Assume I am using an automated system to buy and sell stocks or other regulated financial assets (bitcoins, ...) multiple times a day, each time making a small win or loss. Additionally, I am doing so with a broker that is not automatically deducting taxes on capital gains for me, and that does not let me set up a "Freistellungsauftrag" to use the 801 € of untaxed capital gains I am permitted each year under the "Abgeltungssteuer". I am acting as a private citizen, not a company.

How would these gains be declared? As the assets will not be held for the 12 months required to be exempt from the Abgeltungssteuer, I assume that I would have to fill out the "Anlage KAP" (capital gains) in my income tax and declare it under "Kapitalerträge ohne Steuerabzug" (capital gains without [automated] tax deduction) and would have the 801 € deducted from the resulting taxes automatically? If so, how do I document all the individual trades that led to the net gain / loss at the end of the year? Do I need to attach a document that lists the (potentially thousands of) trades that made up this result?

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    I'm quite sure that if you make multiple deals a day, then you will count as a professional trader, which means profits or losses are not capital gains, or losses, but income on which income tax has to be paid. On the other hand, your expenses to gain that income would be tax deductible.
    – gnasher729
    Aug 13 '17 at 16:18
  • @gnasher729 Maybe to add some context: while there would be a lot of trades, it would be low amounts of money (below 1000 €) changing hands. I'm just trying to figure out if trying this trading on a small scale out of curiosity would be worth the hassle with the tax declaration.
    – malexmave
    Aug 13 '17 at 17:36
  • As I am still new to this SE, I would be interested in the reason for the downvote so I can ask better questions in the future.
    – malexmave
    Aug 14 '17 at 9:08
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    Broker doesn't automatically deduct capital gains tax : that translates to a broker outside Germany, right? => also goes into form KAP, it asks for income (separately inside and outside Germany) and losses that have not yet been subject to German capital gains tax. You should get account statements from your broker that document those gains and losses. If the tax office wants to see them, they'll tell you so, they explicitly say nowadays that you should not send them any paper unless they ask. (Somhow I find it, er, unusual that you think about high frequency games before having "normal" ... Aug 30 '18 at 18:14
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    ... slow investments in place that yield gains to use up your free 801 €. Just a thought.) Aug 30 '18 at 18:15

You work with brokers, right? Their accoutn statements actually hve all you msut document. Monthyl account statements (as attachment) with the total provided. Done.

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