That is irrespective of the purposeyou intend to use Kucoin. As a result, if you receive income from KuCoin, you must report it on your taxes. It is not a licensed service in the US. Many users say that they have some issues with customer service, withdrawals, and even market manipulation. To varying degrees, depending on the organization or platform you use, youll find yourselves in one of three scenarios. Automatically sync your KuCoin account with CoinLedger via read-only API. Situation 03: No Reports at All. Hopefully, you know the answer now. . KuCoin is one of the last standing TRUSTED central exchanges with no KYC required. At this point, youll receive your API Key and API Secret. 16. The Form 8938 filing requirement does not replace or otherwise affect a taxpayer's obligation to file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). Seeking an expert guide! By integrating with all of your cryptocurrency platforms and consolidating your crypto data, CoinLedger is able to track your profits, losses, and income and generate accurate tax reports in a matter of minutes. In the first case, as we clearly mentioned, the IRS has access to all of the information. Come to Innatemarketer for reviews and experts' answers to your finance, startups, marketing, and business questions. The exchange also claims to have the most advanced API on the market. However, there are a few ways that users can get this information. No manual work is required! To request the historical export please contact our. You must pay attention to the fact that just because they arent issuing those tax records right now. Now that you know about the situation briefly. KuCoin is not a US-based exchange. To purchase andexchange cryptos, you can use kucoins big exchange. My experience with KuCoin has been awesome. The reason behind the popularity of KuCoin is it's all-in-one services that include pretty much everything a crypto enthusiast would want. While KuCoin offers plenty of benefits, you still need to be aware of the risks it involves, especially since it's not a US-based exchange. However, there'll be a withdrawal limit of 5 BTC per 24 hours for unverified accounts. That would mean reporting trade history to the united states, which I'm sure the IRS would be interested in. For starters, any casual trading activity you perform on KuCoin or any other crypto exchange is liable for tax as it is selling one asset and purchasing another. So unless server level access is granted/acquired then it cant happen. Once youre finished, you can import your transaction history from other wallets and exchanges and generate a complete tax report with the click of a button., Dont wait until the last minute to file your crypto taxes. So, keep reading and learn the truth about it. First and foremost is to always practice good cybersecurity hygiene. Your email address will not be published. While KuCoin does not provide tax forms or documents, the company does provide two simple ways to export transaction and trade history. KuCoin, like many other cryptocurrency exchanges, does not report to the IRS. Examples include earning crypto from staking or an airdrop., For more information, check out our complete guide to cryptocurrency taxes., KuCoin gives its customers several different avenues to earn cryptocurrency income, such as staking and referrals. For this example, we will use Koinly which is a reputable tax program that is compatible with KuCoin. Examples of disposals include selling your cryptocurrency or trading it for other cryptocurrencies. Figuring out your cost-basis and keeping track of the tax liability as you trade is crucial if you want to reduce your tax burden. In years prior to 2021, Coinbase sent you a 1099-K tax form if: If you met all three of these requirements prior to 2021, Coinbase sent you AND the IRS a copy of 1099-K. Coinbase stopped issuing this form to customers after 2020. These software platforms have a variety of tools to calculate and file crypto taxes. The law is constantly evolving. In your KuCoin account, click on the profile in the upper right corner and select API Management from the dropdown list. Thus, it's a promising platform for every investor. The trouble with KuCoin's reporting is that it only extends as far as the KuCoin platform. Before making any financial decisions, get the advice of a trusted expert. seeing as you can't even export your Bot trades and margin trades are limited it seems unlikely the government will be able to make that much sens of the mess of data. An IRS file of the 1099B tax form you filled out was sent directly to the platform. Is KuCoin safe? By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. An excellent example is Coinbase. It is a Great Way of Saving Money and Trading. CoinLedger imports KuCoin data for easy tax reporting. Margin, P2P trading,and futures are all available on the platform. Given this, it is possible that creating an account will expose you to some dangers. Koinly helps with this by synchronizing your wallets and exchange accounts and showing you the profit/loss for every transaction! . KuCoin is a cryptocurrency exchange based in Hong Kong. It must be filed directly with the office of Financial Crimes Enforcement Network (FinCEN), a bureau of . Free Tether (United States Dollar Tether) coins on sign-up. Youll be able to get a complete record of your cryptocurrency transaction history across multiple exchanges and get a crypto tax report in minutes., Heres a simple step-by-step process to help you import all of your KuCoin transactions into the CoinLedger platform.. As mentioned above, some exchanges are providing spreadsheet downloads with your taxable trades. So you don't think that the IRS will see that a user has transferred X amount of coin to an Kucoin wallet and ask for those records? Step 5: Go to Your Coinbase Account. Upload a KuCoin Transaction History CSVfile to CoinLedger. Click on 'Create API' and enter a name and passphrase. Remember, youll recognize income on your staking rewards based on the fair market value of your coins at the time you receive them., This may present a tax reporting issue because KuCoin offers Soft Staking that gives users rewards on a daily basis. As a result, theyll know exactly what you bought and sold and the amount ofmoney you earned. The FBAR is designed to track foreign financial assets to prevent crimes like tax evasion. The IRS now requires reporting of gains and losses on digital assets. Capital gains tax: If you sell your cryptocurrency, you must pay capital gains tax, which is calculated by how much the price of your cryptocurrency has fluctuated since you received it. This site allows users to input their Kucoin trade history and then generates a tax report. However, this is likely to change in the near future. These systems are so popular because Binance is another fantastic example of this. It is relatively simple and convenient to report your KuCoin transactions to the IRS, as the platform allows the users to export all of the data of their transactions with a single click. If you're asking if TurboTax supports CSV file uploads from Kucoin, no, we do not. This organization is of the view that cryptocurrencies are classified as property for tax purposes; meaning that you incur capital gains and capital losses at any moment you trade, sell or dispose off your cryptocurrency. . They can also receive trading discounts and even lower withdrawal fees than otherwise. This allows your transactions to be read in directly from the blockchain. Wondering whether Coinbase reports to the IRS? Bitcoin and other cryptocurrencies are often traded on decentralized exchanges, which are exchanges that do not report their transactions to government authorities like the Internal Revenue Service (IRS). There is no one definitive answer to this question. Further, it has more than 300 trading pairs. It also now has a KuCoin app on both Android and iOS. After that it's DEXes. Similar to other cryptocurrency exchanges, KuCoin struggles to provide customers with complete tax records due to the transferable nature of cryptocurrencies. 1 YeaManJam 2 yr. ago May the odds forever be in your favor :) No really cause what your betting is that you can go back to fiat unnoticed, and maybe you can. So the question here is, do you need to worry about that if you are trading or investing with KuCoin? You need to report this even if you don't receive a 1099 form as the IRS considers this taxable income and is likely subject to self-employment tax in addition to income tax. That is specifically because they are not wanted to produce any US tax documents. Whilst KuCoin does not report to the IRS, it will comply if ordered to do so and does not remove the individual's responsibility to report their crypto taxes. Rating 3.5/5. If so, that indicates that IRS is not aware of the crypto transactions made from your profile. It is available in multiple countries including the US, UK, Germany, Austria and Switzerland. As to cryptocurrency, even though it is deemed property (not currency) by the IRS, it may still be reportable depending on how the property is being held. In this case, the burden of proof will be on David to prove that he bought his Bitcoin for $10,000. Form 1099-B: This form is used to share information about property/security disposals made through a broker. For example, if you held $5,000 of ETH on Bitfinex (Taiwan) and $6,500 of LTC on KuCoin (Hong Kong), you might need to file an FBAR for each account. This article will cover every important information related to this subject. If one or more of your cryptocurrency accounts share joint ownership, it's likely that you will need to report all of the owners on your tax form once FinCEN updates its regulations around virtual currency. Depending on your platform of choice, you could wind yourself in one of these stations. To pay taxes on KuCoin cryptocurrency trades, follow these steps to extract a tax report which can be submitted to the IRS. Ive traded several times my income on KUCoin. Kucoin does not currently offer tax reporting services. KuCoin is not a licensed cryptocurrency exchange in the United States. Koinly is a leading cryptocurrency tax platform that allows crypto investors to generate capital gains reports that are compliant with local laws. Also, if you intend to use the Trality tool, we strongly recommend you to read this full Trality bot review. In fact, it doesnt provide the IRS access to your transactions and payment details by submitting the 1099B form. Some crypto exchanges like Coinbase claim that they report directly to the IRS if the crypto income of any user exceeds $600, but this is only their own policy. Since KuCoin does not directly report to the organization, you will have to go through the manual process to get it done.