Are you trading crypto on MEXC? If you’re in the US, MEXC Global is one of the crypto exchanges you can use to buy, sell, and trade crypto, but there are taxes involved.
Did you, during 2022, trade any crypto, including margin or Futures trades on MEXC? Did you earn any staking rewards on MEXC? If yes, you’ll have taxable events to report in the 2023 crypto tax season.
Let’s cover everything you need to know about trading crypto on MEXC, how to report your crypto taxes, and more!
Can US citizens use MEXC?
Yes, MEXC Global is available for US residents to use for crypto trading since the company is licensed in the United States. With MEXC global, you can trade a variety of cryptocurrencies, including on margin and Futures, while also earning rewards through staking and other vehicles.
Do you pay taxes on trading crypto on MEXC?
As a US resident, you can buy and sell crypto on MEXC Global, incurring a taxable event in the US.
According to the IRS, any conversion of crypto into another cryptocurrency or FIAT (e.g., USD) is a taxable event in the US, subject to capital gains taxes.
Your capital gains tax rate will depend on your holding period for the sold crypto. If you held your crypto for 12 months or less, you’d be taxed at a short-term capital gains tax rate, ranging from 10% to 37%.
If you held the sold crypto for more than 12 months, you’d be taxed at a long-term capital gains tax rate, ranging from 0% to 20%. Learn more about taxes on crypto trading.
Do you pay taxes trading crypto on margin or Futures on MEXC?
Yes, trading crypto on margin or trading crypto futures will result in the same taxable event as trading crypto (spot).
If you trade crypto with leverage or Futures, you’ll be subject to capital gains taxes in the US, ranging from 0% to 37% depending on your holding period and other factors.
Do you pay taxes when staking on MEXC?
Yes, if you earn staking rewards or other types of crypto interest rewards on MEXC or any investment vehicle, you’ll have a taxable event in the US.
Interest reward in the US is taxed at an ordinary income level, according to your effective tax rate, depending on your total taxable income for the year (including other non-crypto income).
How do I get a CSV report from MEXC?
You can track your MEXC global trades by exporting a CSV transaction report and then importing it into a crypto tax software like CoinTracking. Here’s how to download a CSV from MEXC Global:
- Login into MEXC and navigate to Orders -> Spot Order -> Trade History
- Select Export Trade History -> All for Trading Pairs and Side -> Date -> Generate
- Download your CSV.
How to track MEXC trades?
You can import all of your MEXC trades, including Futures trading, into a crypto software like CoinTracking with our CSV importer.
How to calculate your MEXC taxes?
You can calculate your MEXC taxes by importing your transaction history into a crypto tax software, determining the gains/losses on each trade, and generating tax-compliant reports.
If you traded crypto on MEXC, you’d have gains and losses that need to be reported on Form 8949 and Schedule D of your Form 1040.
If you earned crypto rewards from staking, you’d need to report it in your US Individual Income Tax return. Discover which tax forms you need for crypto.
The best crypto tax software: CoinTracking
The best crypto 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.
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.
MEXC 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.