Are you trying to report your FTX.US transactions to the IRS?
If you’re feeling confused, you’re certainly not alone. Cryptocurrency taxes can be confusing, even for seasoned investors.
In this guide, we’ll break down everything you need to know about your FTX.US taxes. We’ll explain how common FTX.US transactions are taxed (and share a simple method to report all of your cryptocurrency taxes in minutes).
FTX is a cryptocurrency exchange founded in 2018 by Sam Bankman-Fried. The exchange is now considered one of the most trusted brands for investors to buy, sell, and trade cryptocurrencies.
FTX.US is a subsidiary of FTX designed specifically to comply with American regulations.
FTX.US offers a wide range of services — including margin trading, NFT trading, and the ability to earn interest on select cryptocurrencies. The exchange is also known for its relatively low deposit, withdrawal, and trading fees.
Cryptocurrency is considered property by the IRS. As a result, it’s subject to capital gains and ordinary income tax.
For more information, check out our ultimate guide to cryptocurrency taxes.
Yes. FTX.US issues Form 1099-MISC in the event that a customer earns more than $600 of ordinary income on the platform.
In the future, FTX.US will be required to report more detailed information to the IRS. The 2021 infrastructure bill requires all exchanges to issue 1099 forms that contain information about capital gains and losses.
Margin and derivative trades are subject to capital gains and losses. However, calculating your gains and losses for margin trades can become complicated quickly due to the complexity of these transactions.
For more information, check out our guide to margin and derivative trading taxes.
Buying an NFT with cryptocurrency is considered a taxable event. You’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it.
Similarly, selling cryptocurrency for crypto or fiat is considered a taxable event. You’ll incur a capital gain or loss depending on how the price of your NFT has changed since you originally received it.
For more information, check out our ultimate guide to NFT taxes.
Earning cryptocurrency as interest is considered ordinary income subject to income tax. You’ll pay taxes based on your personal tax bracket.
Unfortunately, FTX.US and other exchanges don’t have complete access to the information they need to calculate your tax liability.
Because transferring cryptocurrency between different wallets and exchanges is so common, it can be difficult for exchanges to determine the original cost basis for acquiring your crypto. This information is needed to calculate your capital gains and losses.
With CoinLedger, you can file your FTX taxes in 5 simple steps.
Click the account icon in the top right corner of your FTX account.
Select API from the menu on the right.
Click Create Read-Only API Key.
Write down your API secret, as it will not be shown after this step is completed.
Within the CoinLedger app, navigate to Step 1. Import. Select Add Account then choose the FTX US tab. Click on Auto-Import then enter your API Key and API Secret into the correct fields. Once you’re done, hit Sync Transactions.
And that’s it! Once you’re done, you can import transactions from any other wallets and exchanges you’re using and generate your comprehensive crypto tax report with the click of a button.
Trying to file your FTX.US taxes? Get started with CoinLedger — the platform trusted by 300,000 crypto investors across the globe. With integrations to hundreds of blockchains and exchanges, CoinLedger can make your tax season stress-free.