IRPF 2024: View the new tax rules for cryptocurrencies

Another year is coming to an end and as always, the Declarando Bitcoin website provided a quick review and tips for you, the investor, to prepare for the next income tax.

This year we had the rise of Bitcoin, one of the top investments that rose and skyrocketed the most. And in view of the rise, we also had the RFB comment on the crypto market several times, with two consultation solutions, the announcement of the creation of CARF and the use of artificial intelligence to monitor crypto asset transactions.

We also had the CPI on financial pyramids involving crypto assets, the definition of the Central Bank as the supervisory authority for virtual asset service providers, and the sanction of Law No. 14,754, which limits the taxation of crypto assets abroad from January 1, 2024 changes.

How to prepare for IRPF 2024

It is important to emphasize that the new rules will not affect the 2024 income tax return, as this return corresponds to the base year 2023. For more information about the new law, see “35 questions and answers about law No. 14,754 that changes the taxation of crypto assets abroad”.

Checklist for IRPF 2024:

The most important data of all is your BALANCE SHEET of crypto assets as of December 31st (in quantity, both in coins and reais).

It is worth remembering that the cost of your cryptocurrencies is not based on the price on the last day of the year, but rather on the cost of acquiring the assets, and this is the value that will be indicated as assets and rights in income. tax returns.

We also recommend that you issue ANNUAL REPORTS of all exchanges with which you have transacted.

Some exchanges may split transactions into different statements. If this is the case with the broker you use, separate files with transactions, deposits and withdrawals of cryptocurrency, the futures market, in short, everything that took place with the broker. It can be in CSV or PDF format, or even in a simple printout, the important thing is that you have it!

Also try to make printouts of evidence of all actions performed outside the fair. Keep copies of deposits and withdrawals at all addresses you have transferred or withdrawn money from. Keep in mind that many blockchains are public and immutable, so if you operate outside of exchanges, you can always check the transactions made and look for the data retroactively, if you haven’t already done so.

Have you done a monthly GCAP calculation in 2023? Save your files for import into IRPF 2024.

Have you made a profit? Have you paid taxes? Also keep your receipts in order.

Did you have an increase in your wealth? Remember to have information that proves its origin.

Some will ask, “I don’t have any of that, what should I do?” Collect as much information as possible and start putting together your puzzle as quickly as possible!

It is never too much to remember that RETURN is not synonymous with PAYMENT of tax. Only those who make PROFIT on sales whose sum in the same month (of sales) exceeds 35,000 pay tax. Anyone who sells an amount lower than this limit, even if they make a profit, is EXEMPT from tax.

Anyone who simply buys to ‘hold on’ pays no tax on this operation. However, you will have to declare it, as it is an asset that must be declared to the IRS for income tax if the acquisition value is higher than 5 thousand. Collecting cryptocurrencies does not entail an obligation to pay taxes, but it does not absolve you from the obligation to declare!

So be prepared and organized. Avoid the rush during the income tax return period. Happy holidays and a headache-free 2024 with Leo!

By Ana Paula Rabello and Gabriel Rother Candido.

Source: Live Coins