Hi there πŸ‘‹

Properly labelling your transactions allows you to comply with the tax authorities' requirement which request to justify any outgoing cryptocurrency flows. It also ensures that theses outflows are properly taken into account in the calculation of capital gains.

The choice of label impacts deeply the calculation of your capital gains or losses. Only use labels if you are confident about theirs respectives impacts.

πŸ’‘ We highly recommend to run an initial analysis before labelling one or more "Withdrawal" transactions because not all withdrawals should be labelled. Only withdrawals with warnings must be.

πŸ‘‰ To label a transaction in our tool, follow this tutorial.

πŸ‘‰ To choose the right label from your withdrawals to label, follow this tutorial.

Here is a summary table of the labels and their fiscal impact in our tool:

Label

Negative Impacts on your crypto inventory

Taxable transaction

Donation

Yes

No

Gain/Loss

Yes

No

Internal operation

No

No

External operation

Yes

No

Hack / Loss

Yes

No

Payment

Yes

Yes

πŸ’‘ To understand the difference between an external and internal transaction, please have a look to the article we just wrote.

πŸ‘‰ Here's how to add withdrawals from platforms not supported by Waltio.


If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! πŸ’¬

The Waltio team

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