Why you can trust this guide
There is no one clear rule that says how every single one of your cryptocurrency transactions should be taxed. Instead, the IRS periodically releases guidelines to help you understand your obligations.
Our Head of Tax, Nick Waytula, reviewed these guidelines alongside our expert writing team to help produce this comprehensive guide to crypto gas fees.
In most cases of buying and selling cryptocurrency as a retail investor, you are participating in investing rather than trading. The two are treated differently for tax purposes.
The key difference between investing and trading – along with the different tax treatments, is how losses generated in the crypto-activity can be used.
In their guidance, HMRC have explicitly stated that they would expect it to be exceedingly rare that any crypto-activity constituting buying & selling crypto would be classified as “trading”.
If you are uncertain, speak to a tax advisor as there are always exceptions, including but not limited to, developing tokens and large scale mining.
You can be liable for both capital gains and income tax depending on the type of cryptocurrency transaction, and your individual circumstances. For example, you might need to pay capital gains on profits from buying and selling cryptocurrency, or pay income tax on interest earned when holding crypto.
A
B
C
F
G
M
N
O
P
S
T
U
At the time of writing gas price is 180 Wei and to do a trade on Uniswap cost around $100 in ETH. This is a significant amount for most users, and adding this to your cost basis is an important part in minimizing your taxes. But in most circumstances you will also need to consider the capital gains realized on the ETH you are spending for gas.
Example:
In the above example Satoshi sells $1,000 worth of SUSHI on Uniswap for DAI. To do this he pays $100 in gas using ETH. He originally bought his Sushi for $200, and his ETH for $30 each. Satoshi realized a profit of $800 by selling his sushi (1000 - 200), but he also had $100 worth of gas fees, so he overall realized gain is $700 (1000 - 200 - 100). However he originally bought ETH at $30, and at the time of the transaction ETH was worth $1000, so Satoshi needs to consider the gain in ETH. This would be calculated as $97 ((1000 - 30) * 0.1). As you can see there is a lot going on here.
Fortunately Crypto Tax Calculator is one of the few crypto tax software offerings to carefully consider this scenario. All you need to do is import your Ethereum public wallet address into our app, and we will automatically categorise all these transactions and handle this calculations for you. All you need to do is sanity check the results and you are sorted.
Le informazioni fornite su questo sito Web sono di natura generale e non costituiscono consulenza fiscale, contabile o legale. È stato preparato senza tenere conto dei vostri obiettivi, della vostra situazione finanziaria o delle vostre esigenze. Prima di agire in base a queste informazioni, è necessario considerare l'adeguatezza delle informazioni rispetto ai propri obiettivi, situazione finanziaria ed esigenze e chiedere una consulenza professionale. Crypto Tax Calculator declina ogni e qualsiasi garanzia, impegno e garanzia, espressa o implicita, e non è responsabile per eventuali perdite o danni di sorta (inclusi errori umani o informatici, negligenti o di altro tipo, o perdite o danni incidentali o consequenziali) derivanti da o in connessione, qualsiasi utilizzo o affidamento sulle informazioni o sui consigli contenuti in questo sito web. L'utente deve accettare l'esclusiva responsabilità associata all'uso del materiale presente su questo sito, indipendentemente dallo scopo per il quale tale uso o risultati vengono applicati. Le informazioni contenute in questo sito non sostituiscono la consulenza specialistica.
Everything you need to know to do your crypto taxes in Italy. Read our guide now.
A step-by-step walkthrough of everything you need to know about calculating your MetaMask crypto tax.
The complete guide to understanding and filing your DeFi taxes in the US.
We have developed an integration with Ethereum, to help automate your taxes and categorize all your Ethereum transactions. Follow this guide to import your Ethereum transactions.
Crypto Tax Calculator has integrated Binance into our platform to help users easily calculate their cryptocurrency tax obligations. Users can upload via an API or CSV import following the instructions in this guide.
Learn how Bitcoin is taxed in the U.S., the difference between short and long-term capital gains, and how timing your sale can cut your crypto tax bill.
Bitcoin is taxed as either capital gains or income tax depending on the transaction. Learn how to do your Bitcoin taxes with this guide.
Learn how Bitcoin is taxed in the U.S., the difference between short and long-term capital gains, and how timing your sale can cut your crypto tax bill.
Importa le tue transazioni e genera un'anteprima gratuita del report.
