How to Prepare Your Crypto Taxes with Bittrex
05 May 2020, by Bittrex Team
It’s officially that time of the season again – Crypto Tax Time!
This guide is solely to help you pull the information from Bittrex necessary for your taxes. You are encouraged to consult a tax professional if you need personalized advice.
Failing to report your earnings could result in several penalties, including criminal prosecution and large fines.
If you did any of the following, you must report your activity to the IRS.
- Received coins through an airdrop or a fork
- Traded or invested cryptocurrency
- Received an income in cryptocurrency
- Converted cryptocurrency to fiat
- Made a payment with cryptocurrency
You do not need to report activity if you:
- Purchased but did not sell any cryptocurrency
- Gifted cryptocurrency to someone (under $15,000/person)
- Purchased cryptocurrency with a Solo 401(k) or Self-Directed IRA
- Transferred between exchanges or wallets
It’s very simple to access your data from Bittrex.
You must be logged into your Bittrex account to access personal information and records for Trading (Orders), Deposits, and Withdrawals. Below are the following items you need to collect:
Your personal information can be found on the Account page under Profile.
Trading Records (Buy & Sell Orders)
Bittrex will only display a limited amount of your order history on our website. To pull your full order history, go to the homepage and click Orders. For your full order history, click on the Download History button.
Withdrawal & Deposit Records
To access your withdrawal & deposit records, go to the homepage and click Holdings.
Under Holdings, click on Withdrawals and navigate to your Withdrawal History or Deposit History to access your record of transactions. You may copy or screenshot this information.
Since Bittrex only displays a limited amount of deposit and withdrawal history, you may file a support ticket to access a full copy. When submitting a ticket, select the General Support Request form. It may take up to a week to fulfill the request.
Once you have accessed all necessary documents, you will first need to determine your Cost Basis.
You will have to track how much you paid for coins separately. Your crypto cost basis includes the purchase price plus other costs associated with purchasing the cryptocurrency, such as fees or commissions from the exchanges. You can calculate this simply by doing the following:
(Price of Crypto + Any other fees) / Quantity of Holding = Cost Basis
Next, you will need to determine and calculate any Gains or Losses
- Go to your Trading History file and group all sales of like coins together (all ETH sales, all BTC sales).
- Determine the USD value of the coins on the day of the sale, you can use coinmarketcap to do so.
- Sum the USD value of all the coins sold during the year together and subtract the cost basis you calculated previously.
It can be difficult to keep track of all this information, which is why there are tools out there which can automatically link to your Bittrex account to calculate your basis, gains, losses, and tax liability. We strongly recommend doing your research before using any 3rd party tools and advise caution when sharing data through an API. Be sure to go through our Account Security Checklist for more information on Bittrex security resources.
Since Bittrex does not provide tax reports, you will have to report each trade and transaction on Form 8949. You will need a description of the coin sold, date acquired, date sold, proceeds, cost, and gains or losses. Once you have input this information, calculate the totals and transfer this amount over to the 1040 Schedule D.
Bittrex does not provide any recommendations, consultation, or evaluations for legal advice or regulatory compliance. We do not provide tax forms or reports, as well as tax planning / filing, financial services, and trading or investment advice. Customer identification, personal information, and records of deposits, withdrawals, and trading activity are confidential except as required by law or court order.