eToro, one of the leading financial brokers worldwide, supports cryptocurrencies, becoming a prime choice for US customers.
Let’s discover more about eToro crypto capabilities, how many digital assets you can trade on eToro, how much taxes you pay on crypto capital gains, and how to report your eToro crypto taxes.
Key Takeaways about eToro tax
- Trading cryptocurrencies on eToro is a taxable event in the US, subject to capital gains taxes;
- You must track your gains/losses from trading on eToro and report them;
- You can import your trades from eToro into CoinTracking and generate the right tax forms.
How many cryptos does eToro have?
eToro currently supports 25 cryptocurrency trading pairs, excluding crypto-to-crypto trading, while charging a 1% fee on crypto transactions.
Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Bitcoin Cash (BCH), Ripple (XRP), Stellar (XLM), and TRON are some of the cryptos available on eToro for US customers.
eToro is a great certified broker for crypto investors to securely buy cryptocurrency with Fiat (e.g., USD) on its gateways while safely holding your crypto assets. You can transfer your crypto assets in and out of eToro and cash out after selling your crypto.
However, if you’re looking to diversify your crypto investment through crypto interest vehicles, staking rewards, or NFT trading, you should look for other crypto-native platforms.
Do you pay taxes for trading on eToro?
Yes, if you trade any cryptocurrency on eToro, like selling Bitcoin for USD, you’d be taxed on those transactions at a capital gains tax level in the US.
Buying cryptocurrencies with fiat (e.g., USD) is not a taxable event, but selling any portion of your crypto holdings for fiat or another cryptocurrency is a taxable event in the US.
If you have crypto trades from using eToro, you’d be taxed according to the holding period of your cryptocurrency. You will be taxed at a long-term capital gains tax rate, ranging from 0% to 20% if you hold your crypto for over 12 months before selling.
If you hold your crypto for 12 months or less before selling, you’d be taxed at a short-term capital gains tax rate, ranging from 10% to 37%, depending on your personal situation (e.g., filing status and total taxable income).
The Best Crypto Tax Calculator!
eToro crypto tax uk
Crypto investors from the UK using eToro will have to report their crypto gains/losses to UK tax authorities.
Crypto trading gains and income is taxed in the UK, and trades from eToro are not an exception. Learn more about how to report eToro crypto taxes in the UK.
eToro crypto tax documents
You can receive a Form 1099 with your crypto trading information from eToro and get your other necessary crypto tax documents to file your taxes (e.g., Form 8949) with crypto tax software.
If you trade cryptocurrencies on eToro, you’d have gains/losses from those transactions. Those gains will be taxed. You can import your eToro crypto trades into crypto tax software like CoinTracking to track your portfolio and then generate a tax report.
Your Form 8949, necessary to report your crypto capital gains/losses, will have all the information regarding your crypto sales, such as date acquired, date sold, gain/loss, short-term/long-term trade, etc.
How to report your eToro crypto trades?
CoinTracking supports eToro crypto trades, enabling all investors to import trades, track their portfolios, and generate eToro crypto tax reports.
You can import your eToro transaction data by following these steps:
- Log in to your eToro account
- Go to Settings -> Account -> eToro Account Statement
- Select report dates
- Click on ’Create’
- Click on the Excel icon at the top right corner.
- You’ve successfully exported your crypto transactions from eToro.
- You can now upload your crypto trades into CoinTracking here.
How to do your eToro crypto taxes?
You can do your eToro crypto taxes by tracking your crypto gains/losses on a crypto tax software like CoinTracking and generating the right crypto tax forms: Form 8949 and Schedule D of your Form 1040.
On those forms, you’ll have to separate crypto gains/losses by either short-term or long-term since they will be subject to different tax rates. This is why it is crucial to keep track of all your crypto trades by using the right tools since it enables you to reduce crypto taxes.
Does eToro report to tax authorities?
eToro, like any other broker or crypto exchange serving US customers, can be targeted by tax authorities and be required to share customer information, including all the transactions in your eToro account.
In the European Union, sharing tax information between local authorities is now easier under new regulations. For example, if customers do not report their taxes, it’s likely that tax authorities will have access to that information and enforce your taxes.
Best eToro crypto tax calculator
The best eToro crypto tax tool in the market is CoinTracking.
With the right crypto tax software, you can import your eToro trades, track your gains/losses, and generate crypto tax documents. CoinTracking is your full crypto tax solution, enabling:
- Track trades from 110+ available exchanges, DeFi and NFTs
- 20+ advanced portfolio reporting features
- Shows you which coins are eligible for a tax-free rate
- 10+ accounting methods (e.g., FIFO, LIFO, HMRC, ACB)
- Compliant crypto tax reports
Crypto taxes done for you with Full-Service
CoinTracking also offers a Full Service for US crypto investors. 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.
Your Crypto Taxes, Our Responsibility
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.
