According to coinmarketcap, Binance stands at the first position among top exchanges for spot trading.
This speaks volumes for crypto traders. A large number of people trade cryptocurrencies on Binance.
Since cryptocurrency is also included in the taxation processes, we have discussed different processes you need to go through to file your taxes if you trade your cryptocurrencies on Binance.
Moreover, we have answered frequently asked questions related to filing your taxes using the Binance exchange.
Calculate your Cryptocurrency Taxes on Binance
Filing your taxes with Binance is way easier than you think. The exchange offers you the flexibility to integrate API with any third-party tool to automatically file your taxes.
For example, if you use CoinLedger, you can integrate your software with a read-only API. By integrating, you can import all of your transaction records and the required form you need to file for your taxes.
Furthermore, you can send out all records to your cryptocurrency CPA to file your taxes effectively.
Frequently Asked Questions about Filing Crypto Taxes using Binance
Does Binance Report to the IRS?
Binance does not report any crypto asset to the IRS. However, Binance.US does report to the IRS.
It is also important to note that Binance has a separate website for the traders based in the U.S. It’s called Binance.US.
If you receive a crypto income of more than $600, Binance.US will send Form 1099-MISC to report your taxes.
Do We Need to Report Binance Trading on FBAR?
Before 2020, if you had an income above a threshold defined by FBAR, you would have to declare your income on FBAR.
Since Binance does not hold any significance for the U.S. traders now, you report your income under Form 1099-MISC if it exceeds $600 on Binance.US.
Which Cryptocurrency Tax Software Should I Use to Integrate with Binance?
Some of the popular software are as follows:
We have also written a detailed article explaining all cryptocurrency accounting software.
How Will my Cryptocurrencies be Taxed on Binance.US?
They will be taxed similar to the routine rules by the IRS. There are no special rules for the Binance.US exchange. The IRS takes cryptocurrencies as a commodity.
You will be taxed on capital gains and any income you receive from mining, staking, or any other source.
Can Binance Provide my Crypto Data for Taxation?
Yes and no! Yes, if you only trade cryptocurrency on Binance. No, if you trade cryptocurrency on other platforms as well. For example, if you trade crypto on Coinbase, you cannot extract data using Binance.
Get Help to File Your Cryptocurrency Taxes
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