Bit2Me has rolled out a free tool designed to simplify how users report cryptocurrency movements under the 2022 Income Statement, a deadline that stays fixed at June 30. This update is communicated by the platform in a formal disclosure, underscoring the service’s no-cost nature for customers.
The offering, branded as Bit2Me Tax, generates a comprehensive financial report. It includes a summary page, a clear view of the portfolio’s securities and any changes within it, transaction and statement summaries, explanatory notes, and guided assistance to complete the income tax form. The company stresses that this suite of features comes at zero charge to the user.
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Currently available in Spain, the service is poised to roll out in other regions. The company notes that users in Austria, Germany, the Czech Republic and France will soon be able to download the tax report in accordance with local regulations and instructions for filling in the tax boxes.
In addition, Bit2Me will offer a First In First Out (FIFO) reporting option to serve every platform user, regardless of country of residence. This feature will enable users to account for all transactions and to fulfill tax obligations from any jurisdiction.
Beyond the tax report, Bit2Me Tax users can access support from qualified experts who can clarify doubts and help present the Income Statement clearly.
For now, the new service works with Bit2Me platform user accounts; however, the plan is to achieve interoperability with other platforms in upcoming fiscal years to broaden the service’s functionality.
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When should cryptocurrencies be declared?
In responses to inquiries posed to tax authorities, users are generally required to report when there is an exchange between different cryptocurrencies. A transfer between wallets counts as a taxable event even if the funds have not been converted to fiat money.
As Bit2Me explains with a practical example: if one purchases Bitcoin for 10,000 euros and later trades it entirely for 100 ETH, the Bitcoin is no longer valued at 10,000 euros and only the gain is taxable. If the exchange yields a higher value, the resulting capital gain should be declared on the Income Statement.
If a user only holds cryptocurrencies without any movements during the year, or if there were no buy-sell actions, the holdings do not need to appear on the Income Statement.
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When 2022 saw sales of cryptocurrencies and a corresponding increase in equity, those transactions needed to be included in the Income Statement. The platform clarifies that such movements are accounted for whenever the sale price exceeds the purchase price, creating a capital gain to be reported.