Cryptocurrencies

Bitcoin and Crypto Taxation – The Easy Guide to Completing Your Tax Return – Cryptocurrencies

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How to declare your taxable transfers of Bitcoin and cryptocurrencies for the 2019 online tax return Gov. Tax? In your Bitcoin and crypto assets and tax forum, after studying what to declare for taxes, it’s time to learn how to go about it concretely.

As the tax reporting deadline draws near, here is a tutorial with screenshots taken from the online space of the French tax administration. It allows you to understand how to declare your earnings in Bitcoin and cryptocurrencies easily.

This article concerns French tax residents who have carried out at least one taxable transaction in crypto-assets. They are required to calculate and declare the taxable transfers during their annual income tax return. This article will guide you whether it is for paper tax returns or online.

To properly declare your possessions in Bitcoin and cryptocurrencies

Step 1

Once in your online space after providing the personal information, in step 3 “Income and charges”, it should be stipulated that you have Bitcoin and crypto-assets by clicking on “Gain on transfer of securities…” as below:

Revenues - Gains from disposal of crypto-assets

Step 2

You must complete Annex 2086 (which appears on the top left of your screen).

2-A – You will have to enter the number of taxable transfers made in 2019 that you have in your schedule, as in the example below

Annex 2086 to declare Bitcoin and cryptocurrencies

2-B – You will have to enter the amounts of taxable transfers in the boxes like the example below:

To note : The overall capital gain is the sum of all capital gains and losses in 2019. It will be calculated automatically by the impot.gouv.fr site

Be careful, the taxman does not take commas into account, round your numbers (per unit).

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Once finished click on “Next”.

2-C – A summary table is displayed, you only have to validate by clicking on “Next”.

In our example, the sum of taxable transfers in 2019 is less than € 305, the taxable amount is therefore zero.

Stage 3

If you tele-declare via your online space your overall gain or loss is automatically reported in one of the two boxes below. You have nothing to do except check.

2042-C form

If you declare via a paper form, you must mention your overall gain or loss in 2042-C (last line of the form below).

You just have to click on “next” and congratulations, you have declared your taxable transfers in Bitcoin and cryptocurrencies for this year! If you have an account in digital assets abroad you must inform it via the form 3916-BIS. In this case, refer to the following guide: Bitcoin, Taxes and Taxation: Understanding Everything About Reporting Crypto Accounts Abroad.

Waltio, your Crypto and Taxation partner

To learn more about the taxation of cryptocurrencies for a French taxpayer, here is the 18-page white paper (completely free) co-authored with a tax law firm, ORWL Lawyers.

This document allows you to understand in detail how to calculate your taxable capital gain, so as to calmly anticipate any tax audit.

Pierre Morizot co-founder of Waltio, assists French taxpayers in understanding the taxation of Bitcoin

Pierre Morizot, Co-founder of Waltio

Waltio is a tax and accounting assistant for cryptocurrencies. Our mission is to increase the adoption of digital assets (Bitcoin and cryptocurrencies) by simplifying their administrative and regulatory management. In 2019, our tax robot supported more than 400 French taxpayers in their tax management.

Warning : The information provided on this page is for informational purposes only. In no case should they be considered as legal, tax, financial or investment advice. The society Waltio declines any responsibility in the event of information, comment, analysis, opinion, advice and / or recommendation proving to be inaccurate, incomplete or unreliable or leading to losses of investment or others.

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