With the rise of cryptocurrencies, more and more people are interested in these digital assets. What is not known are the tax implications that they can have this type of investment. In fact, the Tax Agency has just released a specific box for this year to declare them. But do not worry! Here, we explain it to you:
How and when are cryptocurrencies taxed?
We must know that there is no specific rule that regulates them. They are governed by the normal treatment of capital gains and losses caused by the transmission of elements.
Namely, you will only have to reflect your investments in the income statement If you have sold them. In addition to this, we have to take into account two conditions: if there are profitsthey must to declare compulsorilyY if there are losses, they must also be included in the declaration. To reflect the cryptocurrencies in the income statement, we must take into account the following method that we are going to explain: the FIFO method.
This method is a way of accounting the profit derived from the sale of investments, when said assets have been purchased at different times. It should be done taking into account the following: the first investments What you buy are the first things you have to take into account when you sell them. If you have understood this, you can consider yourself a crypto statement expert. But we still have several points to explain:
Following the growing relevance of our cryptocurrencies in our society, the Ministry of Finance is paying special attention to themso that the profits derived from their activity are reported correctly in the income tax return.
According to the legislation, the penalty for the debt can reach up to 150%. These infractions will not take place when the obligor regularizes his tax situation without prior or present requirement within the established term. But there will be a surcharge for submitting after the deadline or submitting a complementary one. So you better be attentive to the deadlines!
How to declare your cryptocurrencies for Renta web
For the sale of crypto assets you have to follow these steps:
- Download activity history of your broker.
- Calculate the unit value (in case you don’t have it).
- Calculate the transmission value.
- Calculate the acquisition value.
- Calculate your profit and loss.
- Reflect it correctly in Renta Web.
In the case of swaps, those that, instead of selling, we have exchanged For tax purposes, there has been a equity variation and the cryptocurrency exchange has been defined by the Treasury as a barter. This means that the difference between the price for which you bought it and the price for which it was exchanged must be taxed as capital gain or loss. The steps are the same as those mentioned above, except for a small change: the calculation of the “Transmission Value” and of “Acquisition value” is different.
Calculating all these values is very complex, and could take you many hours and many headaches. But they are necessary to reflect it correctly in your return.
Is it possible to declare your cryptocurrencies automatically?
As you may have seen, the process is quite complicated. As a result of the increase in investment in virtual currencies, the Tax Agency strengthens the supervision of its declarations this year. In addition, very few people know that cryptocurrencies have to be declared and that is why we must pay special attention if we do not want unnecessary penalties. Remember to report every sale and exchange of cryptos.
Thanks to TaxDown, they have created a tool where you can declare your cryptocurrencies automatic And with the push of a couple of buttons. Thus, you will be able to avoid possible sanctions that the Administration may impose on us or, worse yet, lose money. And in the face of such a tedious process, it is better to have the help of professionals who can advise us throughout the process, so that the declaration and your cryptos stop being torture and you can finish it in the blink of an eye.
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