Have you traded cryptocurrency on Binance or Binance.US?
In this guide, we’ll cover everything you need to know about both company’s tax reporting policies. We’ll also break down a simple way to report your
in minutes. Binance taxes Do I have to pay taxes on my Binance transactions?
Cryptocurrency is classified as property by the IRS. As a result, your cryptocurrency activity on Binance and other platforms is subject to capital gains and ordinary income tax.
Capital gains tax: If you dispose of your crypto-assets, you’ll incur . Examples include selling your cryptocurrency for fiat or trading it for other cryptocurrencies. capital gains tax Ordinary income tax: If you earn cryptocurrency, you’ll recognize ordinary income. Examples include earning referral or interest rewards.
For more information, check out our
. complete guide to cryptocurrency taxes Does Binance report to the IRS?
At this time, Binance.com is not operating within the United States and as a result, Binance.com does not report to the IRS. American cryptocurrency users that want to access Binance can instead use Binance’s partner company, Binance.US.
Does Binance.US report to the IRS?
When a customer earns more than $600 through staking, referrals, and other income-generating activities, Binance.US issues a Form 1099-MISC and files an identical copy with the IRS.
This form provides information about ‘miscellaneous income’ and does not include information about capital gains and losses from disposals, which is needed to accurately
. report your taxes
In the future, it’s likely that Binance.US and other major exchanges will be required to report all customers’ capital gains and losses to the IRS due to the passage of the
. This Form 1099-B that Binance.US uses to report to the IRS in the future will contain detailed information about all cryptocurrency disposals on the platform. American infrastructure bill What does the IRS do with the information Binance.US provides?
In the past, the IRS has used information from
to send warning letters to crypto investors. It’s reasonable to assume that large discrepancies between your tax return and your 1099 form will increase your risk of a 1099 forms . cryptocurrency tax audit How do I report my Binance.US taxes?
Looking to report your Binance taxes?
like CoinLedger can help. Cryptocurrency tax software CoinLedger integrates with Binance.US and dozens of other cryptocurrency exchanges. Once you’ve uploaded your transactions, you’ll be able to generate a comprehensive with the click of a button. tax report . Get started with a free preview report today