Wondering how to report taxes on your KuCoin transactions?
In this guide, we’ll break down everything you need to know about reporting your KuCoin taxes — whether you’re trading, earning staking interest, or taking out loans. We’ll also share a simple 5-step process to help you report your KuCoin transactions on your tax return in minutes.
KuCoin is a Seychelles-based cryptocurrency exchange that was founded in 2017. In 2018, the exchange received $20 million in funding from IDG Capital and Matrix Partners.
KuCoin is known for having an easy-to-use mobile app and supporting a wide range of cryptocurrencies. Currently, the exchange boasts 10 million global users and has supported more than 800,000 trades.
Yes. In the United States, crypto income is subject to income tax and capital gains tax.
Capital gains tax: If you dispose of your cryptocurrency, you incur a capital gain or loss depending on how the price of your crypto has fluctuated since you originally received it. Examples of cryptocurrency disposals include selling your cryptocurrency for fiat or trading your cryptocurrency for other cryptocurrencies.
Ordinary income tax: If you earn cryptocurrency, you’ll recognize ordinary income based on the fair market value of your crypto at the time you received it. Examples include earning crypto from staking or an airdrop.
For more information, check out our complete guide to cryptocurrency taxes.
KuCoin gives its customers several different avenues to earn cryptocurrency income, such as staking and referrals. Remember, you’ll recognize income on your staking rewards based on the fair market value of your coins at the time you receive them.
This may present a tax reporting issue because KuCoin offers ‘Soft Staking’ that gives users rewards on a daily basis. If you are using this feature, you may want to get started with crypto tax software that can help you track the historical fair market value of your cryptocurrency.
Currently, the IRS sees the act of taking out a loan as a non-taxable event. For more information, check out our guide to crypto loan taxes.
Similar to other cryptocurrency exchanges, KuCoin struggles to provide customers with complete tax records due to the transferable nature of cryptocurrencies.
Many crypto investors use multiple exchanges and wallets and often transfer cryptocurrency between them. KuCoin only has a record of transactions that took place on its own platform. As a result, it’s difficult for KuCoin and other exchanges to keep a complete record of your cost basis and capital gains.
Crypto tax software like CoinLedger can help. You’ll be able to get a complete record of your cryptocurrency transaction history across multiple exchanges and get a crypto tax report in minutes.
Here’s a simple step-by-step process to help you import all of your KuCoin transactions into the CoinLedger platform.
In your KuCoin account, click on the profile in the upper right corner and select API Management from the dropdown list.
Click the button labeled Create API.
Enter API Name and API Passphrase.
Set API Restrictions to General, so that access to your API Key will only allow platforms to see your transaction history.
Click No on IP Restriction so that CoinLedger can see your transaction history.
Remember to save API Passphrase in a safe place. It cannot be found later.
Enter Trading Password, Email Verification Code and 2FA Code.
At this point, you’ll receive your API Key and API Secret. You can then navigate to the KuCoin tab inside CoinLedger and select Auto-import. Enter your API Key, API Secret, and API Passphrase into the provided text boxes.
And that’s it! Once you’re finished, you can import your transaction history from other wallets and exchanges and generate a complete tax report with the click of a button.
Don’t wait until the last minute to file your crypto taxes. CoinLedger can make the process easier than ever. More than 300,000 investors across the globe use the platform to report transactions from centralized exchanges, DeFi protocols, and NFT marketplaces!