How to file your r/Cryptocurrency Moons taxes with Koinly
r/Cryptocurrency Moons (MOON) are ERC-20 tokens on layer-2 rollup Arbitrum Nova and the official cryptocurrency for the r/CryptoCurrency subreddit! Redditors earn MOONs for posting quality content to the subreddit, but as you can also trade and sell MOONs, you might have a surprise tax bill in store! Don't worry, Koinly can help you calculate taxes for thousands of ERC-20 tokens, including MOONs. Here's how.
Sign up to Koinly and choose your country and currency
Connect Aribitrum Nova with Koinly to import all your trades safely and securely - including ERC-20 tokens like MOON.
Koinly identifies the cost basis of your tokens and coins, as well as your taxable transactions
Koinly calculates any capital gains, losses, and income from your taxable transactions
Koinly generates your crypto tax report - ready to help you file with your tax office, or hand it over to your accountant.
How are r/CryptoCurrency Moons transactions taxed?
Reddit Moon taxes are a controversial subject, to say the least - especially when it comes to the taxes that may apply. Your taxes will depend on where you live, so you should check out our crypto tax guides for more information about where you live, but generally speaking - two taxes may apply to your crypto.
Capital Gains Tax:Â When you swap or sell Reddit MOONs and make a gain, you may be liable to pay Capital Gains Tax on that gain.Â
Income Tax: It isn’t clear whether earning Reddit MOONs is subject to Income Tax, although the conservative approach would be that it is. Although Reddit Moons are a kind of governance token and the issuer (Reddit) states the value is not monetary… the reality is that they do have a market value as you can sell and swap Reddit Moons. As well as this, the IRS (and other tax offices) have made it clear that airdrops of crypto are viewed as income and subject to Income Tax upon receipt based on the fair market value at the time of the trade. As such, when you earn Reddit MOONs, you may be liable to pay Income Tax upon receipt.
Can the IRS track my Reddit MOONs?
The IRS - unsurprisingly - hasn’t issued any specific guidance on Reddit MOONs and taxes. Whether that means they’re not paying attention to Reddit MOONs, who knows.
As with all cryptocurrencies and tokens, excluding opaque blockchains like Monero, the public ledger is just that… public. If the IRS can link your identity to a given wallet or transaction - for example, through KYC data provided by centralized exchanges - then they may well know about your Reddit MOONs. As always, we recommend a conservative approach to crypto taxation to avoid provoking the ire of the IRS and potential audits or crypto tax penalties.
How to get r/Cryptocurrency Moons tax documents
Generally speaking, you’ll need to report any capital gains or income from Reddit Moon investments to your tax office as part of your annual tax return.
To do this, you’ll need to identify the fair market value of any Reddit Moon on the day you received them (and potentially report this as income) and any subsequent capital gains or losses from when you’ve swapped or sold Reddit Moons.
If you’re thinking that sounds time-consuming, you’d be right - which is why most investors opt to use a crypto tax calculator like Koinly. Koinly can calculate your gains, losses, and income for hundreds of thousands of tokens - including Reddit Moons!
All you need to do is connect your wallet to Koinly and it’ll do the rest. Here’s how.
How to import r/CryptoCurrency Moons transactions to Koinly automatically
To import MOON transactions into Koinly, you’ll need to connect each wallet you use to interact with MOON tokens to Koinly.Â
This is really easy to do, you just need your Arbitrum Nova public address - but remember, you’ll need to do this for every wallet you interact with Reddit MOONs with in order for Koinly to correctly identify your cost basis, transfers, sales, swaps, and more.Â
You can find steps on how to connect a huge variety of popular wallets to Koinly on our integration pages. Once you have your public address, it's as simple as this on Koinly:
Sign up or log in to your Koinly account and go to the wallets page
Search for and select Arbitrum Nova
Give your wallet a name - MetaMask Arbitrum Nova
Paste your public address
FAQ
What are r/CryptoCurrency Moons?
MOON is the official cryptocurrency of r/Cryptocurrency - a subreddit with more than 6 million members! Reddit MOONs are a community reward and kind of governance token users can earn for participating in r/CryptoCurrency and generating high-quality content for the subreddit.
How to buy r/CryptoCurrency Moons?
You can earn MOONs by participating in r/CryptoCurrency. Or if you don’t want to earn MOONs by participating in the community, you can swap MOONs for other tokens on decentralized exchanges like SushiSwap, as well as buy MOONs with stablecoins on a select number of centralized exchanges including MEXC and Gate.io.
What blockchain are r/CryptoCurrency Moons on?
r/CryptoCurrency Moons are traded on a layer-2 rollup - Arbitrum Nova.
Are Reddit Moons safe?
Reddit Moons are a long-standing, decentralized, and community-backed project with a fairly large group of hodlers. But as with all cryptocurrencies, investing comes with inherent risks around price volatility and you should always be wary of scammers and keep your tokens in cold, offline storage where possible.
Are r/CryptoCurrency Moons a good investment?
r/CryptoCurrency MOONs are a popular cryptocurrency for Redditors actively participating in the r/CryptoCurrency subreddit - who earn MOONs simply for doing what they would be doing in their free time anyway. As you can earn these for free, it may make MOONs an appealing option for those interested in cryptocurrency investments. As always, you should always do DYOR before purchasing any cryptocurrency to understand the inherent risks around price volatility, scams, illiquidity, and more. Koinly is not a financial adviser.
Where can I stake MOONs?
If you’d like to earn passive income on your MOONs, you can add them to MOONs liquidity pools on specific dexes. But beware, this comes with tax implications - learn more in our DeFi tax guide.
Do I have to pay taxes on r/CryptoCurrency Moons?
Although they’re a governance token, as they have a real market value, it’s likely your Reddit Moon tokens are going to be subject to tax - though it’ll vary depending on where you live and how sympathetic your tax office is. For example, in Australia, airdrops are only taxed as income in specific circumstances and mining income is tax free upon receipt provided it is hobby income, but meanwhile, the IRS takes far harsher stances, saying all airdrops are subject to tax upon receipt and you’ll pay Capital Gains Tax whenever you sell, swap, or spend any token - regardless of utility.
How to get MOONs on Reddit?
Put simply, MOONs are earned through upvotes on Reddit - specifically in the r/CryptoCurrency subreddit. You'll earn MOON tokens based on the content you create for the subreddit - but more importantly, the quality content you create... because the more upvotes you get, the more MOONs you'll receive.
What do MOONs do on Reddit?
You can use Reddit MOONs to vote in governance polls, tip other users, advertise in r/Cryptocurrency, purchase premium membership, redeem Reddit coins, swap them for other ETH tokens, and more.
How do I create a vault on Reddit?
It’s easy to create a vault for your MOONs! Just subscribe to r/CryptoCurrency in the Reddit app and then select your avatar. From the new menu, select vault and then follow the instructions in the app to set up your Reddit Vault.
