KuCoin is a cryptocurrency exchange that allows users to trade a variety of digital assets. KuCoin also offers its own native token, called KuCoin Shares (KCS), which gives users a variety of benefits on the platform.
KuCoin operates on a tiered fee structure, which means that the more KCS you hold, the lower your trading fees will be. holding KCS also entitles you to a share of the platform’s daily trading profits.
Crypto taxes can be a bit tricky to do on your own, but we’re here to help. This guide will show you how to calculate your KuCoin taxes, as well as how to file them with the IRS.
In order to calculate your KuCoin taxes, you will need to know the following:
- The price of each trade in USD
- The amount of each trade in cryptos or fiat currencies
- The fees charged by KuCoin on each trade
Do I need to pay taxes on my KuCoin trades?
If you made any profits from trading on KuCoin, then you will most likely need to pay taxes on those gains. Capital gains tax rates vary from country to country, so be sure to check with your local tax authority to find out what the rate is in your jurisdiction.
In the United States, long-term capital gains are taxed at a rate of 0%, 15%, or 20%, depending on your tax bracket. Short-term capital gains are taxed as regular income, at rates of 10%, 12%, 22%, 24%, 32%, 35%, or 37%.
If you are unsure about whether or not you need to pay taxes on your KuCoin trades, we recommend speaking to a tax professional.
How to download & export KuCoin trading history
To get started, you will need to gather all of your KuCoin trade histories. You can do this by logging into your account and going to the “Orders” tab. From here, you can export your trade history into a CSV file.
Once you have your trade history, you will need to input the information into a crypto tax calculator. There are a variety of different calculators available, but we recommend using CryptoTrader.tax.
Common issues with importing transactions from KuCoin
One common issue that users run into when importing their KuCoin trade history is that the fees are not always included in the CSV file.
If you find that your fees are not being imported properly, you can try manually adding them in. To do this, simply create a new “trade” in your calculator with the following information:
- Date of the trade
- The amount of crypto or fiat currency traded
- The price of the trade in USD
- The fees charged by KuCoin
Once you have added all of your trades, you will need to calculate your taxes. To do this, simply click on the “Calculate Taxes” button and select your tax filing status.
Does KuCoin report to the IRS?
At this time, KuCoin does not report to the IRS. However, the IRS has made it clear that it is the responsibility of taxpayers to report their crypto gains and losses on their taxes.
If you do not report your KuCoin trades on your taxes, you could be subject to penalties and interest charges. Therefore, we recommend speaking to a tax professional to make sure that you are properly reporting your crypto gains and losses.
How to generate a KuCoin tax report
Once you have calculated your taxes, you will need to generate a tax report. This report will contain all of the information that you will need to file your taxes, including your total gains and losses, as well as the amount of tax that you owe.
To generate a KuCoin tax report, simply click on the “Generate Tax Report” button and select the tax year that you want to file. You will then be able to download your report in PDF or CSV format.
And that’s it! You are now ready to file your KuCoin taxes. If you have any questions, we recommend speaking to a tax professional.
How to report your KuCoin taxes
Now that you have your KuCoin tax report, you will need to report your crypto gains and losses on your taxes. In the United States, this is done by filing Form 8949 with your tax return.
Form 8949 is used to report capital gains and losses from the sale or exchange of capital assets. This includes stocks, bonds, and cryptocurrency.
On Form 8949, you will need to report the following information for each of your KuCoin trades:
- The date of the trade
- The buy price
- The sell price
- The proceeds from the sale
- The cost basis
- The capital gain or loss
Once you have completed Form 8949, you will then need to transfer the information to Schedule D of your tax return. Schedule D is used to report capital gains and losses from the sale or exchange of capital assets.
Once you have completed Schedule D, you will then need to calculate your total capital gains and losses for the year.
Why is reporting crypto taxes so difficult?
The main reason why reporting crypto taxes is so difficult is because there is no central authority that tracks and reports crypto transactions. This means that it is up to taxpayers to report their own trades.
This can be a challenge for many people, as it requires them to keep track of all of their cryptocurrency transactions. Furthermore, they need to make sure that they are correctly calculating their gains and losses.