It’s March 1st, which means you can file your taxes starting today. An important day and it is crucial to carry out this process properly. If you own crypto, there are a number of additional things you should pay attention to. In this article we list a number of useful tips.
What to Consider When Filing Your Cryptocurrency Tax Return
Like any part of your wealth, you must also report your crypto assets to the tax authorities. As you know and have undoubtedly experienced, the value of your crypto portfolio can fluctuate significantly within a year. For this reason, the tax office will check the value of your crypto on January 1st, 00:00 a.m. 2023. The value of your crypto at this point is therefore taxable and is part of the assets in box 3.
Therefore, it is important to know how much your portfolio was worth at that point. Hopefully you took a screenshot of your wallet on January 1st. If not, you may be able to use the rates to calculate how much your cryptocurrency was worth on January 1st.
Crypto is an industry that is changing rapidly, and regulations are changing too. Therefore, make sure that you are always informed about the tax regulations. These regulations can vary significantly depending on the country. So if you live abroad, the rules may differ from those in the Netherlands.
Tips and Tricks
As you know, the declaration process can be quite a job. You can therefore always think about getting help with this. There are numerous tax advisors or auditors who have experience with crypto. This can save you a lot of time and headaches.
Please note that you are dealing with a reliable party or platform. Caution is particularly important when it comes to your crypto assets and crypto information. The same applies if you want to use crypto tax software.
As already mentioned, you can file your tax return starting today. But don’t do this too hastily. Finally, you have until July 14th to do this calmly and precisely. So take your time and don’t make unnecessary mistakes. Mistakes on your tax return can result in unnecessary fines.
You might think, “I keep my crypto hidden, they won’t find out anyway.” But it’s not that easy these days. Cryptocurrencies are becoming increasingly popular and tax authorities are also aware of it. If the tax authorities want to find out something, they have the resources to do so. So don’t take any risks and file your tax return properly.
Tax returns are a complicated process. That’s why we also have a comprehensive “Bitcoin and tax return” page where you can read everything at your leisure.