Are you a Crypto.com user looking to file your taxes?
Trying to report your cryptocurrency on your tax return can be a stressful experience. In this article, we’ll break down the fundamentals of how cryptocurrency is taxed and walk you through a simple step-by-step process on how to file your Crypto.com taxes.
Crypto.com was founded in 2016 by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo. The company got its first round of funding in an ICO in June 2017, when it raised more than $25 million.
Since then, the company has seen rapid growth. Between October 2020 and February 2021, Crypto.com grew its user base from 5 million to 10 million.
Part of Crypto.com’s success is the wide range of products and services that it offers to users. The company offers the ability to buy and sell cryptocurrencies, earn staking rewards, make purchases in cryptocurrency through the company’s debit card, and even buy and sell NFTs.
To help you better understand how your Crypto.com transactions will be taxed, let’s review the basics of crypto taxes.
The IRS considers cryptocurrency a form of property that is subject to both income and capital gains tax.
Income tax events: If you earn cryptocurrency as a form of income, this is considered personal income and will be taxed accordingly.
Capital gains events: You incur capital gains or capital losses every time you dispose of your cryptocurrency. Selling your cryptocurrency or trading it for another cryptocurrency on Crypto.com would fall into this category.
Buying and selling NFTs with cryptocurrency is considered a crypto-to-crypto transaction. You will incur capital gains and capital losses depending on how the value of your assets has fluctuated since you originally received them. For more information, check out our guide to NFT taxes.
Any tokens that you receive as a staking reward would be considered personal income and taxed accordingly.
The Crypto.com debit card offers customers the ability to convert cryptocurrency to fiat and make purchases. When you convert your crypto to fiat, you will incur capital or capital losses depending on how the price of your tokens has changed since you originally received them.
Crypto.com provides American customers with a 1099-K form when they have more than $20,000 in trade volume and more than 200 trades for the year. A copy of this form will also be filed with the IRS.
With the incoming passage of the American infrastructure bill, Crypto.com and other exchanges will soon be required to provide 1099 reporting information on all customers.
Many cryptocurrency investors use additional exchanges, wallets, and platforms outside of Crypto.com. However, Crypto.com's reporting only extends as far as its own platform. If you use additional cryptocurrency wallets, exchanges, DeFi protocols, or other platforms, Crypto.com may be unable to provide complete gains, losses, and income tax information.
For example, imagine buying Bitcoin on Coinbase, then transferring it to Crypto.com. In this case, Crypto.com would not know your cost basis for purchasing your Bitcoin since the transaction took place on a different platform. As a result, Crypto.com would struggle to provide complete information on your 1099-B form.
That’s why we recommend using CryptoTrader.Tax. CryptoTrader.Tax partners with Crypto.com and other exchanges to help investors accurately report all of their crypto transactions on their tax returns.
Here’s how you can import your Crypto.com transactions to the CryptoTrader.Tax platform.
Step 1: Log in to your Crypto.com account and click on the Transaction History icon on the top right of the Crypto Wallet screen.
Step 2: Click on the Export icon, select the date range and export the CSV, which is then imported onto our platform.
Step 3: Select a Start Date and End Date that contain your complete trading history. Then, click on Export to CSV.
Step 4: Click on the Download button to download the CSV file.
Step 5: In the CryptoTrader.Tax platform, upload your CSV file to the Crypto.com tab.
And that’s it! You’ll then be able to create a tax report that includes all of your Crypto.com transactions.
Want to get started managing your taxes on Crypto.com and other exchanges? Try out CryptoTrader.Tax, the crypto tax reporting software used by more than 100,000 investors. Get started with a free preview report - there’s no need to enter your credit card details until you’re 100% sure your transaction information is accurate.