How to file your UNUS SED LEO (LEO) taxes with Koinly
UNUS SED LEO (LEO) is a utility token for the Bitfinex exchange, offering exclusive benefits to users holding LEO tokens and using the iFinex ecosystem. But if you’re trading LEO tokens - you’ll need to calculate and pay any tax due. Don't worry, Koinly can help you calculate taxes for 400,000+ ERC-20 tokens, including LEO. Here's how.
Sign up to Koinly and choose your country and currency
Connect with Koinly to import all your LEO trades safely and securely.
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 LEO transactions taxed?
All crypto - including LEO tokens - may be taxable. But the tax you’ll pay depends on your transactions and where you live. Learn more in our crypto tax guides. Generally speaking, two taxes may apply to your LEO transactions:
Capital Gains Tax:Â When you sell or swap LEO tokens, you may need to pay Capital Gains Tax on any gain.
Income Tax: When you earn LEO tokens -for example, as a staking reward - this could be seen as additional income and you may need to pay Income Tax based upon receipt.
Can the IRS track my LEO tokens?
The IRS has shown increasing interest in crypto as it creeps closer to the mainstream, and as such, has an increasing focus on tackling crypto tax evasion.
While crypto is often thought of as anonymous, the reality is more like pseudonymous. Blockchains - excluding specific outliers like Monero - are public ledgers. All you need is an address and anyone can search through the transactions made relating to that address - including the IRS. All the IRS then needs to do is link you to a given address.
The IRS has dedicated agents trained to collect user data relating to cryptocurrency transactions to ensure tax compliance and also has a variety of methods to collect user data from crypto businesses - including 1099 forms and John Doe Summons.
All this said US residents cannot use Bitfinex. This restriction came in place after Bitfinex faced several legal issues in the US - including an $18.5 million settlement with the New York Attorney General's office over allegations iFinex had made false statements about the backing of Tether and after the US Department of Justice seized stolen Bitcoin following a large hack in 2016.
Learn more about how the IRS tracks crypto.
How to get LEO token tax documents
Preparing your crypto tax documents all depends on your tax office’s reporting requirements, but most commonly, you’ll report any gains, losses, or income from crypto as part of your annual tax return.
This starts with calculating your gains, losses, and income. You’ll need to identify each taxable transaction - so any time you sold, swapped, or earned LEO. Then calculate your capital gains, losses, and the fair market value of any income in your fiat currency on the day you received it.
Not only do you need to do this for your LEO tokens, but for every crypto asset you own, so it can get time-consuming fast. This is why most investors opt to use a crypto tax calculator like Koinly. Koinly can calculate your gains, losses, and income for more than 450,000 ERC-20 tokens - including LEO.
All you need to do is connect to Koinly and it’ll do the rest. Here’s how.
How to import LEO transactions to Koinly automatically
To import your LEO transactions to Koinly, you’ll need to connect any blockchain, exchange, or wallet with Koinly where you have LEO transactions.
There are a couple of options here and it will all depend on where you’ve traded LEO tokens. For example, if you’ve only traded LEO tokens on Bitfinex, you’d be able to sync your Bitfinex account with Koinly and all your LEO transactions will be imported. Find out how to connect Bitfinex with Koinly.
Meanwhile, if you’ve traded LEO tokens on other exchanges, you’ll need to connect these exchanges too. Or if you’ve held LEO tokens in non-custodial Ethereum or EOS wallets, you’ll need to connect to Koinly using your public address.
You can find steps on how to connect a variety of popular wallets to Koinly on our integration pages, but here’s an example of how it generally works.
In your wallet
Open or log in to your wallet
Select the blockchain you’d like to connect to Koinly - for example, Ethereum or EOS.
Copy your public address
On Koinly
Sign up or log in to your Koinly account and go to the wallets page
Search for and select the blockchain you’d like to connect - for example, Ethereum or EOS.
Give your wallet a name - for example - MetaMask or Ledger
Paste your public address
Select import
Important
Remember, you’ll need to do this for every wallet and blockchain you use to interact with LEO (and any other tokens!) in order to calculate your crypto taxes correctly
It’s really helpful to name your wallets when you’re adding them to Koinly. This can help you easily navigate your transactions in Koinly later on.
You may also be able to upload your transaction history to Koinly as a CSV file instead of connecting using your public address if you prefer, but this depends on the wallet you’re using. You can search for your wallet on our integration pages to find out more about how to get a CSV file from your Ethereum or EOS wallet.
Your frequently asked questions
What is UNUS SED LEO?
UNUS SED LEO (LEO) is a utility token issued by iFinex, the parent company of Bitfinex. Investors who own LEO tokens receive exclusive benefits like reduced commissions on Bitfinex trading pairs, monthly discounts on Bitfinex, and discounts on withdrawal fees.
What does UNUS SED LEO mean?
UNUS SED LEO is derived from a Latin phrase meaning 'one, but a lion'.
How do I get LEO tokens?
You can get LEO tokens by swapping them for other tokens on many centralized crypto exchanges including Bitfinex, Gate.io, and OKX.
What is the purpose of LEO tokens?
UNUS SED LEO tokens were originally created to help iFinex resolve its budget deficit. iFinex commits 27% of gross revenues to a buy-back scheme until no tokens remain in commercial circulation. LEO token holders receive a range of discounts on the Bitfinex exchange.
Is UNUS SED LEO a good investment?
This very much depends on your investment strategy. If you’re a frequent high-volume trader on Bitfinex, LEO tokens may offer you multiple benefits. However, you should always do your own research and understand the risks of investing beforehand.
What blockchain is UNUS SED LEO on?
LEO tokens are on both the Ethereum and EOS blockchains.
Is UNUS SED LEO safe?
UNUS SED LEO has been issued since 2019 with no notable issues and is a popular investment for investors using Bitfinex. However, your crypto is only ever as safe as you are. Notably, Bitfinex suffered a large hack in 2016, and investors should always follow best practices to store their crypto safely.
Where can I stake LEO tokens?
You can stake LEO tokens on a few centralized crypto exchanges - for example, by using Gate.io’s Lend & Earn product.
Do I have to report my UNUS SED LEO transactions to the IRS?
Yes. You’ll need to report any capital gains, losses, or income relating to your LEO tokens and other crypto investments to the IRS as part of your annual tax return. If you don't you may face severe penalties.
