The dreaded test 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 will be able to tame this obligation without too much difficulty.
Crypto: your reporting obligations from A to Z
First essential reflex: identify precisely what you must declare. Forget your gross capital gains! These are your taxable transactions for the year that must be entered one by one on form 2086. Concretely, each sale of crypto against euros, dollars or any other legal currency must appear there, as must your purchases paid in crypto.
But that's not all ! Also, do not forget to complete annex 3916-bis to report your crypto accounts held abroad, such as on exchange platforms such as Coinbase or Binance. The only exception is that non-custodial wallets where you hold the private keys do not have to be declared.
Timing is also a key factor. The online declaration opened on April 11, 2024 on the French tax website. But you will only have a few weeks to find out everything. The deadline is May 23 for departments 01 to 19; by May 30 for ages 20 to 54; and June 6 for 55 to 976. For the paper declaration, the deadline is brought forward 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 takes into account parameters such as the total amount invested in crypto but above all the exact value of your complete crypto portfolio at precise moment of each taxable transaction.
Once this calculation step has been carried out transaction by transaction, you will be able to deduct your possible capital losses for the year from the capital gains made. The resulting amount will then be subject to the single withholding tax of 30%, unless you choose to opt for the progressive scale of income tax.
But once again, beware of exceptions! For income from mining, staking, play-to-earn or even NFTs and airdrops, special rules apply with specific taxation.
No need to panic! The main thing is to anticipate the crypto declaration, to know your obligations and these key dates from April 11 to June 6, 2024. You can also rely on dedicated online solutions which will automate the calculations. Or call on a crypto tax expert to declare legally! With the right reflexes, the 2024 declaration will have almost no secrets for you. An essential for investing with peace of mind!
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