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How to file your Apecoin (APE) taxes with Koinly

How to do your Apecoin taxes with Koinly 

Apecoin (APE) is an ERC-20 token available on multiple blockchains, launched in March 2022, as the native coin of the APE ecosystem. It's closely affiliated with Yuga Labs, the Bored Ape Yacht Club creators. Koinly can help you calculate taxes for 400,000+ ERC-20 tokens, including Apecoin. Here's how.

  1. Sign up to Koinly and choose your country and currency
  2. Connect with Koinly to import all your trades safely and securely - including ERC-20 tokens like Apecoin.
  3. Koinly identifies the cost basis of all your coins and tokens, as well as your taxable transactions
  4. Koinly calculates any capital gains, losses, and income from your taxable transactions
  5. Koinly generates your crypto tax report - ready to help you file with your tax office, or hand it over to your accountant.

How are Apecoin transactions taxed?

Your Apecoin transactions may have tax implications - but the tax you’ll pay all depends on where you live, so make sure to read our crypto tax guides. However, generally speaking, two taxes may apply to your Apecoin transactions:

  • Capital Gains Tax:  When you sell, swap, or spend APE, you may need to pay Capital Gains Tax on any gain you made as a result. 
  • Income Tax: When you earn APE - like through an airdrop or staking rewards - this could be seen as additional income and you may need to pay Income Tax based on the fair market value of your APE tokens at the time you received them.

Can the IRS track Apecoin?

The IRS has shown increasing interest in crypto investments - and especially given the hype around BAYC, it’s likely the IRS has an interest in tracking Apecoin investments as well. 

For starters, many centralized crypto exchanges collect KYC data and issue 1099 forms - to both users and the IRS. So if you’re investing in Apecoin on centralized exchanges, the IRS may already have some information about your Apecoin investments.

As well as this, the Ethereum public ledger is available for anyone to view and search through - including the IRS. If the IRS can link your identity to a given wallet or transaction - then they may know about your APE investments, even if you’ve used decentralized protocols. 

Learn more about how the IRS tracks crypto, here.

How to get Apecoin tax documents

The precise steps involved in calculating and reporting your Apecoin taxes depend on where you live. However, you’ll usually report your Apecoin gains, losses, and income as part of your annual tax return. 

To do this, you need to start by identifying your cost basis according to your country’s allowable accounting method, calculating your gains and losses from Apecoin, and identifying the fair market value of any income relating to your APE investments. 

For active investors, this is time-consuming - which is why most opt to use a crypto and Apecoin tax calculator like Koinly. Koinly can calculate your gains, losses, and income for more than 450,000 ERC-20 tokens - including Apecoin!

All you need to do is connect your wallet to Koinly and it’ll do the rest. Here’s how.

How to import Apecoin transactions to Koinly automatically

To import your Apecoin transactions into Koinly, you’ll need to connect each wallet you use to interact with Apecoin to Koinly.

As Apecoin is available on multiple blockchains, including Ethereum, Binance Smart Chain, and Avalanche - you may need to connect multiple blockchains to Koinly if you’ve interacted with APE on different blockchains.

This is really easy to do, you just need your public address - but remember, you’ll need to do this for each wallet you use to interact with APE in order for Koinly to correctly identify your cost basis, transfers, sales, swaps, and more.

You can find steps on how to connect a variety of popular Ethereum wallets to Koinly on our integration pages, but here’s an example of how it generally works.

In your wallet

  1. Open or log in to your wallet
  2. Select the blockchain you’d like to connect to - for example, Ethereum or Binance Smart Chain
  3. Copy your public address

On Koinly

  1. Sign up or log in to your Koinly account and go to the wallets page
  2. Search for and select the blockchain you’d like to connect to -  for example, Ethereum or Binance Smart Chain
  3. Give your wallet a name - for example - MetaMask or Trust Wallet
  4. Paste your public address
  5. Select import

Important

1. Remember, you’ll need to do this for every wallet you use to interact with Apecoin tokens (and any other tokens!) in order to calculate your crypto taxes correctly. As Apecoin also exists on the AVAX and BSC blockchains too, you may also need to add your public address from these blockchains too in order to import your complete Apecoin transaction history.

2. It’s really helpful to name your wallets when you’re adding them to Koinly. This can help you find any transactions you believe have errors later on much more easily!

3. 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 wallet.

How do I troubleshoot my Apecoin integration to Koinly?

Problems connecting Ethereum and Koinly? No worries - there's help at hand:

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What is Apecoin?

Apecoin is an ERC-20 token on the Ethereum blockchain, launched in March 2022, inspired and affiliated with the Bored Ape Yacht Club NFT collection. 

How can I buy Apecoin?

You can buy Apecoin on centralized cryptocurrency exchanges such as Binance, Coinbase, and eToro, as well as swap other tokens for APE on decentralized exchanges.

What can I use Apecoin for?

Apecoin is a governance and utility token, that allows holders to vote on governance decisions around the development of the project. But as it's a utility token, Apecoin is also the native currency for the Apecoin ecosystem.

How many Apecoins are there?

There are around 368 million APE tokens currently in circulation with a maximum supply of 1 billion APE tokens. 

Is Apecoin a good investment?

Apecoin was very popular when it first launched thanks to its close association with other successful projects like the BAYC NFT collection. However, as with all crypto, Apecoin is a high-risk investment and you should always DYOR before investing.

Can you mine Apecoin?

No, you cannot mine Apecoin - although there are some mining pools that allow you to be paid out in a token of your choice that may include APE tokens. If you want to earn APE tokens, you can stake APE instead.

Where can I stake Apecoin?

You can stake Apecoin through centralized crypto exchanges like Binance - for example, using Binance Earn - and earn rewards. You may also be able to stake APE on decentralized protocols.

Is Apecoin safe?

Apecoin is a decentralized project with a roadmap and a strong community. But as with all crypto investments, investing in Apecoin comes with inherent risks around volatility and you should always DYOR, as well as follow best security practices for storing your crypto

What blockchain is Apecoin on?

Apecoin is an ERC-20 token on the Ethereum blockchain, As well as this, Apecoin is now live on multiple other blockchains including AVAX and BSC. 

Do I have to pay tax on Apecoin?

Yes, your Apecoin transactions - and any other crypto transactions - may be subject to tax. You’ll generally pay Capital Gains Tax on any gain when you sell, swap, or spend Apecoin or Income Tax on any new tokens - like an airdrop of Apecoin or staking rewards.

Do I have to pay tax on Apecoin airdrops?

Many investors received an airdrop of Apecoin tokens when the token launched in 2022 - in particular, BAYC and MAYC holders could claim an airdrop. Tax on crypto airdrops depends on where you live but may be viewed as additional income and subject to Income Tax upon receipt, based on the fair market value of your APE tokens at the point you received them.