How do I declare my foreign cryptocurrency platforms (Kraken, Coinbase, etc.)?
Using form 3916-BIS. One form must be completed per platform.
How do I declare my cryptocurrency gains or losses?
Using form 2086, provided you do fall under the regime for individuals (non-professionals).
The total capital gains or losses must then be carried over to line 3AN of form 2042 C in the case of a capital gain, or to line 3BN of form 2042C in the case of a capital loss.
Which transactions must be reported on this form?
Only trades of crypto against fiat currency, goods or services. Example: sale of 1 BTC for €25,000.
Exchanges between cryptocurrencies do not need to be reported. Example: exchange of 1 BTC for 15 ETH.
What is meant by the overall value of the portfolio?
The market value of the entire portfolio at the time of the disposal.
What is meant by a balancing payment (soulte)?
The balancing payment has little application in practice. An example would be the exchange of 1 BTC for 14 ETH + €1,000. The €1,000 represents the balancing payment. In practice, things do not work like that, so the balancing payment referred to in the form is extremely rare in practice.
Can I deduct platform fees?
Yes, there is a box provided for this in the form.
Can cryptocurrency losses be offset against gains in future years?
No, a year’s losses are “lost” for tax purposes; they cannot be carried forward. Example: a loss of €5,000 in 2019 cannot be offset against a gain of €20,000 in 2020. The taxable gain for 2020 will remain €20,000; it will not be reduced to €15,000.
Where can I find form 2086 to declare my cryptocurrency gains/losses?
When you file your return online via your impot.gouv account, go to step 3, click on “DECLARATIONS ANNEXES” (supplementary returns) and select form 2086.
Where can I find form 3916-BIS to declare my foreign platforms?
When you file your return online via your impot.gouv account, go to step 3, click on “DECLARATIONS ANNEXES” (supplementary returns) and select form 3916-BIS.
What should I do if the tax authorities raise questions or even carry out a tax audit after my return has been filed?
You will need to be able to explain very precisely all the figures entered on form 2086. Keep your working documents carefully and, of course, your trade histories. Please note that you will need to be able to explain all the figures entered on form 2086 (your methods, calculations, values used, tracking of the portfolio’s composition over time, etc.). Simply sending the file of your “raw” trade histories without explanations would probably be regarded by the tax authorities as unusable and therefore not sufficient to justify your form 2086. Reassessments could therefore, in principle, possibly be incurred.
