Hi there 👋
Our tool supports digital asset tax returns for the years 2019, 2020 and 2021, but does not prepare documents for the year 2018. The tax system has changed significantly since then. That being said, there is a way to identify taxable dispositions and their purchase price! So if you want to regularize your situation, here is a tutorial to do so.
💡 If you want to analyze the years 2019, 2020 and 2021, here is a tutorial.
Step 1: Identify taxable transactions in 2018.
Crypto → euros transactions are not automatically considered as taxable transactions, because the tax regime was not the same at the time.
Therefore, you will need to identify your taxable transactions manually with your general ledger:
A- Open the ledger provided by Waltio (https://tax.waltio.co/documents)
B- Filter in column K on the amount of the transaction, higher than €5000.
C- Filter in column K, on 2018 operations
Great! You've identified all the taxable dispositions made in 2018. The next step is to identify the acquisition price of these taxable dispositions in order to calculate the capital gain.
Step 2: Recover the purchase price of these taxable transfers
D - Open the stock card
E- For each cryptocurrency concerned by a taxable transfer and for each taxable transfer, copy and paste in column A the date of the transaction (then delete in the cell the seconds so that the filter is set up).
F- In column G, copy and paste the CUMP (purchase price of the sold cryptocurrency) in the general ledger to know for example in column P
Total net acquisition price in Euros
Step 3 - Calculate capital gains
G- In column 9
Value only fill in the quantity of the crypto-asset sold.
H- In the box Price, divide the
Amount of the transaction by the
Quantity (Column value)
I- Then in column L "Amount of capital gain" apply the formula
(Column 10 - Column 15)*column 9 for each taxable transfer identified in 2018
That is: (Price (Unit selling price) - Total Acquisition Price (Unit purchase cost)) * Value (quantity sold)
To find out your capital gain for the year 2018, you should add up the capital gains only (cannot deduct capital losses).
This gives you the total gain or loss.
💡 Nevertheless, our tax lawyer specialized in digital assets, Maître Alexandre Lourimi, Associate Lawyer at ORWL Avocats, can accompany you on this subject.
💡 We would still like to point out that it is likely that the French tax administration will be less intransigent regarding "small portfolios" before 2019, as there was no specific tax regime for digital assets, especially if there is a willingness on the part of the taxpayer to be compliant with the French tax legislation from 2019.
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