungen” on the first page of the Accointing report must be entered.
• In the field “Income from Staking and Lending” (§ 22 No. 3 EStG), the figure under “Steuerpflichtige Einkünfte” on the first page of the Accointing report must be entered.

After following all of the steps, you have now successfully transferred your cryptocurrency gains, losses, and income into your tax declaration.

The information contained in this guide, including any supplemental materials, is for general information purposes and does not constitute financial, investment, legal or tax advice. The present content is not intended as a thorough, in-depth analysis, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Please consult your tax advisor.