Home Waltio: Your crypto tax return in just a few clicks (Tutorial)

Waltio: Your crypto tax return in just a few clicks (Tutorial)

Cryptos
Tax

8 min read

These days, investing in cryptocurrencies also involves filing a tax return that includes your crypto transactions. This requires at least a basic understanding of crypto-asset taxation, but more importantly, it can become a monumental task if you carry out numerous transactions of various kinds.

Today, with the rise of decentralized finance, declaring cryptocurrencies can become a real challenge, despite the new MiCA regulation in Europe . Indeed, the tax regime is sometimes unclear, and there are constant legal ambiguities. Thus, whether for individual or professional traders, declaring transactions can be a real headache.

It is in this context that Waltio offers its services to make things easier for crypto investors. But is there a better tool for reporting crypto transactions?

In just a few years, Waltio has established itself as one of the best crypto-tax software programs on the market. Let's take a closer look at why we recommend using this software.

Declaring crypto transactions, the end of the puzzle?

Those who entered the crypto world before 2019 still remember how difficult it was to complete your tax return regarding cryptocurrencies. In addition to the legal vacuum and the absence of clear regulations, taxpayers had to take stock of their transactions themselves.

Indeed, the reporting system is centered on listing both profits earned and crypto transactions to the tax authorities . As a result, taxpayers quickly find themselves overwhelmed by extremely tedious calculations. The reporting process becomes even more complex due to the existence of multiple platforms , various types of digital assets, inter-platform transfers, yield farming , staking , and so on.

Thus, it turns into a real quagmire. In addition, there are risks in the event of inaccuracies (fines, lengthy procedures before the administration, or even administrative courts). All these reasons mean that over the years, investors are increasingly moving towards services offered by providers such as Waltio.

waltio for crypto impotences — source: Waltio

Fortunately, online software has been developed to help traders and investors properly complete their tax returns. These software such as Waltio allow you to automatically download the transaction balance sheet. The work is infinitely reduced, the errors reduced and the time saved is incomparable with manual production.

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Presentation of the Waltio company

Waltio is a French company specializing in crypto transaction and tax reporting, founded in 2019. It was co-founded by Pierre Morizot , its current CEO, and Benjamin Chevallereau , its Chief Technology Officer (CTO). The company is comprised of an ambitious team whose mission is to simplify the reporting of all taxes related to digital assets (cryptocurrencies, tokens, NFTs , etc.). The tool developed by Waltio was designed to simplify taxpayers' lives and administrative procedures. Indeed, the Waltio software allows anyone to have an automated accounting statement for filing their taxes. No technical skills are required; the software is user-friendly for all types of users.

Its services consist of analyzing in an automated manner a vast set of information necessary for a tax declaration: the taxpayer's crypto platforms, capital gains on cryptocurrencies and other income, as well as the list of transactions and procedures carried out on this or that platform: any opening, closing, modification of account, etc.

As a tax calculation software, Waltio compiles all this data and does a big calculation to determine the tax owed on crypto securities.

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What documents can you obtain with Waltio?

By using Waltio, you will be able to very simply generate 4 useful and essential documents for declaring your crypto taxes. Here are the 4 documents in question:

The tax certificate : This is the file that indicates the taxable amount according to the various calculations of all your transactions.

The annual capital gains declaration annex: This file details all the calculations of the transactions following the format of the tax administration.

Supporting documents: This is a document requested during a tax audit. The file contains all the details of the transactions, with the various labels. This allows the amount declared in the tax certificate to be justified.

Your crypto-asset inventory: This document lists all your crypto-asset holdings. It is not required by the tax authorities but can help you understand your inventory for informational purposes.

How to use Waltio? (Mini-Tutorial)

Waltio has been intelligently designed so that everyone can easily use it. Here are the steps to follow to obtain your tax return simply.

First step: Sign up with your email address and create a password. You can then immediately connect all your exchanges and wallets. Waltio supports a very wide range of crypto services, and you'll almost certainly find all or nearly all of the sites you use. (If you can't find a site you use, simply contact the Waltio team or manually enter the information.)

Once you have found your platform, you can choose between synchronizing your account via an API or uploading your history which you will have uploaded to the site in question. Opting for the API seems to us the simplest way to proceed. Everything will be done automatically and when you do other operations, these will then be updated in the Waltio files.

Generally, all platforms provide a tutorial for using the API with other services.

Once you have entered all the files and API key, click on "My Transactions" to be able to see all your transactions. Now, you will be able to launch the analysis which will be able to generate your final report.

You will see that the file contains all the transactions carried out and you can find all the transactions of your choice using the different categories. You will be able to find a transaction according to the platform, date, token, type of transaction, etc.

? Please note that you can add transactions manually at this point by clicking on “Add transactions”.

You can also modify the taxability of the transactions you wish.

Third step : Analyze your transactions and consider taxable transactions.

You will now be able to analyze your transactions. For example, you will be able to check negative balances. This is an anomaly to correct because it means you have less cryptocurrencies than you had in stock. A transaction is certainly missing in this case where the recorded data is not good (manual certainly).

You can also add labels to your transactions. It will then also be simpler to indicate taxable or non-taxable transactions. For example, donations are not taxable.

Step Four: Consider your taxable transactions.

Here is the formula used to calculate the gross capital gain = transfer price – total acquisition price x (transfer price/total value of the portfolio).

At this stage, the calculation can be more complicated than expected, especially if the data provider CoinGecko hasn't listed the token and the price isn't given. It's also possible that a worthless token or a scam might be identified. In that case, you can classify it as a " worthless token (scam)."

Last step: Download your tax report! There you are, you have reached the end of the process to receive your tax report.

What are Waltio’s packages?

By using Waltio the amount to be paid for the service does not depend on the economic performance of the account. Whether the taxpayer is profitable or in deficit is irrelevant. So, the package you pay will depend on the number of transactions you have made.

The good news is that you can use Waltio for free if you have made less than 50 transactions in total. This can then be a real opportunity for occasional investors and beginners.

For those who exceed 10,000 transactions per year, the package is €179 per year. This remains a suitable price for this type of profile.

There is also a higher plan with unlimited transactions, which has a variable price. In this case, these are generally companies and you must contact customer service directly.

It should be noted that all packages have the same components, namely, the calculation of the amount due under the Flat Tax regime, pre-filled forms 2086 and 3916, the consideration of complex decentralized finance operations (staking, Yield farming , etc.), portfolio monitoring, etc.

Even better, Waltio has developed a tax strategy tool to help optimize your taxes. This makes it one of the most comprehensive tools on the crypto tax software market . The software also includes NFT taxation , allowing you to declare all your crypto assets together.

What are the advantages of using Waltio?

Apart from some disadvantages linked to Waltio services, the company is known to be very fast, with affordable prices, reassuring and user-friendly. In fact, Waltio saves several hours, even several dozen hours of reporting.

You should know that an imperfect declaration can cost you dearly during a tax adjustment. It is preferable to use software like Waltio or consult a specialized tax lawyer, in order to avoid paying fines. These can be much heavier and more expensive than a subscription to Waltio.

The company charges fees that remain affordable for the vast majority of investors. It is secure and offers excellent customer feedback. Waltio wants to be reassuring by sparing its clients from a tax and legal hell.

In addition, Waltio is suitable for almost all recognized original platforms, but also income from stacking, lending, etc. for which taxation is particularly complex.

What are the disadvantages of Waltio?

Although Waltio is rapidly expanding its scope of application, its software does not yet take into account all existing protocols or exchange platforms. This includes everything relating to decentralized finance in development. When the software detects income from such an unrecognized source, an error message is displayed calling on the trader to make their own modifications by hand.

Certainly, Waltio guides the trader perfectly in these steps. But these are the responsibility of the trader himself, if he uses decentralized services described as “exotic”.

Last word

Amidst this new crypto tax system, Waltio comes to the rescue of cryptocurrency traders. This French-made tax tool is particularly useful. It assists novice traders and helps secure a taxpayer's tax situation. Furthermore, it optimizes their tax liability by providing a clearer overview of their transactions. It is therefore absolutely essential for experienced or regular traders, as well as for investors who have realized capital gains during a year with low trading activity.

For traders who have made fewer trades, this is a clear answer to their concerns. It helps those who lack the time and confidence to carry out fairly complex calculations of capital gains on cryptocurrencies. The clarity of this tool makes the experience pleasant and builds customer loyalty from the first statement.

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Note : No financial advice is given in this article or any other article on ZoneBitcoin. This information is entirely your own judgment. Be responsible for your investments and only invest an amount you are prepared to lose.

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