You can do your BYDFi taxes with the help of CoinTracking after importing your trades, determining your capital gains, and generating tax reports with our tool.
BitYard is available for US customers to trade cryptocurrencies. Do you know how crypto trades on exchanges like BYDFi are taxed in the US?
Let’s find out how crypto trading taxes work in the US, how to report your BYDFi trades, do your BYDFi taxes, and how CoinTracking can help.
Do you pay taxes for buying crypto on BYDFi?
Buying crypto with FIAT is not a taxable event in the US. As a result, buying any digital asset with USD on BYDFi is not taxable.
On BYDFi, you can buy several cryptocurrencies with FIAT (e.g., USD, YEN), but buying crypto with FIAT is not taxable, unlike when you sell one cryptocurrency to buy another.
Do you pay taxes trading crypto on BYDFi?
When you trade cryptocurrencies on BYDFi, you’ll face taxable events in the US, subject to capital gains taxes.
On BYDFi, you can trade 100+ digital assets for FIAT (e.g., USD) or other digital assets. Both crypto operations, crypto-to-FIAT and crypto-to-crypto trades, are taxable events in the US.
If you buy crypto with another crypto, you’re essentially selling the first crypto and will need to report that capital gain. Let’s see an example.
If you bought one bitcoin at 30K and then exchanged the bitcoin for ETH when the BTC price was at $50K, you would have a 20K gain for the sale of your Bitcoin for Ethereum.
If the sale happens before you hold your bitcoin for more than 12 months, you’ll be subject to a short-term capital gains tax rate. If you hold it for over 12 months, you can get a tax benefit by enjoying a lower long-term capital gains tax rate.
Does BYDFi report to the IRS?
Any exchange that serves US customers and does KYC could, in some situations, be requested to share information with tax authorities like the IRS. This is not exclusive to BYDFi.
Does BYDFi provide tax documents?
BYDFi does not provide tax documents for crypto reporting, but its integration with crypto tax software like CoinTracking enables you to report your crypto taxes easily.
With the CoinTracking BYDFi CSV import, you can enter your trades, determine your capital gains, and generate tax reports.
How to report your BYDFi trades?
You can track and report your BYDFi trades by importing them into a crypto tax software. Here’s how to import your trades into CoinTracking by using a CSV:
- Login into BYDFi and navigate to Orders -> Spot -> Trade History
- Select Export -> Time Period -> Export
- Download the CSV file and upload it here.
Please check this FAQ guide with all the steps to export your trades from BYDFi and then import them into CoinTracking (With screenshots).
How to report your BYDFi taxes?
If you trade crypto on BYDFi, you’ll have to report your gains and losses for the tax year.
If you have gains/losses, you’ll need to file form 8949 and Schedule D with your Form 1040, with several data points for your trades, including:
- Date of acquisition
- Date of disposal
- Sales proceeds
- Cost basis and more.
You’ll then have to report each trade in the appropriate section of Form 8949 based on its short-term or long-term status.
The best BYDFi tax software: CoinTracking
The best crypto tax software for BYDFi trades is CoinTracking.
You can import your trades using CSV or API, track your gains/losses, and generate tax reports according to your preferred accounting method.
CoinTracking is your full crypto tax solution for:
Moreover, CoinTracking can easily classify all your earnings from yield farming, liquidity pools, crypto staking, and much more.
BYDFi taxes with no errors: CoinTracking Full Service in the US.
CoinTracking also offers a Full Service for US traders. A crypto reconciliation tax expert from Polygon Advisory Group, a leading US crypto tax firm, will review your CoinTracking account, help fix any errors, and ensure you submit your crypto tax reports error-free.
This post is part of the Crypto Taxes AMA series. Follow our weekly AMAs on Twitter where our expert CPA, Sharon Yip answers your crypto tax questions. You can download 35+ AMA crypto tax reports for free.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.