CryptoTax: The ultimate crypto tool for filing taxes

“I tried to declare my crypto taxes with a smile, they prefer a check” (Jean Yanne) – We are not going to tell stories, it is very easy toopen an account on a platform and buy some cryptocurrencies. A little KYC here, a little transfer there and here you are in the wonderful world of crypto! And go ahead, I buy, I resell, following the trends, I even make a few profits and I swim in digital carelessness. But when spring comes and the cherry trees are in bloom, a little music comes to your ears and your lightness suddenly disappears. Like Blanquette in the mountains, now is the time to get serious and listen to the call of the valley: you have to file your tax return.

Le Journal du Coin and Le Trading du Coin will do everything to simplify things for you and support you in this process. First of all, we will see together what legal obligations are imposed on you. Then we will see, at the end of the article, how Coin Trading can concretely help you.

Crypto or not, I have to declare my foreign accounts to taxes

You are obliged to declare the accounts opened, closed, held or used during the past year and which are domiciled abroad. Are therefore not concerned, French platforms such as Justmining, feelingminingCoinHouse or Paymium.

A foreign asset account, what is that?

An account abroad is considered open when you own cryptos on a platform that is not in France, whether:

  • Those where we verify your identity at registration (KYC)
  • Others where your identity is not verified
  • Those where you cannot deposit traditional currency (currency called FIAT)
  • Even those where you have not deposited anything after registering there

Example of platforms (non-exhaustive list)

All accounts held on these platforms must be declared to taxes

How do I declare my accounts for taxes?

The declaration of digital asset accounts must be made at the same time as the declaration of income. Just complete the Cerfa 3916-BIS form for each account held and attach it to your annual statement. It is important to understand that you must complete one form per platform. You will need various information about your favorite exchange such as the address, the opening date but nothing too complicated do not worry.

What are the risks if I don’t?

  • If the platform offers traditional fiat currency I risk a fine of 1500€ per undeclared account.
  • If the platform only offers digital assets I risk a fine of €750 per undeclared account.

Notes and Comments:

And my “hardware wallet type Ledger key ? Officially they do not constitute an account abroad. But if you have traded cryptos with traditional currency, you may need to declare it.

The statement was the simple part of the article. Now is where things get complicated. We hang on, we take a deep breath and we go!

I must declare the transactions carried out during the year

You are required to report all transactions, capital gains and losses of year N-1 involving traditional fiat currency.

What is a trade?

As a reminder, the tax services call a “transaction” any exchange of crypto-assets into a traditional fiat currency. Are therefore not concerned:

  • cryptocurrency transfers from one platform to another
  • payments in traditional fiat currency from your bank to a platform
  • exchanges and swaps from one cryptocurrency to another cryptocurrency (same stablecoin)

What are these crypto capital gains to declare for taxes?

If you exchange cryptocurrency to a traditional currency for less than €305 during the year, you are not affected by the transaction declaration.

Beyond this amount, you must declare all capital gains, however small, as well as the various transactions that led to this capital gain.

How do I calculate my capital gains?

I’ll ask you the calculation first, we’ll talk about it later:

To properly declare your cryptos, it is important to understand the calculation of the added value that you have been able to derive from your cryptos.
It is not so simple to calculate the crypto capital gains to declare to taxes

Miscellaneous remarks:

  • You have to do this calculation for each transaction.
  • Foreign exchange and trading fees are already included in the calculation because a capital gain means that you have already subtracted the fees.

Special cases

  • “What if I bought my cryptos years ago and only sell them now? “. It’s up to you to keep a log of your transactions to know the purchase price.
  • “And if I used my platform’s Visa/Mastercard card? “. This is included in the calculation of the capital gain because there is indeed a transition to a traditional currency.
  • ” And cash back of my platform card? “. Ditto, it is taken into account in the calculation and must therefore be declared.

How do I report transactions?

The declaration will be made immediately after the declaration of an account abroad with the CERFA form N°2086.

  • If there is a capital gain, report it on box 3AN of form 2042-C
  • If you note a capital loss, report it on box 3BN of form 2042-C

Don’t forget to check the 8UU box to accounts held abroad.

Now that you have understood how to declare your capital gains, it is time to determine which tax regime you are subject to.

What is my tax regime?

Here, the answers provided will remain vague because the law itself has not adapted to new behaviors.

Occasional or habitual activity?

This distinction has been enshrined in law, but several parameters must be considered: the frequency of transactions, the time between purchase and resale or the number of transactions in total. But if you’re wondering, chances are you’re in a habitual business.

CryptoTax helps you to see clearly in the declarations to be made and the taxes levied on the capital gains linked to your cryptocurrencies
CryptoTax, the ultimate tool for declaring your taxes

How can Coin Trading help me?

Le Trading du Coin is about to launch two new Master class called CryptoTax. There are two plans to choose from: Standard at €497 and Advanced at €997.

If you’ve made dozens or hundreds of transactions over the year, you’re going to need a hand filling out your tax return! So of course there are companies that do it for you, but isn’t it time tolearn to do it yourself ?

The objectives of these Masterclasses are:

  • Know all the tax requirements in digital assets
  • Properly declare your accounts, transactions and capital gains
  • Recognize the tax regimes and overcome administrative formalities

In addition to guiding you step-by-step through your tax procedures, you benefit from:

  • access to video training
  • access to automatic capital gains calculation software
  • a summary PDF
  • assistance with the declaration of accounts and transactions
  • a complete tax report and the help of a specialized lawyer
  • various personalized services and priority customer support

Here we have covered your obligations, and the least we can say is that it is dense. The expression “why make it simple when you can make it complicated?” befits our dear French administration! Whether you are a beginner or an experienced trader, the declaration stage is inevitable and it is time for you to learn its intricacies. Prepare your autonomy by taking a step ahead of everyone. Take the bull by the horns while you wait the return of bullfight. Consider the tax survival tool of the moment: CryptoTax, by coin trading

Coin Trading is part of the large Journal du Coin family. That’s why, dear readers, we’re offering you a 20% discount on your Masterclass with the code MCCFJDC20.

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