Transaction & Tax Type

Your transactions are taxed differently depending on their type, so transaction types are necessary. Please specify the types of uncategorized outgoing and incoming transactions based on the following descriptions.

<Trade>

  • Includes all buys, sells, conversions, and token swaps.
  • There is no need to add a separate category for each because Cointelli will automatically recognize each "Trade" as a "Buy", "Sell", or "Convert".

<Outgoing Transactions>

<Incoming Transactions>

TAX TYPES

Crypto capital gains tax

Crypto income tax

Tax-free crypto activity

Purchasing goods online

- You are taxed the same way as when you sell cryptocurrencies, whether you are paying rent, buying an old TV, or paying for a Netflix subscription.

Mining crypto

- Any profits you make from a mining pool or service, or from your own mining rig, are taxable as ordinary income and are generally reported on your tax return.

Buying crypto

- When it comes to cryptocurrencies, the first step is to purchase coins. Buying cryptocurrency is not a taxable event, so if you bought an entire stack and still have it, you're in luck!

Margin trading

- A margin trade is borrowing funds from an exchange to execute a transaction and then repaying the loan. In the absence of clear guidance, the sensible course of action is to treat borrowed funds as your own investment and pay capital gains tax on margin transactions and loan repayment.

Getting paid in bitcoins

- You can't avoid paying income tax whether you're a freelancer or employee getting paid in cryptocurrency.

- Coins received as income are generally taxed at market value at the time of receipt, so make sure you declare them or you may be hit with a tax bill.

Gifting crypto

- Gifts to friends and family members are tax-free up to $15,000 per person. If you're feeling kind, this is a great opportunity to not pay taxes on your crypto built in gains.

- If the gift is valued at more than $15,000, you must file a gift tax return using Form 709 (USA). Gifts made in multiple transactions to a single individual will be aggregated to determine if the threshold amount has been reached.

Futures, contracts, or options trading with crypto

- You are not actually purchasing or selling any cryptocurrency when you trade futures. Instead, you're taking a long or short position that the price of the underlying crypto asset will either rise (long) or decline (short) in the future. You will either make a profit or a loss when you exit the transaction  (PnL)

Gambling with crypto

- In the United States, gambling winnings are taxed as ordinary income. Winnings are generally taxed at your federal income tax rates , while losses are generally tax deductible (up to $3000 against ordinary income). Unused losses can generally be carried forward to future years.

Token and coin swaps

- These occur when a cryptocurrency's underlying technology is updated. For example, there were no tax liabilities when EOS moved from the Ethereum blockchain to the EOS mainnet, or when DAI changed its contract address and renamed the old coin SAI.

Participating in an ICO or IEO

- Participating in an ICO or IEO creates a taxable event because you are exchanging one coin for another, i.e. future tokens.

Interest from DeFi, Lending, Staking, or Masternodes

- Interest received from DeFi is taxed in the same way that mining is. You must report it as ordinary  income on your income tax return.

Transferring crypto between own wallets

- When a cryptocurrency's underlying technology, for example, is updated. There were no tax liabilities when EOS moved from the Ethereum blockchain to the EOS mainnet, or when DAI changed its contract address and renamed the old coin SAI.

Selling crypto

- When you sell your crypto, you'll incur tax responsibilities.

Airdrops & forks

- There were uncertainties until 2019, when the IRS officially clarified that any airdrops or forks must be reported as income.

Donating crypto

- Donations are generally deductible, but only if they are made to a recognized charity.

Trading with stablecoins

- Stablecoins are cryptocurrencies and are taxed in the same as any other crypto-to-crypto transaction.

Sign-up & referral bonuses

- Any cryptocurrency you receive in exchange for signing up for a service or introducing users is taxed as ordinary income.

 

Trading or exchanging crypto

- Trading one crypto for another (e.g.,  BTC → ETH) is also a taxable event.

   



Remember:

Crypto capital gains tax

  • A capital gain is the profit or loss from trading or selling assets like crypto.

Crypto income tax

  • Cryptocurrency interest income, staking income, mining income, airdrops and hard forks are taxed as ordinary income.

Tax-free crypto activity

  • Not every aspect of crypto trading is taxable. In some cases, you might not have to pay any tax at all.