2023 is just around the corner. That doesn’t just mean champagne, fireworks, and a heavy hangover the next day. It also means that cryptocurrency investors should pay attention. According to the tax authorities, January 1 is the reference date of someone’s assets, even from crypto investors. For starters, filing tax returns as a cryptocurrency investor can be a bit cumbersome and confusing. That is why this article will briefly and forcefully discuss what you should pay close attention to in any case.
Cryptographic tax return
Your crypto assets must be declared to tax authorities, like any other part of your assets. The value of these assets, as any crypto investor has no doubt noticed over the past year, can fluctuate wildly from day to day. However, the tax authorities only look at the value of your assets at a specific point in time. That time is 00:00 on January 1st.
In order not to be at a loss in a few months and not make things too difficult for your future self, it is therefore wise to record the value of your portfolio at that time. This can be done, for example, by simply taking a screenshot of your wallets. That way you won’t have to go back to find out what all your cryptocurrencies were worth together on January 1st, which can be quite tedious work.
For more detailed information on how the tax system of boxes and cryptocurrencies works, please visit our bitcoin tax return page
Cryptocurrencies are part of your wealth!
Also, there are still many cryptocurrency investors who think it is not mandatory to include cryptocurrencies in your tax return. It’s for the simple reason that it’s part of your wealth. I forget you bitcoins (BTC) therefore not to be declared. Otherwise, problems such as fines may occur in the future.
From blockchain it gives a certain sense of security and anonymity to those who want to stay under the tax authorities’ radar. Where it might have been possible to keep your crypto assets hidden a few years ago, this is absolutely not the case today. Tax authorities have resources to track every transaction on the blockchain. So don’t take any chances.
