Cryptos and Taxes: Mistakes to Absolutely Avoid

Introduction

With the rapid rise of cryptocurrencies in recent years, more and more French people are interested in this innovative and potentially lucrative market. However, the taxation related to cryptos remains complex and prone to many errors, which can lead to heavy tax adjustments. Whether you are an occasional investor or an experienced trader, it is essential to fully understand your tax obligations to avoid common pitfalls. In this article, TradeXora guides you through the main errors to absolutely avoid regarding cryptos and taxes in France.

1. Neglecting the declaration of capital gains

The first common mistake is not declaring the capital gains realized from the sale of cryptocurrencies. In France, gains from the disposal of cryptos by individuals are subject to income tax in the category of capital gains on digital assets. Since 2019, they are taxed at the flat tax rate (PFU) of 30% (12.8% income tax + 17.2% social contributions).

However, many users mistakenly believe that cryptocurrencies are not taxed or that their small gains do not require declaration. In reality, any gain, even minimal, must be declared. Failure to comply with this obligation can result in fines and penalties.

2. Forgetting to keep a precise transaction history

Crypto taxation relies on an accurate calculation of capital gains, which requires rigorous tracking of each operation: purchase, sale, exchange, conversion, etc. A common mistake is not keeping a complete and detailed record of transactions, which complicates declaration and can lead to calculation errors.

It is recommended to use specialized tools or spreadsheets to record:

• Purchase and sale dates
• Acquisition and disposal price in euros
• L