Are you trading crypto on BitMart and looking to take care of your tax obligations?
In the US, trading crypto is taxable, leading to capital gains taxes and some reporting requirements. If you are trading on exchanges, you’ll likely have several taxable events.
Let’s cover if trading crypto on BitMart is taxable, what kind of taxable events you may have on BitMart, how to report your BitMart tax, and more!
- Trading cryptocurrencies on BitMart is a taxable event in the US;
- Buying and selling NFTs are taxed in the US, the same way as for crypto trading;
- Earning interest on BitMart leads to income taxes;
- Crypto exchanges like BitMart may share your information with the IRS;
- You can report your BitMart taxes by tracking your trades on CoinTracking and generating the right tax forms.
Is trading crypto on BitMart a taxable event?
Trading cryptocurrencies in the US, across any exchange, including BitMart, is a taxable event, subject to capital gains taxes.
If you sell any cryptocurrency for another cryptocurrency or FIAT (e.g., USD), you’d have a taxable event, leading to reporting the gain/loss from that transaction in your crypto taxes. Buying cryptocurrency with another cryptocurrency is also a taxable event subject to capital gain taxes.
Remember, crypto-to-FIAT and crypto-to-crypto trades are both taxable events in the US, and you always have to report the gains/losses you have from that transaction.
Discover more about crypto taxes in the US.
Is earning crypto interest on BitMart taxable?
BitMart offers flexible savings products, enabling you to earn crypto interest rewards, which will be taxed at the income level in the US.
When you receive crypto interest from BitMart, you need to determine its Fair Market Value (in USD) at the time you receive it and include it in your total income for the year.
CoinTracking helps you track every batch of crypto interest or staking rewards you receive and makes it much easier to report this income in your income tax return. Find out more about how crypto interest is taxed.
Do you pay taxes from staking on BitMart?
BitMart offers ETH staking, letting you earn ETH rewards, a taxable event in the US subject to income taxes.
If you receive any ETH rewards from staking, you’d need to determine the Fair Market Value (in USD) at the time you received them.
You need to account for each batch of staking rewards that you receive, and then you need to include that income in your Form 1040. Discover more about staking taxes in the US.
Do you pay taxes trading NFTs on BitMart?
Buying and selling Non-Fungible Tokens (NFTs) is a taxable event in the US, subject to capital gains taxes.
NFTs are taxed the same way as crypto, where you need to determine the gain/loss on each trade and then report it on your crypto taxes.
Find out more about NFT taxes.
How do you get tax documents for BitMart?
You can get your crypto trading information from BitMart by connecting their API to crypto tax software. CoinTracking will automatically import your transactions and determine your crypto gains/losses.
It only takes a few minutes to connect your API Key on BitMart to CoinTracking and to import all of your BitMart transaction history. After importing your trades, you’ll be able to know your gains/losses (CoinTracking does it automatically), and you can generate the right crypto tax documents.
CoinTracking supports integrations with leading tax filing software in the US, like TurboTax, to file your crypto tax return.