Trying to report your Trust Wallet transactions on your taxes?
We know that crypto tax reporting can get difficult. Our tax team put together this guide to help you better understand the tax implications of using your Trust Wallet. We’ll cover the basics of cryptocurrency taxation and break down a simple step-by-step process to reporting your Trust Wallet transactions on your taxes.
Trust Wallet is a mobile software wallet that allows users to send, trade, receive, and hold crypto-assets. Users even have the option to buy cryptocurrency directly using their credit cards.
Currently, Trust Wallet serves more than 10 million users across the world and supports more than 50 blockchains including Ethereum and the Binance Smartchain.
Cryptocurrency used or traded on Trust Wallet or any other platform is taxed as property by the IRS and is subject to capital gains and ordinary income tax.
For more information, check out our complete guide to crypto taxes.
At this time, crypto wallets like Trust Wallet don’t provide tax reporting information to customers and the IRS. However, it’s possible that this will change in the near future.
The 2021 American infrastructure bill requires brokers that facilitate cryptocurrency transactions to send 1099-B forms to users and the IRS. At this time, it’s not clear whether wallets like Trust Wallet will be considered brokers.
It’s important to remember that all transactions on blockchains like Ethereum can be seen by the public. In the past, the IRS has partnered with contractors like Chainalysis to analyze the blockchain, match ‘anonymous’ wallets to known individuals, and crack down on tax evasion.
Unfortunately, it’s difficult for Trust Wallet and other wallet providers to issue tax forms to customers.
To accurately calculate your taxes, you’ll need a complete record of your cryptocurrency transaction history. However, Trust Wallet only has access to transactions that you conducted with your Trust Wallet address.
Because most crypto investors use multiple exchanges and multiple wallets, it’s very difficult for any one provider to generate a comprehensive record of your gains and losses.
Luckily, there is an easier way. Crypto tax software like CoinLedger can aggregate your transactions from different wallets and exchanges and help you generate a complete tax report in minutes.
Here’s a simple 5-step process to reporting your Trust Wallet taxes.
And that’s it! CoinLedger will automatically pull in your Trust Wallet transactions. Once you’ve imported your trades from your other wallets and exchanges, you’ll be able to generate a complete tax report with the click of a button.
Don’t wait until the tax deadline to file your crypto taxes. Import your Trust Wallet transactions into CoinLedger today and simplify the tax reporting process.
Sign up for free and generate a free preview report today.