Are you a crypto investor looking to pay taxes on your Voyager transactions?
In this guide, we’ll discuss everything you need to know to accurately file your tax return. We’ll break down the basics of how cryptocurrency is taxed and walk through a simple step-by-step process to make sure you’re including all of your Voyager transactions on your tax return.
Voyager is a mobile-based crypto broker that offers crypto interest accounts and zero-fee trading. Voyager was founded in 2018 by Steve Ehrlich, former CEO of E*Trade, and Oscar Salazar, co-founder of Uber.
Based in the US, Voyager is a fully-licensed and publicly-traded company that manages over $3 billion in crypto assets. In just a few years, Voyager has demonstrated remarkable growth. According to Voyager’s CEO Steve Ehrlich, the company’s user base grew from 43,000 in January 2021 to 665,000 users by June 2021.
To help you better understand how much you’ll be paying in taxes on your Voyager transactions, 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. Earning interest on Voyager would fall into this category.
Capital gains events: You incur capital gains or losses every time you dispose of your cryptocurrency. Selling your cryptocurrency on Voyager or another exchange would fall into this category.
Typically, trading cryptocurrency for other cryptocurrencies is considered a disposal event and is subject to capital gains tax. However, Voyager currently does not support crypto-to-crypto trades.
Unfortunately, all cryptocurrency exchanges struggle to provide users with complete gains, losses, and income tax history.
Because of the peer-to-peer nature of cryptocurrencies, tokens are transferred to different wallets and different exchanges on a regular basis. This makes it difficult for any one exchange or wallet provider to generate holistic tax reports.
Consider the following example.
In this case, Voyager cannot tell what David’s cost basis was for acquiring his tokens since it took place outside of the platform. This makes it difficult for Voyager to accurately calculate capital gains and losses for users.
Voyager does partner with platforms like CryptoTrader.Tax to allow investors to keep track of all of their crypto transactions and file their tax return with ease.
Here’s a step-by-step guide to accurately reporting your Voyager transactions.
Step 1: Go to the Voyager Tax Request form.
Step 2: Enter the email address you used to sign up with Voyager.
Step 3: Click the following option for your file format.
Step 4: Go to CryptoTrader.Tax, add Voyager to your exchanges and upload the transaction file you’ve received from the Voyager team.
Looking to get started with your crypto tax filing today? Try CryptoTrader.Tax. You can import your transactions from Voyager and any other exchange you’re using for free. There’s no need to enter your credit card information until you’re 100% sure you have the correct information.
Get started with a free preview report today.