Looking to report your FTX transactions on your taxes?
FTX’s bankruptcy in 2022 caused shockwaves throughout the crypto ecosystem and left customers wondering whether they would be able to recover their holdings.
In this guide, we’ll break down everything you need to know about how FTX transactions are taxed. We’ll also share a simple tip that can help you file your crypto taxes in minutes.
FTX is a cryptocurrency exchange founded by Sam Bankman-Fried and Gary Wang in 2019. In 2022, it was estimated that the exchange had more than $10 billion in daily trade volume.
In November 2022, FTX filed for bankruptcy after rumors of financial difficulties and liquidity issues.
For information on FTX’s US subsidiary, check out our article on FTX.US taxes.
If you’ve earned income or made gains from cryptocurrency on FTX during the tax year, you’re required to report this on your tax return — even if you no longer have access to your holdings.
However, if you permanently lose access to your cryptocurrency, you may be able to write off its value as an investment loss (more on this in the next section). Losses can be used to offset capital gains from cryptocurrency and other assets.
At this time, it’s unclear whether FTX customers will regain access to their funds after bankruptcy proceedings — a process that can take years to complete.
If you lose access to your FTX holdings permanently, you may be able to write off the value of your lost crypto-assets as an ‘investment loss’. However, you will relinquish the right to re-claim your holdings in the future.
For more information, check out our guide to writing off your FTX losses.
In most countries, you’ll pay taxes on crypto when you earn or dispose of crypto.
When you earn crypto, you’ll recognize income based on the fair market value of your cryptocurrency at time of receipt.
When you dispose of crypto, you’ll recognize a taxable gain or loss depending on how the price of your coins have changed since you originally received them.
For more information, you can explore our guides to how cryptocurrency is taxed in various countries.
It’s important to keep a careful record of your cryptocurrency transactions. Generally, it’s recommended that you keep track of the following information for at least 5 years.
At this time, FTX doesn’t provide tax forms to users.
Typically, cryptocurrency exchanges have trouble reporting taxable income to their users. Because investors often transfer their coins across different wallets, it’s difficult to find information on cost basis — which is needed to calculate capital gains and losses.
As a result, the burden for keeping records of crypto transactions falls on the investor.
Trying to manually track your cryptocurrency transactions for tax purposes can be difficult. Luckily, there’s an easier way.
With CoinLedger, you can report your FTX taxes in a few simple steps.
Log in to your FTX account. Navigate to the Wallet page by clicking on Wallet on page header, then on Portfolio.
Choose a subaccount from which transactions will be exported. You will need to export transactions for each subaccount.
Click on Deposits. Check the box Show time in UTC and then click Download CSV (cloud icon).
Click on Withdrawals. Check the box Show time in UTC and then click Download CSV (cloud icon).
Click on Fills. Then click Download CSV (cloud icon).
Go to the CoinLedger app. Select Add Account then choose the FTX tab on CoinLedger. Click on Upload File and drag each of your CSV files into the box to import your transactions.
And that’s it! Once you’re done, you can import transactions from other wallets and exchanges and generate a comprehensive tax report with the click of a button!
There’s no need to spend hours of time and effort to report your crypto taxes. CoinLedger can make your tax season stress-free.
Generate a free preview report and see for yourself why more than 300,000 investors across the globe trust CoinLedger.