Bitstamp Taxes Guide

Want to know how to take care of Bitstamp taxes? We’ve got you covered.

Bitstamp is one of the leading cryptocurrency exchanges in the market, supporting around 47 crypto assets, while you can trade crypto-to-FIAT (eg USD and EUR) and crypto-to-crypto (eg BTC).

Moreover, Bitstmap also offers a passive income investment tool, Earn Bitstamp, where you can get crypto interest.

Today, we cover how these investment products affect your Bitstamp taxes if you are in the US, UK or Germany.

Do you pay crypto taxes on Bitstamp trades?

In the US, crypto-to-FIAT or crypto-to-crypto trades are taxable events, and are subject to capital gains taxes. If you use Bitstamp to trade cryptocurrency against FIAT coins, you will have to identify and report your capital gains on each trade. In cryptocurrency trading, determining the gain is a bit more complicated, but it can be made easier with the help of crypto tax software like CoinTracking.

First, you need to determine the cost basis, i.e. the purchase price of the cryptocurrency you initially purchased. Let’s say you bought 1 Bitcoin at $50K in January 2021. This is the cost basis for your purchase. Then, in November 2021, I sold 1 Bitcoin at $67K. This is your sales revenue. The difference between sales revenue and cost basis is the capital gain ($17,000).

You need to make the same assessment when trading cryptocurrencies. in case if BitstampYou will trade cryptocurrency pairs for BTC.

Can You Deduct Bitstamp Fee Taxes?

In the US, yes, if it’s a trading fee. You can deduct the trading fee from your sales proceeds, which means your capital gains from the trade will be lower, effectively reducing the capital gains taxes on that trade.

However, if it is a fee for transferring your crypto between wallets (for example, a transfer fee), it is considered an investment expense, and it is not tax deductible for individual investors in the United States.

Do you pay taxes if you trade on Bitstamp in Germany?

In Germany, cryptocurrency trades are tax deductible if you hold them for more than 12 months before selling. If you have a gain of less than 600 euros, you do not need to pay income taxes. If you trade on Bitstamp and follow these two criteria, you will not have to pay income taxes. More countries are offering tax benefits to long-term owners.

Learn more about crypto taxes in Germany here Instructs.

Do you pay taxes if you trade on Bitstamp in the UK?

In the UK, if you trade cryptocurrency on Bitstamp and make a profit, you will be subject to capital gains taxes.

Any trade in crypto to FIAT or crypto to cryptocurrency is subject to tax in the UK. As a result, if you trade (for cryptocurrency or FIAT) on Bitstamp, you will have to pay capital gains taxes if you pass the annual tax credit allowance. See more details about UK Crypto Taxes.

There are several ways to export your transactions from Bitstamp and import them to CoinTracking. Watch this video for the steps:

Do you pay taxes from Bitstamp Earn?

Bitstamp earn It is a crypto interest investment tool that you can use to earn APY from Ethereum 2.0 or Algorand. If you lock the funds, you will receive crypto interest in the future.

The software is still not available to US customers, but if it becomes available, any crypto benefit you receive from it is considered a taxable event, subject to income taxes. You will need to determine the fair market value (in US dollars) of the bonus/interest when you receive it. Check tax guides upon receipt Staking crypto rewards And cipher utility.

In the UK, in most scenarios, you will also be taxed within miscellaneous income as an individual, with exceptions if you work or trade in a professional environment. Find out more here.

Does Bitstamp Report to the IRS?

Bitstamp serves US customers and can therefore report the information to the IRS when a “John Doe” subpoena is in place, for example.

How do I report Bitstamp taxes?

If you trade on Bitstamp, you will need to determine the gain/loss on each of your crypto trades and report it on Form 8949 in your taxes. It’s easiest to do this by importing your trades into a crypto tax software, such as CoinTracking, which tracks your costs/sales basis and calculates capital gains automatically.

In the future, if Bitstamp Earn is available to US customers, you will need it Transfer Your income from there (FMV for the cryptocurrency interest you received) on your income tax return.

Best Bitstamp Tax Calculator: CoinTracking

The best crypto tax software to import and track Bitstamp trades is CoinTracking.

You can import your trades using CSV or API, track your gains/losses, and generate tax reports according to your preferred method of accounting.

Beyond Bitstamp, CoinTracking is the complete crypto tax solution for:

Moreover, CoinTracking can easily categorize all your earnings from yield farming, liquidity pools, cryptocurrency storage, and much more.

Do you pay taxes on Bitstamp?

Yes. In the United States, you can be liable for the following taxes when using Bitstamp:

  • Cryptocurrency Trading for Other Cryptocurrencies (eg BTC): Capital Gains Tax

  • FIAT Cryptocurrency Trading: Capital Gains Tax

  • Receive interest from Bitstamp Earn (when available in the US): Ordinary Income Taxes

Dot matrix printers taxes with no errors: The complete US currency tracking service.

CoinTracking also offers a full service for US traders. A crypto settlement tax expert from Polygon Advisory Group, a leading US tax firm, will review your CoinTracking account, help fix any errors, and ensure your crypto tax reports are submitted flawlessly.

Do you have any questions about crypto taxes? Check out the best guides:

  1. Do you pay taxes when trading stablecoins?

  2. How is yield farming taxed?

  3. DeFi Taxes: The Complete Guide.

  4. How to save taxes with a Bitcoin IRA.

  5. Do you pay taxes to receive bitcoin tips?

  6. Uniswap . Tax Guide

  7. Is cipher wrap taxable?

  8. How do you calculate taxes at the average dollar cost of bitcoin?

  9. Do you pay taxes on stolen, hacked or lost cryptocurrency?

  10. FIFO for Crypto Taxes? The implications of accounting methods.

  11. NFT Taxes: The Complete Guide.

  12. NFT Guide 2021 (with taxes).

  13. Is bitcoin taxable? The Ultimate Guide to Taxes for 2021.

  14. Do You Pay Taxes on Bitcoin Debit Card Purchases?

  15. The most tax-friendly countries for cryptocurrency.

  16. How do you reduce your crypto taxes?

  17. Crypto tax loss harvest: Here’s what you need to know

This post is part of the Crypto Taxes AMA series. Follow the weekly AMAs on Twitter as our expert CPA Sharon Yip answers your crypto tax questions. You can download 30+ AMA Crypto Tax Report for free.

Disclaimer: All information provided above is for informational purposes only and should not be considered professional, legal or tax advice. You should do your own research or consult with a professional financial advisor when investing.

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