Wallet Hacks in Austria: No Automatic Tax Loss for Stolen Crypto

Austrian tax authorities have clarified that losses incurred from wallet hacks do not automatically result in deductible capital losses.

This is according to a recent article, which notes that if an investor's Bitcoin is stolen through a hacking attack or fraud, they will not be able to claim the loss for tax purposes on privately held assets.

The reason is that theft, hacking attacks, and the loss of private keys do not constitute a taxable disposal in Austria.

This means that even if an investor's Bitcoin is stolen, they will not be able to offset the loss against gains from other investments, such as shares.

However, there are some exceptions. If a claim for compensation exists against an exchange or custodian, and the investor later receives damages or compensation, this can become relevant for tax purposes.