Hacker News Reader

Is this really the case? My expectation would be that you would be taxed on the net profits at the end of the year but would have no deductions on net losses at the end of the year. It's a bit skewed but I'm pretty sure that's how profits from overseas online gambling is taxed here in Denmark.

Either way, it would make sense to tax cryptocurrency trading by using the same tax code as other kinds of overseas online gambling.

View on HN

It is. Net profits are not taxed, but the profits of any profitable trade are. Trades resulting in loss are ignored.

The tax authorities interpreted cryptocurrencies not as a currency or as a financial asset, but as "trade agreements", which allowed them to take this stance. I'm not sure why they would skew the taxation so far against taxpayers' favor.

> but the profits of any profitable trade are. Trades resulting in loss are ignored.

Kind of like lottery winnings are taxed where they are taxed. Or is there a country that not only taxes lottery wins but also makes lottery tickets a deductible expense?

It's an interpretation which might or might not be correct. If you are living in Finland and believe that this is incorrect, then you are free to go to court and make your case to a judge as to why the tax authority is wrong.

Reply on news.ycombinator.com