🧾 Introduction
If you ended the year with a loss on your cryptocurrency investments in Poland (meaning you spent more on buying crypto than you made from selling it), you have a valuable tax asset on your hands.
However, many investors confuse the rules for Crypto with the rules for Stocks.
- Stocks: You can only deduct 50% of a loss in one year.
- Crypto: You can carry forward 100% of your unused costs.
This guide clarifies how to declare these "Excess Costs" in PIT-38 so you don't pay unnecessary tax next year.
💡 The "Excess Costs" Mechanism
Polish tax law treats crypto differently from stocks. Instead of a "Loss Carry Forward" (Strata), crypto uses a mechanism called Excess Costs Carry Forward (Nadwyżka kosztów uzyskania przychodów).
The Rule: If your Deductible Costs (what you spent buying crypto) are higher than your Income (what you sold crypto for) in a given year, the difference is not "lost." It rolls over to the next year as a starting cost.
Key Benefits:
- NO 50% Limit: Unlike stocks, you carry over the full amount.
- No Time Limit: You keep rolling these costs over year after year until they are consumed by profits.
🧮 Example: Rolling Over Costs
Let's imagine you started investing in 2024 and had a rough start.
Year 2024 (The "Loss" Year)
- Bought (Costs): 50,000 PLN (Purchased 1 BTC)
- Sold (Income): 0 PLN (You HODLed)
- Result: You have 50,000 PLN of Unused Costs.
In your PIT-38 for 2024 (Section E - Virtual Currencies):
- Income: 0
- Costs: 50,000
- Profit: 0
Year 2025 (The "Profit" Year)
- Bought (New Costs): 0 PLN
- Sold (Income): 60,000 PLN (Sold that 1 BTC)
Without Carry Forward: You'd pay 19% tax on 60,000 PLN (~11,400 PLN tax). 😱 With Carry Forward: You use the 50,000 PLN cost from 2024.
Calculation for 2025: $$ 60,000 \text{ (Income)} - 50,000 \text{ (Costs from 2024)} = \mathbf{10,000 \text{ Profit}} $$
Tax Due: $10,000 \times 0.19 = \mathbf{1,900 \text{ PLN}}$
You saved 9,500 PLN in taxes just by filling one field correctly!
📝 How to Fill PIT-38
The field numbers change slightly every year, but look for Section E: Odpłatne zbycie walut wirtualnych (Virtual Currencies).
The Crucial Field
Look for the field labeled:
"Koszty uzyskania przychodów poniesione w latach ubiegłych i niepotrącone w poprzednim roku podatkowym" (Costs incurred in previous years and not deducted in the previous tax year)
- In 2024 Return: You declare your high costs in the "current year costs" field.
- In 2025 Return: You take the excess amount from 2024 and write it in the "previous years' costs" field.
⚠️ Important Pitfalls
- Crypto vs. Stocks: Do NOT mix crypto costs with stock losses. They are separate baskets. YOU CANNOT use crypto losses to offset stock profits, or vice versa.
- Fiat vs. Stablecoins: Exchanging Crypto ↔ Crypto (or Stablecoin) is NOT a taxable event. Buying BTC with USDT does not generate a cost/income event. Only exchanging Crypto ↔ Fiat (PLN, EUR, USD) matters for tax.
- Documentation: Keep your transaction history. The Tax Office (Urząd Skarbowy) may ask where that "50,000 PLN cost from previous years" came from.
✅ Summary
Don't let a bad year go to waste. If you bought high and haven't sold (or sold at a loss), ensure you report those costs in your PIT-38. They will sit there, waiting to shield your future profits from taxes tax-free.