This is what you should pay attention to

The year 2023 is just around the corner. This doesn’t just mean champagne, fireworks, and a heavy hangover the next day. This also means that cryptocurrency investors should pay attention. According to the tax authorities, January 1 is the reference date for someone’s assets, also from encryption investors. For the uninitiated, making a tax return as a cryptocurrency investor can be cumbersome and somewhat unclear. This is why this article will briefly and forcefully discuss what you should pay close attention to anyway.

Cryptocurrency tax return

Your crypto assets must be disclosed to the tax authorities, like any other part of your assets. The value of these assets, as any cryptocurrency investor has 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 particular point in time. That moment is 00:00 on January 1st.

In order not to be confused in a few months and not make things too difficult for yourself in the future, so it is wise to record the value of your portfolio at that time. This can be done, for example, by simply taking a screenshot of your wallet. This way you don’t have to go back to find out the value of all the cryptocurrencies together on January 1st, which can be quite a tedious task.

For more detailed information on how the tax system works for funds and cryptocurrencies, please visit our website Bitcoin tax return page.

Cryptocurrency is part of your wealth!

There are also still a lot of cryptocurrency investors who believe that it is not necessary to include cryptocurrencies on your tax return. For the simple reason that they are part of your wealth. I forgot you bitcoin (BTC) so it is not advertised. Failure to do so may lead to problems such as fines in the future.

the blockchain Some who want to stay under the radar of the tax authorities give a certain sense of security and anonymity. Where it was possible to keep your crypto assets hidden a few years ago, that is not the case at all today. Tax authorities have resources to track every transaction on the blockchain. So don’t take any chances.