Looking to report your Exodus Wallet transactions to the IRS?
Trying to report taxes on your cryptocurrency wallets can be difficult, especially if you have a large number of transactions or you’ve transferred your cryptocurrency between different platforms.
In this guide, we’ll break down everything you need to know about how Exodus Wallet transactions are taxed. We’ll also share a simple step-by-step process detailing how to report your Exodus transactions on your tax return in minutes.
Exodus is a decentralized exchange and wallet founded in 2015 by J.P. Richardson and Daniel Castagnoni.
Exodus’s custodial wallet allows users to conduct peer-to-peer transactions in more than a hundred cryptocurrencies. The wallet is currently available on mobile and desktop devices.
Just like other cryptocurrency transactions conducted on other platforms, Exodus Wallet transactions are subject to capital gains and income tax.
Capital gains tax: When you dispose of cryptocurrency, you’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it. Examples of disposals include selling your cryptocurrency or trading it for another cryptocurrency.
Ordinary income tax: When you earn cryptocurrency, you’ll recognize ordinary income based on the fair market value of your crypto at the time you receive it. Examples of income events include receiving staking and mining rewards.
It’s important to remember that merely transferring cryptocurrency between Exodus and other wallets that you own is not considered taxable.
For more information, check out our complete guide to how cryptocurrency is taxed.
Exodus currently offers users the ability to earn staking rewards in cryptocurrencies like Cardano and Solana.
It’s important to remember that staking rewards are taxed as income based on the fair market value of your cryptocurrency at the time of receipt.
For more information, check out our complete guide to staking taxes.
At this time, Exodus does not report transactions to the IRS.
However, it’s important to remember that all transactions on your Exodus wallet are publicly visible on the blockchain. In the past, the IRS has partnered with contractors like Chainalysis to analyze blockchain transactions and crack down on tax fraud.
In the future, it’s possible that Exodus will be required to report to the IRS. The American infrastructure bill requires all cryptocurrency brokers to issue 1099-Bs to users and the IRS starting in the 2023 tax year. It’s unclear whether wallet providers like Exodus will be considered brokers.
At this time, Exodus and other wallet providers don’t provide tax forms to customers.
Self-custody wallet providers like Exodus don’t always have access to the information needed to calculate your taxes. That means the burden is on you to track your taxable events.
Unfortunately, trying to calculate your taxes on your own can be difficult. Because most investors transfer their cryptocurrency between different wallets and exchanges, it can be difficult to determine cost basis for your crypto-assets.
With CoinLedger, you have two options for reporting your Exodus transactions: through direct import or manual csv upload.
You can upload your transactions directly from the Ethereum blockchain. However, this will not capture transactions made on different blockchains (such as transactions executed on Solana or Cardano).
1. Select the Ethereum coin within the Exodus wallet.
2. Select ‘Receive’, then copy your wallet address.
3. Within the CoinLedger platform, select ‘Import’ and select the option ‘Ethereum Wallet’.
4. Copy and paste your Exodus Wallet address.
5. CoinLedger will automatically pull in your Exodus wallet transactions directly from the blockchain.
6. You can classify your transactions based on the type of activity you’ve conducted.
Alternatively, you can import all of your Exodus trades through a manual csv upload. This will capture all of your transactions, regardless of which blockchains you are using.
Here’s a full walkthrough of how to upload your Exodus transactions on CoinLedger through a csv file.
Once you’ve uploaded your transactions, you’ll be able to generate complete capital gains and income reports with the click of a button.
With CoinLedger, reporting taxes on your cryptocurrency transactions has never been easier. Join the 300,000+ crypto investors around the world who use CoinLedger to file their taxes in minutes.