Tax is one of those things that you can’t avoid (no matter how much we all want to) and if you’re an active crypto investor/ holder/ trader, reporting cryptocurrency on your tax return can be a forevermore daunting task – especially if you are a newbie.
To some respite, however, there exist tons of crypto exchanges that help their users execute trades without any issues. Not only this but come tax season, these exchanges also help the users pay their taxes. One such popular exchange is Crypto.com which offers a massive selection of crypto tokens for a reasonable fee.
Connecting your Crypto.com Address to ZenLedger For Your Crypto.com Tax Forms
As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 400+ exchanges.
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you’ll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the “Exchanges” tab of the “Imports” page. Select the exchange that you are looking to import, and instructions will be provided for that specific exchange!
What is Crypto.com?
Crypto.com is a well-known cryptocurrency exchange that was established in 2016 and offers a variety of digital assets and DeFi products. The firm has grown quickly since its founders, Kris Marszalek, Bobby Bao, Rafael Melo, and Gary Or, raised $25 million in its first round of investment through an initial coin offering (ICO).
The wide range of goods and services that Crypto.com provides to its consumers is another factor in the site’s expansion. Users may purchase and sell virtual currencies, stake their tokens for rewards, purchase virtual currencies with the debit card offered by Crypto.com, and purchase and sell NFTs.
How are Crypto.com Transactions Taxed?
For a better understanding of Crypto.com taxes, let’s quickly take a look at the basics of crypto taxes.
According to the IRS, cryptocurrencies are considered property and are subject to both capital gains tax and income tax.
- Capital gains events: If you sell your crypto tokens, you either incur a capital gain or a capital loss. If you exchange your token for another, it would also fall in the capital gains or capital loss category.
- Income tax events: If you receive crypto tokens as income, it will be seen as personal income and will be taxed accordingly.
NFT Taxes on Crypto.com
When you buy/sell an NFT with crypto tokens, it is treated as a crypto-to-crypto transaction. Depending on the price fluctuations of the digital asset since you originally received them, you will incur capital gains or losses and will be taxed accordingly.
Staking Rewards Taxes on Crypto.com
Rewards received from staking would be treated as personal income and taxed accordingly.
Crypto.com Debit Card Taxes
With the Crypto.com debit card, the customers can convert digital currency into fiat currency and make purchases. Converting crypto to fiat triggers a capital gain or loss depending on the changed price of the token since you originally received them.
Why Can’t Crypto.com Generate My Tax Forms?
The majority of crypto investors use exchanges and digital wallets outside of Crypto.com. It is important to note that Crypto.com’s tax forms reporting is only limited to its own platform. If an investor uses other crypto exchanges, wallets, or DeFi protocols, Crypto.com will be unable to provide accurate capital gains, losses, and income tax information.
For instance, if you buy Bitcoin from Kraken and then transfer it to Crypto.com, the exchange would not be able to calculate the accurate cost basis. As a result, the information on Form 1099-B would be incomplete. This is where ZenLedger shines. It partners with Crypto.com and 400 other exchanges to help you accurately report your crypto taxes.
How to Fill Crypto.com Taxes?
We’ve created a step-by-step guide to reporting your Crypto.com taxes. Here’s how you do it:
Step 1: Sign in to your Crypto.com account and on the top right corner of the crypto wallet screen, click on the “Transaction History.”
Step 2: Hit the “Export” button, choose the date range and export the CSV file, which is imported on the Crypto.com platform.
Step 3: Choose the “Start Date” and an “End Date” containing your entire trading history. Next, click on Export to CSV.
Step 4: Download the CSV file.
Step 5: You can use ZenLedger to upload your CSV file.
And just like that, you’ll be able to create your tax report including all your transactions.
Final Thoughts
Crypto.com is a crypto exchange that supports investing, trading, NFTs, staking, and more. It offers more than 250 digital tokens with reasonable fees. On top of this, the exchange makes it quite easy to fill out the crypto tax report with just a few steps.