Key takeaways
- Tax agencies can track your %blockchainName% transactions, so it’s essential to file your crypto taxes properly. You owe tax any time you sell, swap or dispose of your crypto for a profit.
- Wallets like %blockchainName% do not issue tax reports, so you will need to gather the data and calculate taxes yourself manually.
- Alternatively, you can use crypto tax software like Summ, which syncs with %blockchainName% and your other crypto accounts to calculate your crypto tax.
%blockchainName% is a popular crypto wallet that lets you store and manage your cryptocurrency. If you made trades, earned rewards, or interacted with DeFi using %blockchainName%, you may need to report those transactions on your taxes.
%blockchainName% does not automatically report, calculate, or issue tax forms for you.
The good news is that Summ makes calculating your %blockchainName% and crypto taxes quick and easy by automatically importing your data to generate a comprehensive tax report.
Quick steps
1. Sign up or log in to Summ.
2. Select %blockchainName% in the Accounts list.
3. Follow the instructions on screen to sync your %blockchainName% transactions from the blockchain.
4. Let our software calculate your gains, losses, and income.
5. Download your tax report and file it with your taxes.
Disclaimer: The information in this guide is general in nature and not written for a specific tax jurisdiction or audience.
Do I need to file %blockchainName% taxes?
If you have been using %blockchainName% to trade crypto or use DeFi, then you will likely need to pay tax on those transactions.
The exact tax you owe will depend on whether your transactions are classified as capital gains or income. Check our list of local crypto tax guides for details on how cryptocurrency is taxed in your jurisdiction.
Do I have to pay tax if I only sent crypto to %blockchainName% but didn’t sell?
If you sent crypto to your %blockchainName% wallet and paid transaction fees in crypto (such as Ethereum Gas), then that transaction is a taxable event.
This is because you are taxed any time you dispose of your crypto.
When you pay a network fee in crypto, it is treated as though you sold (i.e., dispose) of your crypto. So even if you only paid a small fee, you will still need to pay a small amount of tax on that transaction.
Summ makes it easy to calculate the total tax owed from your %blockchainName% transactions over the tax year.
What %blockchainName% transactions are taxable?
These are how some common transactions using %blockchainName% are taxed:
| Event |
Tax implication |
| Selling %blockchainCode% |
Capital gains tax |
| Crypto-to-crypto swaps |
Capital gains tax |
| Rewards from staking, interest or yield |
Income tax |
| Selling NFTs |
Capital gains tax |
| Providing liquidity to DeFi pools |
May involve multiple taxable steps |
Most countries typically tax proceeds earned from selling investments differently from money earned as income. In crypto, you may be subject to both capital gains and income tax, depending on the nature of your transaction.
Summ categorizes these events for you, based on your tax jurisdiction. This helps ensure that you pay the correct tax rate based on your %blockchainName% transactions, and receive any sort of discounts or allowances based on your local tax rules.
Capital Gains tax events from %blockchainName%
Whenever you dispose of crypto using %blockchainName% you are charged capital gains tax.
Disposals include things like selling crypto, swapping crypto-to-crypto, depositing crypto into DeFi, or paying network fees using crypto.
If the value of the crypto at the time of disposal is higher than when you acquired it, you have a taxable capital gain.
If it’s lower, you have a capital loss (which can often be used to offset other gains).
Summ will automatically calculate these gains and losses for each trade using your imported transaction data. It will account for fees according to your local tax rules.
Income tax events from %blockchainName%
If you received crypto as a reward for activities such as staking, lending, or yield farming – those tokens are usually considered income.
The value of the crypto at the time and date you received needs to be reported as income. It also forms the cost basis if you later sell the asset.
Summ will automatically categorise income tax events and treat them according to your local tax rules.
Supports complex activity
Trading on the wild side of crypto? Your activity is supported, no matter how far you’ve fallen down the rabbit hole.
Be confident in the numbers
Easily see what’s going on across all your wallets and exchanges so you can make the best decisions at all times.
Make compliance a breeze
Fully automated from start to finish. Seamlessly import all your transactions, follow the automated workflow and get your audit-proof tax reports with ease.
How to calculate your %blockchainName% taxes with Summ
1. Import your data
First, you will need to import your %blockchainName% transaction data to Summ. Here’s how:
Sync via API
- In Summ, click “Add Account” and select %blockchainName% or the relevant blockchain (e.g., Ethereum, Solana).
- Copy your wallet’s public address.
- Paste your address.
- Summ will scan the blockchain and import all your taxable events: trades, transfers, airdrops, NFT sales, staking rewards, yield farming etc.
- Do this for each address in your wallet.
Upload CSV
If you have a CSV export from a blockchain explorer or the %blockchainName% software, you can upload it manually. However, using the API sync method is usually simpler.
- In Summ, click “Add Account” and select %blockchainName% or the relevant blockchain (e.g., Ethereum, Solana).
- Click Import %blockchainName% CSV to upload your transaction data. Choose your file using the browser or drag and drop it into the window.
- Click Import %blockchainName% CSV to complete the upload.
- Verify the transaction details match your expectations from your %blockchainName% activity. Summ will alert you if any data seems missing or if there are errors in the file.
Note: If you downloaded your CSV from a block explorer, then you will need to upload a CSV for each public address you have in the wallet.
2. Generate your tax report
Once your %blockchainName% data is imported to Summ, you can calculate your taxes with a few clicks.
- Import accounts.
Add any other exchange accounts, wallets or transaction data to Summ. You will need to upload your entire crypto transaction history for an accurate report. This includes all wallets, blockchains and exchange accounts. - Review transactions
While Summ does the hard work for you, it may flag some missing data or errors, which you will need to review to ensure accuracy. - Get your tax report
Generate a comprehensive tax report ready for your accountant or local tax authority.
Need help? Click the chat icon in the bottom right corner to start a live chat with our expert customer service team. Otherwise, try our Getting Started Guide for an overview of how the platform works.
How to file your %blockchainName% tax report
1. Review your tax report
After importing, you can generate a tax report for %blockchainName% and any other accounts you linked. This report will detail your net capital gains, losses, and income from crypto for your chosen financial year.
Review it to make sure everything looks correct. If something looks off, return to the Review tab to ensure all transactions are categorized correctly; check the Accounts tab to ensure all your accounts and their transactions have been added.
2. Download and complete the necessary tax forms
Summ can produce specific forms or summaries needed for filing. Simply check the options in the Downloads section of the tax report and choose the one you need.
For example, if you live in the US, it can produce a report ready to upload to TurboTax, as well as forms like Form 8949 and Schedule D that are pre-filled and contain the relevant information for crypto.
Summ’s reports are designed to be tax office compliant and make this straightforward.
3. File before the deadline
Make sure you file your taxes before the deadline in your country. Properly reporting your %blockchainName% crypto activity will keep you compliant and help you avoid any penalties.
Frequently Asked Questions about %blockchainName% taxes
What is the best crypto tax software for %blockchainName%?
We may be slightly biased, but we think Summ is the best tax software for %blockchainName%.
Summ analyses all of your %blockchainName% transactions to calculate capital gains, income and expenses. You can add as many accounts as you like from other supported blockchain, exchanges, wallets and defi protocols, which streamlines the tax process, saving you from a headache.
There’s no need to worry about meeting the reporting standards of your local tax authority either. Summ generates tax reports that comply with the requirements of numerous tax authorities, including the IRS, HMRC, ATO, CRA, and many more.
With a single account, you have all your transaction data in one place, and the heavy lifting will be done for you for years to come.
But don’t just take our word for it. Summ has a 4.6-star rating on Trustpilot, with countless positive reviews. It is trusted by accountants worldwide and is the official tax partner of Coinbase and MetaMask, two of the largest crypto platforms in the world.
Does %blockchainName% share data with tax authorities?
Most wallet providers don’t directly report your transactions, because they are just software interfaces that let you interact with the blockchain. However, data stored on a blockchain is public, so authorities can see on-chain activity very easily.
What if I only use %blockchainName% to store crypto I bought on an exchange?
Even if you only use %blockchainName% for storage and not trading, you may still owe taxes. This is because most blockchain transactions are taxable events, as you need to sell a bit of crypto to pay for network fees. So you will likely owe a small amount of tax on those transactions in the tax year they were made.
How do I add multiple %blockchainName% addresses?
Simply add each address in Summ. The software will combine everything for one complete tax report.
Where can I find %blockchainName% tax documents?
%blockchainName% don’t provide tax documents. Instead you need to use crypto tax software like Summ or download all of your %blockchainName% from a block explorer and calculate your taxes manually.