Guellord MbusaNowadays, invest in cryptocurrencys involves also completing a tax return including your crypto transactions. This requires knowing minima the taxation specific to crypto-assets but above all, it can become a titanic task if you carry out numerous operations of various natures.
Today, with the rise of decentralized finance, declaring your cryptos can become a real obstacle course despite the new MiCA regulation in Europe. Indeed, the tax regime is sometimes imprecise and there are constant legal uncertainties. So, whether for individual or professional traders, reporting your transactions can be a real headache.
It is in this context that the company 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 among the best crypto tax software of 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 declaration system is centered on the enumeration to the tax authorities of both the profits made and the crypto transactions carried out. As a result, taxpayers very quickly find themselves completely overwhelmed by making extremely tedious calculations. The declaration becomes more complex due to the fact that there are several such as internal , several types of digital assets, cross-platform transfers, Yield farming, stacking, etc.
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.
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.
Presentation of the Waltio company
Waltio is a French company specializing in the reporting of transactions and crypto taxes created in 2019. It was co-founded by Pierre Morizot, its current CEO, and Benjamin Chevallereau, who is the Technical Director (CTO). The company is made up of an ambitious team whose mission is to facilitate the declaration of all taxes relating to digital assets (cryptocurrencies, tokens, NFT…). The tool developed by Waltio was designed to simplify the lives of taxpayers in their administrative procedures. In fact, Waltio software allows anyone to have an automated accounting balance sheet to declare their taxes. No technical skills are required, the software is easy to use, for all types of profiles.
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.
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 which indicates the taxable amount according to the different calculations of all your transactions.
👉 The annual capital gains declaration annex: This file details all the calculations of the operations following the tax administration format.
👉 The supporting documents: This is a document that is requested during a tax audit. The file contains all the details of the transactions, with the different labels. This then makes it possible to justify the amount declared in the tax certificate.
👉 The inventory of your crypto-assets: It is a document that lists all your crypto-asset holdings. It is not requested by the tax administration but can help you know your inventory for information 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 stage : Register with your email address and provide a password. Immediately, you can connect all the exchange platforms as well as the different wallets you have. Waltio supports a very large catalog of crypto services and you will most certainly find all or almost all of the sites you use. (If you can't find a site you use, simply contact the Waltio team or manually fill in the data).
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 stage 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 point, the calculation can be more complicated than expected especially if the CoinGecko data provider has not listed the token and the price is not given. It can also happen that a worthless token or a scam is identified. In this case, you can classify it in the " worthless tokens (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.
You should know that all packages have the same components, namely, the calculation of the imposing amount under the Flat Tax regime, the pre-filled 2086 and 3916 forms, the taking into account of complex decentralized finance operations (staking , Yield farming, etc), portfolio monitoring, etc.
Better yet, Waltio has developed a tax strategy tool to optimize your taxes. This makes it one of the most comprehensive tools on the market. crypto software Taxes. The taxation of NFTs is also included in the software. This then allows you to declare all your crypto-assets as a whole.
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
Amid this new crypto tax system, Waltio comes to the rescue of cryptocurrency traders. This tax tool “Made in France” is therefore particularly useful. It helps novice traders and helps secure a taxpayer's tax situation. In addition, it also allows you to optimize your taxes by giving you a clearer overview of your transactions. It is therefore absolutely essential for seasoned or accustomed traders. But also for investors who withdrew capital gains during a year when they made few trades.
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.
See as well
- What are the risks of not declaring your crypto winnings for taxes?
- What is the applicable taxation for NFTs in 2023?
- The 5 best software to file your crypto taxes
- MiCA regulation and what changes for crypto holders
Please note: : No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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