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how to declare your cryptocurrencies?

Crypto investors do not escape taxes, but how do you properly declare your bitcoin earnings? We take stock.

More and more French men and women are investing in bitcoin, ethereum and other non-fiduciary amusements. However, virtual currencies are not exempt from certain rules. On your income tax form, it is therefore necessary to declare them, otherwise you will suffer a painful tax adjustment.

Where to declare my crypto income?

On a classic tax form, income related to cryptocurrencies must be indicated on box 3AN (or on box 3BN in the event of a deficit). Online, just check the box “capital gain and miscellaneous gains” in step 3 of the declaration to see the form appear. In paper format, you will need to complete the CERFA 2042C. Finally, it is necessary to complete the CERFA 2086 form (or select Attached declarations online), in order to detail to the tax authorities where the assets you gained or lost came from during the year.

CERFA crypto tax
© JDG

Once on the 2086 form, all you have to do is count the number of transfers (sales) that you have made during the year. You will then have to detail for each operation, the date of sale, the transfer price and the acquisition price. Online, the process is quite simple since the platform will only calculate your gains or losses, then report them in boxes 3AN and 3BN of your main declaration. It is also possible to deduct any transfer costs if you have had any. Please note, if you invest in a foreign platform, and you have a bank account outside France, it is also necessary to complete the CERFA 3916 form, even if you have not carried out any transaction.

CERFA crypto taxes details
© JDG

Simplify procedures from 2023

Still in its infancy, the French cryptocurrency market is only exempt from tax if the capital gains realized over the year do not exceed €305. Beyond that, an individual must submit to the single flat-rate levy (PFU) equivalent to 30% of his earnings (12.8% tax and 17.2% social security contributions). For professionals, this tax is doubled, the earnings then being taxable as industrial and commercial profits (BIC). A major problem believes the government, since this professional status actually concerns many individuals who are only actively managing their crypto portfolio.

Aware that the tax formalities around cryptocurrencies are too complex, the government will change the rules of the game from 2023, with the application of article 79 of the finance law for 2022. For private investors, it is the PFU which will always apply, regardless of the volume and amount of transactions carried out. Professionals, meanwhile, will now be taxable on non-commercial profits (BNC), and no longer on BIC.

Regarding mining, on the other hand, the government specifies that it will systematically come under the non-commercial profits (BNC) regime, within the framework of article 92 of the general tax code.

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