Bitcoin and tax returns: what you need to know

You must report Bitcoin and other cryptocurrencies on your tax return if you own them. How does that work?

Capital belongs to box 3 in taxes. Owning cryptocurrency also falls under having assets. And that means you have to neatly declare how much you own, however little that may be. It is definitely recommended to do this. There is a fine waiting if you do not give up anything and do own crypto. The Tax and Customs Administration can still make a case of this after years. Prevent misery afterwards and report your Bitcoin to the tax authorities when you file a tax return!

The website of the Tax Authorities describes the following when it comes to private crypto owners:

Cryptocurrencies are part of your assets in box 3. You state the market value of your cryptocurrencies on 1 January (reference date). You use the exchange rate on the reference date of the exchange platform used.

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The reference date is therefore January 1. It is best to stick to 1 January 00:00. Chances are you were busy corking a big bottle of champagne at that time. Never mind, we’re totally right. Fortunately, you can easily find out what the price was at that time. Via CoinMarketCap you can retrieve the historical data of the cryptocurrency you own. Simply look up the price of January 1, 00:00 Dutch time. Then calculate what your wallet is worth based on the price at that moment. Can it be easier? Yes, but that’s one for next year. Next year, take a screenshot of your portfolio at exactly 00:00 on January 1, 2023.

Bitcoin tax return: Attention!

You will soon be taxing 2021. If you bought crypto for the first time halfway through last year, you will not have to deal with the tax authorities. After all, you did not own any crypto on January 1, 2021. Next year it will be your turn, if you are going to tax 2022 and you did have crypto on January 1, so yesterday.