Crypto tax reports in an instant
Effortlessly track your cryptocurrency all in one place and download your IRS tax reports with a click.
Oh, did we mention it’s totally private?
Sounds great, does it support my wallets and exchanges?
Absolutely. Recap supports all exchanges and wallets automatically via API or CSV import.
Real-time sync to accounts on major exchanges like Coinbase, Binance, Gemini, FTX and Kraken
Automated support for Ethereum wallets including NFTs, DeFi & DEX trading
CSV import for all other exchanges, wallets and chains
Private by design - all account data is encrypted on your device and never accessible to us or third parties
Frequently Asked Questions
- Do you pay tax on crypto in the US?
- Yes, the IRS have confirmed that cryptocurrency is taxable as property in the US. Most cryptocurrency taxes fall into two categories: capital gains and ordinary income.
- How much tax do I have to pay on crypto in the US?
- The amount of Capital Gains tax that you pay depends on your earnings and how long you have held your assets for. You need to determine if you have held your crypto for short-term or long-term.
- How do I calculate my crypto capital gains in the US?
- Capital gain (or loss) is the difference between the cost basis of your cryptocurrency and the sale price. Capital gains should be calculated for each individual disposal made in the tax year, the sum of these gains is your total crypto capital gain for the year. Although this sounds simple, it can be a mammoth task for users with high volumes of trading activity. There are also complexities like sourcing reliable, consistent valuations for assets and application of IRS rules to be considered.
- How does Recap help with crypto tax in the US?
- Recap calculates your crypto taxes automatically! Once you have imported all of your transactions, Recap finds the fair market value for your assets at the time of your trades, applies all IRS rules and calculates your capital gains and ordinary income taxes.
- How do I avoid crypto tax in the US?
- There are no legal ways to avoid paying tax on your crypto gains in the US. Not reporting is considered tax evasion and can result in a penalty. There are, however, strategies that you can put in place to help to reduce your tax liability.
- Can the IRS track crypto?
- Although traditionally crypto is based around anonymity, it’s important to remember that transactions are visible on the ledger meaning that activity is traceable and trails can lead back to an individual. KYC is also evolving, exchanges are now collecting more user data and the IRS are known to have demanded user data and transaction data from them. We know that they are very focused on addressing tax evasion having launched Operation Hidden Treasure, with a team trained in virtual currency tracking in 2021.
- Do crypto exchanges report to the IRS?
- Yes. A growing number of crypto exchanges report to the IRS, although not all have publicly confirmed that they do. Many exchanges now send out 1099 forms to their users in January/February time summarising the previous tax year; these exchanges also send a copy to the IRS.
- Are crypto to crypto trades taxable in the US?
- Yes. Crypto to crypto trades are classed as a taxable event and should be treated for capital gains tax.
- Do I have to declare my crypto holdings to the IRS?
- Yes. On Form 1040 you must answer a question asking if you had any type of transaction related to a virtual currency during the year.
- Do I need to report crypto losses to the IRS?
- It is in your best interests to report your losses as they can be used to offset your gains. You can report losses on IRS crypto tax Form 8949.
- How do I report my crypto tax in the US?
- Once you have calculated your crypto taxes they should be reported on your annual tax return on forms Schedule D and Form 8949.