Here’s how to do your CEX.IO taxes to be fully compliant.
CEX.IO is a global cryptocurrency exchange offering spot and leverage trading, crypto interest-earning vehicles, crypto loans, a secure digital assets wallet, a crypto debit card, and more.
Trading cryptocurrencies or earning crypto interest are both taxable events in the US. Discover how to report your CEX.IO taxes with the help of CoinTracking.
Is trading crypto on CEX.IO taxable?
Trading crypto is a taxable event in the US, subject to capital gains, including crypto trades on CEX.IO.
The IRS taxes cryptocurrency as property, similar to stocks, leading crypto-to-FIAT and crypto-to-crypto trades to be taxable events in the US.
As a result, if you trade any crypto for FIAT or a cryptocurrency for another on CEX.IO, you’ll need to determine the capital gain/loss on each trade and later report those gains/losses on taxes.
Learn more about the tax implications of trading crypto.
Do you pay taxes on margin trading crypto on CEX.IO?
Crypto margin trading on CEX.IO is a taxable event in the US, just like spot crypto trading, subject to capital gains taxes.
Crypto margin trading on CEX.IO is just the same as spot trading for tax purposes, despite the higher risk/return opportunity from an investing point of view.
Check this tax simulation on how to calculate and report your crypto margin trades.
CEX.IO taxes for earning crypto interest
Earning crypto interest or staking rewards on CEX.IO or other exchanges is a taxable event in the US.
If you earn crypto interest on CEX.IO, you would need to determine its Fair Market Value (in USD) when you receive it.
Each time you receive crypto interest, you need to follow this process because your cost basis (FMV) changes every time due to the underlying changes in crypto prices.
You’ll need to report all FMVs from the batches of crypto interest on your income tax return, specifically on Schedule B.
Discover more about what tax forms you need for crypto.
Is receiving crypto loans from CEX.IO taxable?
Receiving crypto loans is not a taxable event in the US, like receiving a regular loan is also not taxable.
On CEX.IO, you can receive loans based on crypto collateral, and you won’t have to do any extra crypto tax reporting.
Crypto loans can bring more advantages from a tax point of view.
Does CEX.IO provide crypto tax documents?
No, you can use a crypto tax platform to facilitate filling your CEX.IO taxes.
You can import CEX.IO trades into CoinTracking by API or CSV to determine your gains/losses on each trade and the Fair Market Value (in USD) of the crypto income you received.
After determining the gains and income, you can generate tax reports based on your preferred accounting method for the tax year and be one step closer to filing your CEX.IO taxes.
How to report CEX.IO trades?
With CoinTracking, you can import your CEX.IO trades, track your crypto gains/losses, and generate tax reports to file your CEX.IO taxes.
Here’s how to import your CEX.IO trades into CoinTracking by API
Follow these steps to import your CEX.IO trades into CoinTracking by API:
- Log in into your CEX account and navigate to Account -> Profile -> API
- Create a new key and select only the ‘Account balance’ permission
- Enter your Key, Secret and your ID here
Note: Imports of CEX.IO deposits and Withdrawals are not supported by API but you can import those with the CSV importer.
Here’s how to import your CEX.IO trades into CoinTracking by CSV
With CoinTracking, you can import your CEX.IO trades with a CSV by:
- Navigating at CEX.IO to Finance -> Transactions
- Setting the filter to All transaction types and select a Date range
- Clicking the Download CSV button at the bottom
- Uploading your CSV file here
If you have any doubts about importing your CEX.IO transactions into CoinTracking, please check this FAQ for more details.
After importing your CEX.IO trades, CoinTracking will automatically determine the gains/losses on each trade, and you’ll be able to generate tax reports with all that information.
Does CEX.IO report to the IRS?
If summoned, CEX.IO can report information about customers to the IRS since it serves US residents. Reports to the IRS have happened before with other crypto exchanges serving US customers and might also happen with CEX.IO.
How to report CEX.IO taxes?
You can report your CEX.IO taxes in three steps:
- Import your CEX.IO trades into a crypto tax software
- Determine the crypto gains/losses and income you had in the tax year
- Generate tax reports based on your preferred accounting method
If you had capital gains/losses from trading (spot/margin) on CEX.IO, you would have to include those, separated by short-term and long-term gains/losses, in your Form 8949 and Schedule D of your Form 1040.
If you have crypto income from earning interest on CEX.IO, you need to report it on Schedule B.
Discover how to report your crypto trades.
Learn how to import trades from CEX.IO into CoinTracking:
The best CEX.IO tax software: CoinTracking
The best CEX.IO tax software in the market 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.
Beyond CEX.IO, 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.
CEX.IO 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.