Hi there 👋
Properly labelling your transactions allows you to comply with the tax authorities' requirement, which request to justify any outgoing cryptocurrency flows. It also ensures that these outflows are properly taken into account in the calculation of capital gains.
The choice of label impacts deeply the calculation of your capital gains or losses. Only use labels if you are confident about theirs respective impacts.
💡 We highly recommend running an initial analysis before labelling one or more “Withdrawal” transactions because not all withdrawals should be labelled. Only withdrawals with warnings must be.
👉 To label a transaction in our tool, follow this tutorial.
👉 To choose the right label from your withdrawals to label, follow this tutorial.
🪧 Here is a summary table of the labels and their fiscal impact in our tool:
Withdrawal label | Does the label make the transaction taxable? | Does the labelled transaction impact the value of the wallet? |
Payment | Yes 💰 | Yes ✅ Reduces ↘️ |
Add staking Add collateral | No ❌ | No ❌ |
CFD loss Hack or loss Other loss Donation Fees Add liquidity Other withdrawal Transfer between accounts Liquidation ICO NFT Swap |
No ❌ |
Yes ✅ Reduces ↘️ |
💡 Here's an example to understand the chart: You make a cryptocurrency donation. On the withdrawal transaction, you apply the label “Donation”: This withdrawal decreases the value of your portfolio and the transaction is not a taxable transfer.
The use cases for each label are explained in this article 👈
👉 To fully understand the difference between these labels and the old Waltio labels, please follow this article.
If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! 💬
The Waltio Team