According german legislation, the first-in-first-out method (FiFo) is most suitable for reliably determining the acquisition costs of cryptocurrencies (cf. LfSt Bayern v. 12.3.2013, p. 2256.1.1-6/4 St32). In other words, it is assumed that those coins which were first purchased / mined are also those which were first used in the context of the private sale transaction. Experience values for the legal treatment of other calculation methods (e.g. last-in-first-out) are scarce to non-existent. When determining the acquisition costs, the problem often arises that coins were acquired at different times and different exchange rates/acquisition costs.
For more information, please consult our blog article on how to correctly enter cryptocurrencies in your tax return(in German only).
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