Are you investing in ADA? Whether you're trading, staking or farming ADA, it's incredibly easy to do your Cardano crypto taxes with Koinly.
Before you can connect Cardano to Koinly you'll need to find your Cardano extended key from all the wallets you use for ADA. Koinly supports all the top Cardano wallets! Popular ADA wallets include:
Don't see your wallet? You'll find easy to follow steps on how to get your Cardano public address from hundreds of wallets here.
Don't forget, in order for Koinly to calculate your crypto taxes correctly you’ll need to add your public address from every wallet you use for Cardano. As well as this, it's your extended key that you'll need to enter into Koinly. Most Cardano wallets provide this, but if not you can always import your Cardano transaction data by uploading a CSV file instead.
Good to Know
1. The API import may take a few minutes which is normal.
2. Once Koinly and Cardano are connected you may notice a yellow circle next to the Cardano icon in your Koinly Wallet. Koinly has calculated your balances based on the imported transactions but the balances reported by the API aren't quite matching up. Don’t worry, this is easy to fix! See our support article here for quick troubleshooting steps.
If you prefer to use CSV files to integrate your Cardano wallets with Koinly, you can. Here's how.
Depending on the ADA wallet you’re using, you may or may not be able to export a CSV file of your ADA transaction history directly from your wallet. You'll find easy to follow steps on how to get a CSV file from a number of crypto wallets here.
If your wallet does not provide downloadable CSV files, you may be able to use a blockchain explorer to generate a CSV file instead.
Good to know
1. When downloading your CSV files, check that the file covers your full trading history.
2. Remember to download and upload CSV files for all your ADA Wallets.
3. Don't forget to tag your airdrops and forks. This will ensure that they show up correctly as income on your Cardano tax reports.
Problems connecting Cardano and Koinly? No worries - we're here to help:
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ADA staking rewards tax depends on where you live. However, generally speaking, you'll pay Income Tax upon receipt based on the fair market value of your ADA tokens in your fiat currency on the day you receive them.
Airdrops are taxed differently depending on where you live. However, generally speaking if you receive an ADA airdrop as a reward, you'll pay Income Tax upon receipt and Capital Gains Tax on any gains if you later dispose of your ADA tokens by selling, swapping or spending them.
If you're using Cardano DeFi protocols, like SundaeSwap, you may receive LP tokens and additional rewards. DeFi taxes vary depending on where you live, however, generally speaking if you exchange capital for an LP token, this may be viewed as a crypto to crypto trade and any gains subject to Capital Gains Tax. Meanwhile, if you earn new tokens - like SUNDAE - you may be liable to pay Income Tax upon receipt of your tokens based on the fair market value in your country's fiat currency.
Yes. Most tax offices around the world are clear that staking rewards - including Cardano staking rewards - are subject to Income Tax upon receipt and Capital Gains Tax upon disposal.
The correct way to report your Cardano staking rewards depends on your tax office. In general, you'll report any income from Cardano staking rewards as part of your annual tax return. You'll need to identify the fair market value of any ADA tokens received as a reward for staking, on the day you received them, in your country's fiat currency.