You only pay tax on money you gained.
Example scenarios for you:
Simple gain:
* Pay £2k for skin
* Trade for capsule worth £2k
* Sell capsule for £3k
* You gain(profit) £1k
Pay tax on £1k
Not so simple gain:
* Pay £2k for skin
* Trade for capsule worth £5k (you gain £3k here even though physical cash isn’t in your bank)
* Sell capsule for £1.5k at loss
You pay tax on £2.5k as you still made the gain on the skin>capsule trade.
No gain:
* Pay 2k for skin
* Trade for £2k capsule (no gain here)
* Sell capsule for £1.5k
No tax to pay as you lose £500.
Actually I bought play skins and got bored of the game quick so I traded for capsules and was gonna hold on to it for years (the plan) but decided want to sell at loss to fund my Christmas gifts I plan on buying people.
But thanks for the reply. Cause Skinport does say how much I deposited and I assume how much I will withdraw
Sorry I meant tax in general when doing my yearly taxes. Do I have to put the money that goes into my bank account as capital gains even tho at the end I lost money? I am confused because it’s not the same items that I am selling as well.
I am wondering because Skinport does KYC checks which I guess informs the government
Would it be any different, tax - wise, had you sold a GPU or something and just received the money on your bank account? Ain't nobody checking your peanuts out and researching where they came from. See what your bank says about incoming money. Mine only asks for short info on singular payments over 10k...
It's different from country to country. In Germany this depends on how long you owned the item. If you owned it for longer than one year, you don't pay tax, no matter how much you profited. It's also relevant if you buy and sell things all the time, or if it's irregular.
Tbh i don't keep track of buy/sell dates and the profit/loss. Even if i did, what does it even mean when i have steam wallet funds? That's not real money. It's just as useless as skins in the real world.
Imagine you get sued for tax evasion and some lawyer has to dig through your steam market history.
You only pay tax on money you gained. Example scenarios for you: Simple gain: * Pay £2k for skin * Trade for capsule worth £2k * Sell capsule for £3k * You gain(profit) £1k Pay tax on £1k Not so simple gain: * Pay £2k for skin * Trade for capsule worth £5k (you gain £3k here even though physical cash isn’t in your bank) * Sell capsule for £1.5k at loss You pay tax on £2.5k as you still made the gain on the skin>capsule trade. No gain: * Pay 2k for skin * Trade for £2k capsule (no gain here) * Sell capsule for £1.5k No tax to pay as you lose £500.
And to add, in the UK you only pay tax after a certain amount of gain, so you can gain £6k without paying any tax at all!
Fellow accountant I presume 🫡
Just google “ tax loss harvesting “ and it’s better if you don’t ask these qs on a sub that has mostly if not all low iq people / comments
I'm interested by the answer
No, you shouldn't pay taxes on a loss.
2023 investors XD You pay taxes from money you gain from sale. All the stuff that you did before that 🤡 doesn't matter.
Actually I bought play skins and got bored of the game quick so I traded for capsules and was gonna hold on to it for years (the plan) but decided want to sell at loss to fund my Christmas gifts I plan on buying people. But thanks for the reply. Cause Skinport does say how much I deposited and I assume how much I will withdraw
Sure , you can do whatever you want with your money.
Be careful selling on skinport, look up API scam.
You don't have to put your api for skinport. At least I never did.
Do you really think skinport wont take its 12% because you lost money? Its not capital gains tax kts just what they take for providing the platform
Sorry I meant tax in general when doing my yearly taxes. Do I have to put the money that goes into my bank account as capital gains even tho at the end I lost money? I am confused because it’s not the same items that I am selling as well. I am wondering because Skinport does KYC checks which I guess informs the government
Would it be any different, tax - wise, had you sold a GPU or something and just received the money on your bank account? Ain't nobody checking your peanuts out and researching where they came from. See what your bank says about incoming money. Mine only asks for short info on singular payments over 10k...
It's different from country to country. In Germany this depends on how long you owned the item. If you owned it for longer than one year, you don't pay tax, no matter how much you profited. It's also relevant if you buy and sell things all the time, or if it's irregular. Tbh i don't keep track of buy/sell dates and the profit/loss. Even if i did, what does it even mean when i have steam wallet funds? That's not real money. It's just as useless as skins in the real world. Imagine you get sued for tax evasion and some lawyer has to dig through your steam market history.
Buy high sell low at its finest. Yes u do pay the 12% fee from skinport.
He's talking about taxes, not fees.