Looking to report your Uphold transactions on your taxes?
Many crypto investors have trouble finding accountants and software solutions that can provide help with taxes. That means that reporting crypto transactions can turn into a struggle.
To help simplify the process, our tax team put together this simple guide on how to report your Uphold transactions to the IRS.
Uphold was founded in 2014 by Halsey Minor, who previously founded the media company CNET. Since its inception, the company has raised almost $75 million in funding.
Today, Uphold allows investors all over the world to invest in assets secured by the blockchain including cryptocurrencies, precious metals, and stocks. The platform currently supports more than 20 fiat currencies and more than 75 cryptocurrencies.
Cryptocurrencies are considered property and are subject to capital gains tax upon disposal and ordinary income tax when earned.
Capital gains tax: Every time you dispose of cryptocurrency, you’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it. Selling your cryptocurrency on Uphold is considered a disposal event.
Ordinary income tax: When you earn cryptocurrency, you’ll recognize income based on the fair market value of your cryptocurrency.
For more information about how cryptocurrency is taxed, check out our complete guide to cryptocurrency taxes.
Uphold has announced plans to release a debit card that offers rewards in USD and cryptocurrency.
While the IRS has not issued guidance on cryptocurrency debit cards, rewards for debit card purchases have long been considered non-taxable rebates.
For more information, read our blog post on how crypto debit cards are taxed.
Uphold issues 1099-B forms to customers and the IRS that contain details about disposals of cryptocurrencies and other properties.
If you do not report transactions that are contained on your 1099-B form on your taxes, it’s likely that your transaction will be flagged and you will be automatically sent Notice CP2000.
If you receive a Form 1099-B from Uphold, it’s important to note that the IRS also received a copy of this form.
Form 1099-B can contain inaccuracies if you’ve ever transferred cryptocurrencies into or out of Uphold.
Because investors often transfer cryptocurrencies between different platforms, it’s very difficult for exchanges to track original cost basis and gross proceeds for each individual coin. Unfortunately, this is information that’s needed to calculate your capital gains and losses.
Want to report your Uphold taxes with CoinLedger? Here’s how you can complete the process in 5 simple steps.
On your Uphold account, click on the Activity tab on the left-hand side of the wallet.
Click on the Document icon to the left of the Activity title.
Click the Generate Report button.
Check your email for the Transaction history request you just made and click Download.
Upload your transaction history file into the Uphold tab of CoinLedger app.
And that’s it! You’ll then be able to upload your transactions from other exchanges and wallets so you have everything in one place. Once you’re done, you’ll be able to generate complete capital gains and income tax reports based on all of your crypto transactions with the click of a button.
Don’t wait until the deadline to report your Uphold transactions. With CoinLedger, you can report transactions on Uphold and dozens of other exchanges in minutes. Join the 300,000+ investors who use the platform to simplify the tax reporting process.