One of the largest crypto exchanges worldwide - Binance helps millions of crypto investors buy, sell and trade crypto every day. As tax offices around the world - including the IRS, HMRC and the ATO - crack down on crypto, you might be left with a lot of questions about your Binance taxes and reporting. Get all the answers to your questions about Binance tax reporting, transaction statements, trade exports, profit and loss calculations and more.
How to prepare Binance taxes
Need to prepare your Binance taxes but have no idea where to start? Wherever you live, your tax office will want to know about all your transaction history on Binance, including your capital gains and losses, expenses and any income from your crypto investments. To do your Binance tax, you'll need your complete transaction history from Binance. Don't worry - this is easy to find, we'll walk you through it.
How to download & export Binance trading & transaction history
You can find your Binance transaction history within your Binance account (duh). There's two ways to do this.
- Use the Binance tax reporting API and crypto tax software like Koinly. If you use the Binance tax reporting API with crypto tax software - all your Binance transaction history will be automatically imported to your chosen crypto tax app. You can see instructions on Koinly & Binance API integration here or here for US users.
- Export Binance transaction history in a CSV file. You can download your Binance transaction history within Binance. This works slightly differently depending on whether you're using Binance or Binance US - so we'll cover how to export trade history on Binance for both.
For those using Binance.com - here's how to get your Binance trade history export. Log in to Binance and select wallet, then overview. Now go to your transaction history and select generate all statements. You'll also need to select a data range for your Binance transaction history. Please note, Binance only lets you export 1 year of trade history at a time. But you'll need your complete Binance trade history to calculate your crypto taxes correctly. Once you've selected your date range, hit generate. Repeat these steps until you have all your Binance transaction history.
For those using Binance.us - here's how to export trade history on Binance. Log in to your Binance US account and select your profile icon (top right corner!). From the drop down menu, go to settings then basic info. On the next page, scroll down to statements & history and select export statement. Pick your year and hit generate. Done! Like above, if you're using a crypto tax app - it's really important you download your complete Binance transaction history, so you might need to download multiple transaction statements for each year you've been using Binance. This is so your chosen crypto tax app can calculate cost basis accurately as well as your short and long-term capital gains.
Does Binance provide a tax report?
No, Binance doesn't provide a specific Binance tax report - but it is partnered with a variety of excellent crypto tax apps (like Koinly) that can take your Binance transaction report and use it to generate a tax report for Binance. This is easiest using the Binance tax report API - this takes your Binance transaction data and automatically imports it to your chosen crypto tax app. The Binance tax report API is read-only, so using it doesn't give Koinly any access to your Binance account beyond reading your transaction data for accurate Binance tax reporting.
Alternatively, if you'd rather avoid the Binance tax report API, you can download CSV file(s) of your Binance transaction history using the steps above. You can then either do your taxes manually by calculating your cost basis, capital gains and losses and any crypto income or you can simply upload your Binance CSV files to Koinly and let it generate your Binance tax report.
Does Binance supply a financial statement?
Yes. The Binance statement you need is your transaction history. This Binance account statement contains your complete transaction history and you can use it to generate a Binance tax statement.
You can see the steps on how to get a tax statement from Binance above, but remember - for Binance.com users, you can only generate Binance financial statements that cover a 3 month period maximum. So you will need to download multiple statements to cover your complete transaction history on Binance. Similarly, for US users, you may need to download multiple Binance account statements as the maximum period Binance can generate at a time is one year.
Once you've got your Binance statements, you can calculate your crypto taxes manually, or upload your CSV file(s) to a crypto tax app to generate a Binance tax statement in minutes.
How to generate a Binance tax form
There's two ways to generate a Binance tax form - manually or using a crypto tax app.
If you're doing it manually - your tax office want to know about all your taxable transactions on Binance. This includes anytime you made a capital gain or loss by selling, swapping, spending or gifting crypto (in most countries). It also includes any time you made additional income from crypto - for example, through mining, staking, airdrops and so on. You'll then need to take all this information and input it into your tax return. This is a lot of work - especially if you've got a lot of trades on Binance.
Instead, use a crypto tax app to generate your Binance tax forms. Simply use the Binance tax API or download a CSV file of your Binance transaction history and upload it to Koinly. Koinly then identifies all your taxable transactions and generates a Binance tax form. It can even generate pre-filled tax reports based on your location, for example a pre-filled IRS Form 8949 and Schedule D.
Binance CSV exports
Need to get your Binance CSV export for your taxes? Easy. Log in to Binance and export your Binance CSV file by going to wallet, then overview. Find your transaction history and select generate all statements to get your Binance trade history CSV. Remember, you'll need your complete Binance trading history, so you may need to export multiple CSV files.
If you're using Binance.us - go to settings, then basic info. Find statements & history and select export statement to get your Binance CSV export.
Binance tax API
If you're using a crypto tax app - it's much easier to grab your Binance tax API instead. On Binance.com - you can generate a Binance tax API on the API management page. Then just copy and paste your API key and API secret from Binance into Koinly.
If you're using Binance.us, the steps to get your API on Binance are a little different. Go to your API management page on Binance and create a new API. Once you've generated it, select edit restrictions and uncheck enable spot and margin trading and enable withdrawals - Koinly only needs read-only access to your Binance US account. You should also check unrestricted for the IP access restrictions. Then just copy and paste your API key and API secret from Binance into Koinly.
Does Binance provide an end of year statement?
Binance won't provide you with an EOFY statement, but you can download a CSV file of your Binance trade history which work as a Binance end of year statement. Follow the CSV instructions above to generate this statement. Remember, you'll need to download multiple files for Binance.com users, while Binance.us users can easily download a complete statement of their Binance transaction history for the last financial year.
Does Binance report to the IRS?
In short, yes.
Most investors know Binance.com stopped operating in the US due to regulatory issues with the IRS and launched Binance.us as a solution. Binance US complies with the IRS to share customer information based on the KYC identification data provided when you set up your Binance account. Previously, Binance used to send out a 1099-K form to US investors and the IRS, however they have now stated that they will no longer be doing this. You can see the full statement from Binance US on their site or below:
"Previously, Binance.US took the position that it was a Third Party Settlement Organization (“TPSO”) under Section 6050W of the Internal Revenue Code and accordingly, filed Forms 1099-K for certain transactions settled on the exchange. After further evaluation and general indications from the IRS on the intended direction for future reporting, Binance.US has decided not to issue Forms 1099-K for customers on the exchange for the tax year 2021 and beyond."
While Binance US might not be sending out 1099-K forms, the IRS is taking a hard stance on crypto tax evasion. They can request your data from any larger crypto exchange operating in the US. The best way to remain tax compliant with the IRS is to report your crypto taxes accurately.
Does Binance report to tax authorities?
So we know Binance may report to the IRS, but does Binance report to other tax authorities like HMRC, the ATO and the CRA?
Again, in short - yes. The majority of tax authorities around the world are taking a similar hard stance on crypto tax evasion. They're working with major exchanges operating in their country to share KYC information and ensure taxpayers are paying their fair share. As Binance is the largest crypto exchange worldwide, it is very likely they have been contacted by multiple tax authorities to share customer information.
If you’ve been wondering is Koinly a Binance tax calculator tool, the answer is, yes! Not only can Koinly import Binance transaction history, but Koinly can also calculate your Binance taxes in a format that makes sense for your country’s tax office. As a Binance tax calculator, Koinly is able to do a bunch of impressive tasks that save you time and can even save you from paying too much taxes.
- Koinly will import all your Binance trades including purchases, sales, swaps, income and more!
- Koinly will then convert your Binance transactions into your country’s currency, at fair market value. This in itself is a massive time saver.
- Finally, Koinly works out which of your Binance trades are taxable, and which are not - calculating your Binance gains/losses, crypto income and more. All of this is really important for being able to submit an accurate Binance tax return to your tax office.
Sign up free and try our Binance tax software today.