Wondering how you can report your taxes in the wake of the FTX.US bankruptcy?
In this guide, we’ll break down everything you need to know about your FTX.US taxes. We’ll break down how crypto transactions are taxed and whether you can write off your FTX.US losses on your tax return.
FTX.US is a subsidiary of FTX, a cryptocurrency exchange founded in 2018 by Sam Bankman-Fried.
In 2022, FTX filed for bankruptcy, causing millions of FTX and FTX.US customers to lose access to their cryptocurrency holdings.
If you permanently lose access to your cryptocurrency as a result of an exchange bankruptcy, you can claim a capital loss on your tax return. However, you will relinquish your right to potentially reclaim your crypto in the future.
At this point, it’s unclear whether FTX.US customers will re-gain access to their crypto. The bankruptcy process may take months or even years to sort out.
For more information, check out our guide to claiming your FTX losses.
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 400,000 crypto investors across the globe. With integrations to hundreds of blockchains and exchanges, CoinLedger can make your tax season stress-free.