The answer to this question can be quite complex and will mostly depend on:
Your full crypto transaction history
What country you declare taxes in
Whether your crypto gains/losses can be offset by other taxable income
If you are using Divly, you will be able to get a much better understanding of your crypto tax situation both after and throughout the year. Having this knowledge can help you set aside the right amount of money to ensure that you can meet your tax obligations. The information can also help with strategies such as tax loss harvesting, used by savvy investors to lower their tax liability before the year is over.
There are three methods you can track this in Divly that we will explore in this article: 1. Tax summary, 2. Divly tax report, and 3. View your transaction history.
Note: Please consider that even though the methods below will give a good overview of your crypto taxes, it will not necessarily take into account how it will affect the other forms of taxes in your income declaration you may have (e.g. salary, stocks, interest, etc).
1. Tax Summary
Go to the Tax Report page in Divly. Then look to see if your country has a special table for your country. This will give a good summary of your taxable crypto income.
Example: Swedish tax payer
Example: German tax payer
2. Divly Tax Report
Go to the Tax Report page in Divly. Create and download an updated tax report for the year(s) you want to understand better. Depending on the country you declare in, the tax report may provide valuable information on the amount of crypto taxes you need to pay.
By purchasing and downloading the Divly Tax Report you will receive all the information needed to declare your taxes. Depending on the country, it may also give a good indication of how much you will need to pay in taxes. This will depend on the format of the report that has been localized for your country.
3. View your transaction history
Go to the Transactions page in Divly. Take note of the Profit/Loss column towards the right. Every transaction representing a sale of crypto will show a profit (in green) or loss (in red).
Although this will not tell you how much in taxes you will pay, it can give you a good understanding of where your gains & losses are coming from. This can be useful to understand!