Hi there 👋
The digital asset capital gains tax regime implemented on January 1, 2019, changed the method for calculating the purchase price of disposed digital assets.
According to the administration, in the case of disposals made prior to January 1, 2019, the total acquisition price declared on the occasion of the first disposal made after that date should not include the acquisition prices :
Mentioned in capital gains tax returns reported under the law in effect before January 1, 2019;
Not having been declared, in accordance with the law in force before January 1, 2019 (transfers whose transfer price was less than €5,000 and having benefited from the exemption provided for in 2° of II of Article 150 UA of the CGI for example) ;
Not having been found in violation of existing law prior to January 1, 2019.
For the first taxable disposition after January 1, 2019, the acquisition prices of prior dispositions should not be included in the ATP. This is equivalent to saying that only the acquisition price of the cryptos in inventory as of January 1, 2019, should be included since the acquisition price of the disposed cryptos does not have to be included in the ATP.
For this, the most relevant method seems to us to calculate the WACM (Weighted Average Cost Method) of the cryptos in stock at this date. For crypto-crypto exchanges, the acquisition price is equal to the value in euros of the exchanged crypto.
To determine the total acquisition price of the portfolio as of January 1, 2019, the proceeds of the cryptos in inventory should be added to their WACM.
In practice, to repeat the calculation manually, you should, using your stock sheet, calculate and multiply the WACM of the last transaction of 2018 by the quantity in stock on that date of each of your digital assets.
💡 To value the price of the cryptos you have in your wallet, we follow the standard of portfolio valuation: we rely on a daily average of the price retrieved from the different aggregators we use.
If you bought a cryptocurrency with a fiat currency or a stablecoin, we will use the conversion of the one against the other.
Ex: I buy 1 ETH at 2000 EUR on June 15. My ETH portfolio will be valued by one more 2000 EUR.
The gross Total Acquisition Price (TAG) is the sum of all your cryptocurrency purchases with fiat (€).
The net ATP is the gross ATP from which we deduct the fraction of capital initially used.
The fraction of capital is the portion of your total invested amount that you have sold. In other words, it represents the portion of your investment that was originally used in the disposition transactions. A disposition transaction is also called a “cash-out” or “taxable transaction”.
Once you deduct the capital fractions from the Total Gross Acquisition Price, you get the Total Net Acquisition Price (column P of the “Bookpink Ledger”).
In the case of transactions prior to January 1, 2019, we have written an article on this topic.
To learn more about this, we encourage you to read our white paper.
If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! 💬
The Waltio team