Crypto taxes: The declaration, a real headache!

The dreaded moment for all crypto investors is fast approaching: the 2024 tax declaration. Juggling forms, deadlines, and calculation methods can quickly become a headache. But by following the right tips, you can tame this obligation without too much trouble.

Crypto: your declarative obligations from A to Z

The first essential step: identify precisely what you need to declare. Forget your gross capital gains! It is your taxable transactions of the year that you have to record one by one on form 2086. Specifically, every sale of crypto for euros, dollars, or any other fiat currency must be listed, as well as your purchases paid in crypto.

But that’s not all! Don’t forget also to fill in the annex 3916-bis to report your crypto accounts held abroad, such as on exchange platforms like Coinbase or Binance. The only exception, non-custodial wallets where you hold the private keys, do not have to be declared.

The calendar is also a key factor. Online declaration opened its doors on April 11, 2024, on the French tax website. But you only have a few weeks to enter everything. The deadline is set for May 23 for departments 01 to 19; May 30 for 20 to 54; and June 6 for 55 to 976. For paper declarations, the deadline is moved up to May 20.

The puzzle of calculating capital gains/losses

Forget the traditional FIFO (first-in, first-out) calculation, here a complex formula comes into play. This formula takes into account parameters such as the total amount invested in crypto and, above all, the exact value of your complete crypto portfolio at the precise moment of each taxable transaction.

Once this calculation step is completed operation by operation, you can deduct your possible capital losses of the year from the capital gains made. The resulting amount will then be subject to a flat tax of 30%, unless you choose to opt for the progressive income tax scale.

But again, beware of exceptions! For revenues from mining, staking, play-to-earn, or even NFTs and airdrops, special rules apply with specific taxation.

No need to panic! The key is to anticipate the crypto declaration, to be well aware of your obligations and these key dates from April 11 to June 6, 2024. You can also rely on dedicated online solutions that will automate calculations. Or seek help from a crypto tax expert to declare within the law! With the right reflexes, the 2024 declaration will almost have no secrets for you. Essential for investing with peace of mind!