📝 Description
Properly labeling your transactions allows you to justify cryptocurrency outflows to the tax authorities and ensures they are accurately factored into your capital gains calculations.
The label you choose directly impacts the calculation of your capital gains and losses. Only use these labels once you fully understand their tax implications.
⚠️ All withdrawals must be categorized in order to consider your tax report reliable.
⚖ Summary table of withdrawal labels
Withdrawal Label | Is it taxable? | Impact on Portfolio Value |
Payment | Yes 💰 | Yes ✅ Decreases ↘️ |
Staking, Collateral Deposit | No ❌ | No ❌ |
Donation / Gift, Fees, Liquidity Addition, Internal Transfer, ICO, NFT, Swap, Hack or Loss, Other Withdrawal/Loss | No ❌ | Yes ✅ Decreases ↘️ |
💡 Example: If you make a donation, applying the Donation label decreases your overall portfolio value, but the transaction is not considered a taxable disposal.
💡 Additional information
👉 To learn how to categorize a transaction in our tool, follow this tutorial.
Regarding unlabeled withdrawals: France is the only jurisdiction that does not treat them as taxable events by default. In all other countries, they are treated as taxable.