How to Do Your Bittrex Taxes?
Bittrex Global, situated in Seattle, is a reliable cryptocurrency exchange, noted for its next-level security. Users may trade over 700 digital currencies in a safe platform provided by the organization. The exchange now handles over $1.5 billion in monthly trading activity.
Bittrex has earned a reputation for security over the years as its founding team members were initially a part of Amazon, Microsoft, and Blackberry. The exchange provides two-factor authentication to all of its users, as well as a slew of additional security and dependability measures.
How to Do Your Bittrex Taxes?
Before we cover how to do your Bittrex taxes, let's go through the fundamentals of crypto taxation so that you can have a clearer understanding of Bittrex tax reporting.
The Internal Revenue Service (IRS) taxes cryptocurrencies similar to property and is taxed on both income and capital gains. So what are income and capital gains?
Capital Gains Event
When you sell your bitcoin, you make a profit or a loss on your investment. This includes swapping or selling your coin on Bittrex.
It's critical to keep track of how long your assets are held. You will pay the somewhat reduced long-term capital gains tax if you hold your cryptocurrency for more than a year.
Income Tax Events
If you obtained cryptocurrency as a reward for mining, staking, or as a payment, it will be treated as personal income and taxed at its fair market value at the moment you received it.
Even though you cannot mine or stake crypto on the Bittrex platform, you must account for any crypto revenue profits sent to Bittrex.
But the next important question is how to do your Bittrex taxes and does Bittrex provides you with tax forms.
Will Bittrex Provide Your Tax Forms?
Unfortunately, no, Bittrex does not provide tax forms. Owing to the peer-to-peer nature of cryptocurrencies, generating comprehensive tax documents for consumers is extremely difficult for any exchange.
Consider purchasing a certain amount of Bitcoin on Coinbase and transferring it to Bittrex. Bittrex will not know the exact cost basis of your Bitcoin if you decide to sell it because the transaction was made on an external platform. As a result, your capital gains and losses will not be accurately calculated by the platform.
Fortunately, there is another option for investors to appropriately submit their taxes. ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Let’s find out how to do your Bittrex taxes with the help of ZenLedger.
Connecting Your Bittrex To ZenLedger For Your Crypto 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!
The Bottom Line
Now you have a clear understanding of how to do your Bittrex taxes.
All in all, Bittrex may be a decent option for seasoned cryptocurrency traders. Hundreds of assets are offered by the platform, with a concentration on crypto-to-crypto trading pairings. Apart from its lack of a Bittrex tax reporting tool, its strong security elements and the ability to put advanced orders will undoubtedly appeal to investors.
ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional prepared plans!