Wondering how to report taxes on your Celsius holdings?
At its peak, Celsius served more than 1.7 million customers — many of whom are no longer able to withdraw their crypto-assets.
In this blog, we’ll break down how you can report your Celsius taxes. We’ll explain how you can write off potential losses and break down a step-by-step process for reporting your Celsius transactions to the IRS.
Celsius is a cryptocurrency platform that launched in 2018. The platform was famous for offering high interest on certain assets — in some cases, as high as 17% APY.
Celsius paused withdrawals for all customers due to market volatility and liquidity issues. In July 2022, the exchange filed for Chapter 11 bankruptcy.
In the United States, cryptocurrency is subject to capital gains and income tax.
For more information, check out our ultimate guide to cryptocurrency taxes.
At this point, it’s not clear if or when Celsius customers will receive access to their holdings. In the case that you do permanently lose access to your coins due to an exchange bankruptcy, you may be able to write off your losses.
For more information, check out our article on writing off losses in a potential exchange bankruptcy.
Interest rewards are considered income based on their fair market value at the time of receipt. You’ll pay income tax based on your personal tax bracket.
In years past, Celsius has issued 1099-MISC when customers earn more than $600 of ordinary income. An identical copy of this form is sent to both the customer and the IRS.
If you’re using multiple wallets and exchanges, trying to file your cryptocurrency taxes can be difficult. You may have trouble finding your cost basis, which is needed to calculate your capital gains and losses.
Crypto tax software like CoinLedger can help. The platform connects with hundreds of blockchains and exchanges — including Celsius — to help you file your taxes in minutes.
Here’s how you can import your Celsius transactions onto CoinLedger in 5 simple steps.
In your Celsius account, click the dropdown menu in the top right corner and select API.
You’ll want to create a read-only API key. To do this, scroll down to the Unique API Key section and click on Create New Key.
Toggle every Read permission in the window that appears and click on Generate.
Once your key is successfully generated, make sure to copy it and store it somewhere safe. It will not be shown to you again after this step is completed.
Navigate to the CoinLedger app. Select Add Account then choose the Celsius tab. Click on Auto-Import then enter your API Key into the correct fields. Once you’re done, click Sync Transactions.
And that’s it! Once you’re done, you can import your transactions from other wallets and exchanges and generate a comprehensive crypto tax report with the click of a button.
Looking for an easy way to file your crypto taxes? CoinLedger can help.
CoinLedger integrates with hundreds of exchanges and blockchains so that you can file your taxes in minutes. The platform is trusted by more than 300,000 crypto investors across the globe.