How to declare your cryptocurrencies to taxes?

The dreaded time of the year has arrived: tax filing season has indeed begun! And you should not forget to tell the tax authorities about your cryptocurrency activity.

For many taxpayers, cryptocurrencies are part of the asset portfolio. Even if these are decentralized currencies, this does not prevent having to declare to the tax authorities the transactions of the past year, in particular exchanges in traditional fiat currencies, i.e. in euros, in dollars , and others.

Capital gains are taxable

You should know that capital gains over 305 euros are taxable. That is to say that if you have resold cryptos with a capital gain, then you have exchanged them for euros, you will pay tax on this sum, from this threshold. Please note, this also concerns the capital gains made after the sale of a property purchased with cryptocurrencies, for example a car that you would then have resold.

These capital gains are taxed at 30%, this is a flat tax which includes 17.2% of social security contributions and 12.8% of tax strictly speaking. From next year, the declaration of cryptos may be subject to a progressive scale rather than a flat rate.

It is very important to bear in mind that all cryptocurrency transactions carried out throughout the last year must be declared to taxes, both the purchase and the sale of crypto in fiat money. And do not forget either that the tax authorities require the declaration of bank accounts that one has abroad, often used for transactions on exchange platforms.

The electronic tax declaration automatically calculates the amount of capital gains and losses on form 2042 (this is the main document of the declaration). To declare your cryptos, you must download the Cerfa 2086 form. All the information is available on the website of the Ministry of the Economy, at this address. The end of the campaign depends on the department of residence, it runs from May 24 to June 8.

Leave a Comment