If you’re using Daedalus to store, stake, receive or send ADA, chances are you’ll be thinking of crypto taxes before you know it. Good news! This tax reporting guide covers everything you need to know from crypto income to tax reports.
How to prepare Daedalus taxes
If you’ve been sending or receiving payments, staking or paying transaction fees on the Cardano network, you might need to declare your Daedalus crypto activity at tax time. Local tax authorities are cracking down on crypto tax evasion and they want to know all about your crypto income, profits and losses - so they can tax it accordingly. Sound daunting? It doesn’t have to be with the help of a crypto tax app - like Koinly. To get started - you're going to need your Daedalus transaction history.
How to download Daedalus transaction history
There are two ways you can get your Daedalus transaction history directly from your Daedalus account.
- Use the Daedalus tax report API with crypto tax software. The benefit of this method is that your Daedalus transaction history will be automatically imported to your chosen app. Here are our comprehensive instructions on how to connect Daedalus to Koinly.
- Export your Daedalus transaction history in a CSV file. You can then calculate your crypto taxes yourself or upload your CSV file to a crypto tax app.
Does Daedalus provide a tax report?
No, Daedalus does not provide a tax report to its users, but you can use crypto tax software to create one in minutes.
Does Daedalus provide a 1099 form to the IRS?
No. Daedalus does not issue 1099 tax forms. That doesn’t mean you won’t have to declare your crypto income though and in most countries staking rewards are considered additional income and taxed as such. Find out more about crypto 1099 forms in our blog.
Does Daedalus supply a financial statement?
No, but you can use import your Daedalus trading and transaction history to crypto tax software to generate one.
Daedalus CSV export
Daedalus provides a CSV export feature which lets you export your complete transaction history on Daedalus. To export your transaction history in CSV format simply log in to your wallet, select transactions, and export CSV. It’s that easy.
Daedalus tax API
You can also connect Daedalus with your crypto tax software using your public address. Just log into your Daedalus account, select more from the top menu and then select the icon on the right of your wallet public key to reveal your public address. Copy this and paste it into your crypto tax app when you're adding your Daedalus wallet.
Does Daedalus provide an end of year statement?
No, Daedalus does not provide an end of year statement, but if you connect with crypto tax software - you'll be able to generate one.
Does Daedalus report to the IRS?
No, Daedalus does not report to the IRS. You still may have to declare your crypto taxes yourself though. Remember that the general advice from CPAs currently is to report any staking rewards as income.
Does Daedalus report to other tax authorities?
Currently, Daedalus does not report to any tax authorities. Although this is a constantly evolving situation as local tax authorities are seeking to crack down on crypto tax evasion. You should be aware that other exchanges do share information with tax authorities, so your crypto activity might be identified if you interact with more than one exchange..
How to generate a Daedalus tax report
The fastest way to generate your Daedalus tax report is to connect your Daedalus Wallet to a crypto tax app - like Koinly. By connecting to a crypto tax app your tax report will be automatically generated using the information provided in your transaction history.
You can connect to Koinly and upload your Daedalus transaction history by connecting via API - the easiest - or by importing a CSV file of your transaction history. Whichever method you choose, after connecting Koinly will generate a tax report tailored to your country of residence.
Koinly is the best Daedalus tax calculator tool. Not only does Koinly import your Daedalus transaction history, but it also automatically calculates your Daedalus taxes in a format that makes sense for your country’s tax office. Which not only saves you time, but also from over-paying taxes.
In summary, here’s what Koinly can do for you:
- Import all your trades including purchases, sales, swaps, and rewards.
- Convert your transactions into your country’s currency at fair market value (this in itself is a massive time saver).
- Decipher which of your trades are taxable and which are not.
- Help you submit a clean and accurate report to your tax office.