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 these 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 respective impacts.

πŸ’‘ We highly recommend running an initial analysis before labelling one or more β€œWithdrawal” 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

CFD loss

Yes

No

Hack or loss

Yes

No

Other loss

Yes

No

Donation

Yes

No

Payment

Yes

Yes

Fees

Yes

No

Add liquidity

Yes

No

Other withdrawal

Yes

No

Transfer between accounts

Yes

No

Liquidation

Yes

No

Add staking

No

No

Add collateral

No

No

πŸ’‘ Here's an example to understand the chart: You make a cryptocurrency donation. On the withdrawal transaction, you apply the label β€œDonation”: This withdrawal negatively impacts your amount of crypto in stock (in other words, the value of your portfolio decreases) and the transaction is not a taxable transfer.

The use cases for each label are explained in this article.

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

πŸ‘‰ To fully understand the difference between these labels and the old Waltio labels, please follow this article.


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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