Tax return: how to calculate my cryptocurrency gain

Since April 7, you can indicate on your income received during the past year. Among them, enter all your exchange rate gains in cryptocurrencies as soon as they have been pulled out of your digital wallet and converted into euros. These gains are subject to a single fixed tax (PFU) called “flat tax”, which applies globally to capital income and whose rate is 30% in total. It includes 17.2% social security contributions and 12.8% income tax.

However, there is a tax deduction of 305 euros. In other words, the total capital gain is taxable only if the total gains in cryptocurrencies recovered last year are greater than this amount. Among the transactions to be declared, do not forget about the purchase of goods or services made in cryptocurrencies, such as the purchase of a Tesla car or an Amazon gift card in bitcoins. These transactions are considered as the disposal of digital assets. And the capital gains associated with these divestitures must be disclosed.

On the other hand, exchanges between digital assets, such as bitcoin for ether, do not generate taxation and do not need to be declared by non-professional investors.

For statements on paper, the deadline is approaching: it is May 19th. But you benefit from a little more time if you declare your income online: until May 24, if you live in wards from 01 to 19, until May 31 for wards 20 to 54 and until June 8 for those ranging from 55 to 976.

A dedicated form

Your capital gains, as well as your losses in cryptocurrencies, must be stated in form 2086. You must also state on the date of each transfer the total value of your digital portfolio, as well as the price of acquiring the portfolio, ie. the amount that was originally invested to acquire your cryptocurrencies.

In order not to miss any information and to be able to fill in the boxes in your statement correctly, “it is therefore better to have a regular follow-up on your portfolio of crypto assets”, warns Pierre Morizot, co-founder of Waltio, a declaration assistant taxing his crypto income . The boxes “transfer costs” and “payment received or paid” in form 2086 must be ignored: you have nothing to enter there.

Once all your transactions have been entered, the amount of the total capital loss or capital gain obtained over a year is automatically generated in the 3AN box for a capital gain or 3BN in the event of a capital loss. This total capital gain or loss is then filled in automatically in the ordinary tax return form (form 2042) online. It is therefore advisable to make your statement electronically.

A little technical calculation

“Each capital gain, for each sale of cryptocurrencies, is calculated in relation to the total value of the portfolio of digital assets. The idea is to tax a fraction of the total capital gain in the portfolio over a year, ”explains Alexandre Lourimi, tax lawyer at ORWL, a company specializing in the digital economy.

Here is a concrete example to better understand this calculation: You bought 10,000 euros in cryptocurrency, and six months later, your digital wallet is worth 100,000 euros. The potential capital gain then reaches 90,000 euros (100,000 – 10,000). If you decide to sell 10,000 euros in cryptocurrency, this will represent 10% of your portfolio at the time of sale. The taxable capital gain will therefore constitute 10% of the total capital gain on your portfolio, which means 10% of 90,000 euros. It is a capital gain of 9,000 euros taxable at 30%.

The paper declaration provides only 5 boxes for 5 transfers (sales) of cryptocurrencies during the year 2021, where the online declaration shows 20. If you exceed this number of transfers, it may be wise to attach a table to the PDF format on the chatbot of the impots.gouv website. fr, which provides information on all the operations you performed in 2021.

At the very end of the statement, the “explicit mention” box will allow you to indicate that you did not have enough funds to disclose all of your capital gains last year. Enough to show your good faith to the IRS. And avoid the sanctions provided for in case of deliberate omissions on the part of the taxpayer.

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