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Etoro

eToro is a market-leading online brokerage offering both crypto trading and stock trading services. eToro is among the first online trading platforms to support virtual currency trades when it added support for Bitcoin in 2014. Shortly after that, the platform added support for Ripple and Ethereum. 

Presently, eToro supports more than 40 cryptocurrencies and offers an enterprise-grade crypto platform for professional traders and a multi-currency crypto wallet. Trading on eToro is simple with its web-based platform and well-designed mobile app. But, is the same simplicity provided by the platform while doing eToro taxes? What eToro tax forms are required to report your eToro taxes? Let’s find out. 

Connecting your eToro Address to ZenLedger For Your eToro 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. We support a direct API code import for many centralized exchanges, 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!

How to Download Your Transaction History from eToro?

You can use your eToro account to download and export your history of transactions performed on the platform to calculate your eToro taxes. From there you can either use a crypto tax calculator or do your taxes manually. Here’s how you download the transaction history:

  • In the left-hand sidebar, click on the Portfolio tab and then hit the clock icon
  • Here, under the History tab, you’ll see all your closed trades
  • Next, set a timeframe of the transactions you wish to view
  • Click the filter icon to see the information related to a specific type of current investment
  • Click the list icon to see all the individual trades closed during the selected time frame
  • If you click on the settings wheel, it will give you two options: 
  • You can click on the Account Statement to generate a report of all transactions for a selected timeframe.
  • You can click on Customize to adjust the information you want to see in the History View and rearrange the order. 

Does eToro Issue 1099 Forms?

US-based users might receive consolidated 1099-B or 1099-K forms based on the investments and other activities. Form 1099-B consists of the earnings and short-term capital gains and losses, while Form 1099-K has all transactions detailed by month. Also, the US-based eToro users may also get a Form 1099-MISC based on their investment activities. Remember, when you receive a Form 1099, the IRS receives it as well.  

Note: The consolidated 1099-B and 1099-K should only be used for informational purposes and not official IRS forms. 

Does eToro Report to the IRS and other Tax Offices?

Whenever a user receives a Form 1099 from eToro, the IRS gets an identical copy of the form as well. So, yes, eToro reports to the IRS. Moreover, as a part of the Common Reporting Standard (CRS), eToro must report to tax authorities. The information they share depends on the regulations of the country they operate in. However, it is likely that eToro is reporting to the ATO, HMRC, and the CRA. 

How to Generate eToro Tax Forms?

If eToro is issuing a Form 1099, you’ll get them automatically by February to report your eToro taxes. The pitfall with the Form is that it only takes your crypto investment activity on that specific exchange into consideration. So, the 1099-MISC will only consider your crypto transactions made on eToro. 

For investors who use only eToro, this isn’t a problem, but the majority of investors use more than one exchange for their investments. Therefore, Form 1099 doesn’t cover total taxable transactions. 

This is where a crypto tax calculator such as ZenLedger comes in handy. It supports more than 500 exchanges and wallets making it easy to track all your crypto transactions and taxes on one single platform. When you import your crypto trading history into ZenLedger from all exchanges and wallets, it automatically calculates the cost basis, gains/losses, and fair market value from the provided transaction history. 

The Takeaway

eToro is a multi-asset broker and it goes above and beyond to provide a smooth trading experience for its users. It also keeps reporting eToro taxes simple for its users. The platform has an easy process of downloading the transaction history in CSV format which can be further uploaded to a crypto tax calculator to determine your eToro taxes. The platform is trusted by over 13 million traders across the globe. The factors that invoke trust in the exchange are operational history, proper regulatory licensing, and an excellent customer service track record.