The taxation of cryptocurrencies in France is a complex subject, particularly with regard to the treatment of capital losses.

With the entry into force of the MiCA (Markets in Crypto-Assets) regulation, it is essential to understand how to declare and optimize these losses within the framework of French tax.

1. Understanding Cryptocurrency Losses

A capital loss occurs when the sale value of a digital asset is less than its acquisition price.

In other words, if you sell a cryptocurrency for less than you bought it for, you make a loss.

Example :

• Purchase: 1 Bitcoin (BTC) at €40,000.

• Sale: 1 BTC at €30,000.

• Realized capital loss: €40,000 - €30,000 = €10,000.


2. Tax Regime for Capital Losses in France

Since 2019, capital losses made on digital assets are deductible from capital gains of the same nature made in the same year.

If, after compensation, the balance is negative, it can be carried forward over the following ten years to be charged against future capital gains.

Example :

• Year N:

• Plus-values : 5 000 €.

• Capital losses: €8,000.

• Balance: -€3000 (carryover to following years).

• Year N+1:

• Plus-values : 4 000 €.

• Capital losses carried forward: €3,000.

• Taxable capital gain: €4,000 - €3,000 = €1,000.


3. Procedure for Reporting Losses

a. Calculation of Capital Losses

The calculation of capital losses is carried out by determining the difference between the sale price and the acquisition price of the digital asset.

It is crucial to keep all purchase and sale receipts to support these calculations.

b. Completing Tax Forms

• Form 2086: Declaration of capital gains or losses on sales of digital assets.

• Indicate each transaction, specifying the dates, amounts, purchase and sale prices.

• The form automatically calculates the amount of capital gains or losses.

• Form 2042-C:

• Report the total of capital gains in box 3AN and capital losses in box 3BN.

5. Practical Tips for Optimizing the Management of Losses

• Accurate Record Keeping: Keep all transaction records, invoices and supporting documents relating to your cryptocurrency transactions.

• Consult a Professional: Call on a specialized tax advisor to optimize your situation and ensure full compliance with current legislation.

• Use of Tracking Tools: Consider using dedicated software to track your transactions and automatically calculate your gains and losses.

Conclusion

Managing capital losses in cryptocurrencies is an essential aspect of taxation for investors in France.

A thorough understanding of reporting obligations and the opportunities offered by loss carryforwards can lead to significant tax optimization.

Stay informed of regulatory developments, particularly with the application of the MiCA regulation, to ensure continuous and effective compliance.

Sources :

1. Impots.gouv.fr

• Official tax website in France, particularly for tax forms and guides.

2. CMS Law

• Detailed article on the tax regime for digital assets and the management of capital gains/losses.

3. Journal du Coin

• Practical guide on the taxation of cryptocurrencies in France.

4. CoinAcademy

• Tutorials and resources for completing form 2086 and declaring your crypto-assets.

5. European Parliament - MiCA Regulation

• Official documentation on MiCA regulations.

6. Economie.gouv.fr

• Information on tax regulations and obligations of cryptocurrency investors.#France
#MiCA