🧾 Introduction
In the world of tradiational finance (stocks), a "Loss" is a bad thing that expires in 5 years. In the world of Polish Crypto Tax, a "Loss" is actually just "Excess Costs" — an asset that stays with you indefinitely until you use it.
If you sold your crypto for less than you bought it, or if you simply bought a lot and didn't sell anything, you need to report this in PIT-38. Doing so ensures you won't pay taxes on your future moon-bags.
💡 The Concept: Income vs. Costs
Polish crypto tax is a simple equation:
$$ \text{Profit} = \text{Income} - \text{Costs} $$
- Income: What you sold for fiat.
- Costs: What you bought for fiat.
If Costs > Income, you don't have a "Loss" in the traditional sense. You have Excess Costs (Nadwyżka kosztów uzyskania przychodów).
Why is this distinction important?
- Stock Loss: Can only reduce future stock profits by 50% per year.
- Crypto Excess Costs: Can reduce future crypto profits by 100%.
🧮 Example: The Bad Year
Let's say 2024 was a bear market for you.
- Bought: 1 BTC for 100,000 PLN.
- Sold: 1 BTC for 80,000 PLN (Panic sell).
Your Calculation:
- Income: 80,000 PLN
- Costs: 100,000 PLN
- Result: -20,000 PLN
In PIT-38: You put 80,000 in Income and 100,000 in Costs. The form calculates a difference of 20,000.
Next Year (2025): You make a profit of 50,000 PLN. You can take that entire 20,000 PLN from 2024 and subtract it from your 2025 income, tax-free.
🧾 How to Report It
You declare this in Section E of PIT-38.
- Fill the Current Year Fields: Put your actual Income and Costs (even if Costs are higher).
- Don't hide it: Some people think "I lost money, so I don't need to file." WRONG. If you don't file, the tax office sees 0 costs. Next year when you sell, you can't prove you had those costs, and you pay tax on the full amount.
⚠️ Key Rules
- No Expiration: Unlike stock losses (5 years), excess crypto costs generally carry forward indefinitely (as long as you keep declaring them).
- Same Source Only: You can only use crypto costs to offset crypto gains. You can't use your failed memecoin trade to lower the tax on your Apple dividend.
- HODLing is a "Loss": If you buy 1 BTC and don't sell it, your Income is 0, but your Cost is high. This counts as a "Loss" (Excess Cost) for tax purposes. Report it!
✅ Summary
Reporting a "loss" is actually just banking a tax credit for the future. Always file your PIT-38, even if you lost money. That loss is your shield against future taxes.