Hello 👋

The tax system requires all your transactions since the very first transaction carried out on your accounts to calculate your taxable capital gains.

In fact, to calculate the sum of the capital gains or losses realised per year, we need to individually calculate the capital gains or losses for each taxable transaction carried out that year. To calculate your capital gains or losses, we also need to identify the purchase cost of the cryptocurrencies sold, otherwise known as the Total Purchase Price.

To calculate the purchase price, we need to trace all your movements.

This allows us to understand the purchase price, the quantity and your balance at the time of sale. In this way, we need to know all the buying and selling transactions carried out for each cryptocurrency sold.

For example, if you bought 1 Bitcoin in 2017, exchanged it in 2020 for 50 ETH and then sold it in 2021, we need to know the purchase price in 2017 and track the exchange of BTC for ETH to calculate your taxable capital gain in 2021.

So, every year, to calculate the capital gains or losses for a given year, all the transactions in your portfolio, from the very first, are needed.

Waltio therefore incurs data reading and analysis costs every year to read past transactions, and as a result we have adjusted our average price downwards.

For your information, we have shared this complexity of putting tax obligations into practice with parliamentarians enthusiastic about cryptocurrencies.

If you have any further questions, don't hesitate to contact us via the Chatbot just down the right-hand side of your screen! 💬
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The Waltio team