How to file your Graph (GRT) taxes with Koinly

How to do your Graph (GRT) taxes with Koinly 

The Graph is a decentralized indexing protocol for blockchain data, built on Ethereum, that lets dApps interact with external third-party data, while GRT is the native token for the protocol. To ensure the integrity and security of the network, delegators can provide services and earn GRT, as well as buy, sell, and trade GRT like you would any other token. Whatever your GRT transactions, Koinly can help you calculate your taxes for GRT and more than 400,000 other ERC-20 tokens.

1. Sign up to Koinly and choose your country and currency
2. Connect Ethereum with Koinly to import all your trades safely and securely - including ERC-20 tokens like GRT
3. Koinly identifies the cost basis of your tokens and coins, 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 GRT tokens taxed?

How your crypto is taxed depends on where you live, so for specific information in your country, make sure to read our crypto tax guides. However, generally speaking, two taxes may apply to your GRT transactions:

• Capital Gains Tax:  If you've sold or swapped GRT tokens and made a gain, you'll usually pay Capital Gains Tax on that gain,
• Income Tax: When you earn new GRT tokens, for example through GRT staking or third-party staking providers like Binance Earn, this may be viewed as additional income and subject to Income Tax based on the fair market value of your GRT tokens in your fiat currency at the time you received them.

Can the IRS track GRT?

An important question on everyone's mind... can the IRS track crypto? Let's break it down.

GRT is an ERC-20 token on the Ethereum blockchain. Ethereum, like most other blockchains, is a public ledger. That means anyone, including the IRS, can search for a given address to view the transactions made. So if the IRS can link your identity to a given wallet or transaction - then they may know about your investments.

As well as this, if you've traded or staked GRT using a centralized exchange, many of these exchanges issue 1099 forms to users with specific earnings, but whenever you receive a 1099 form, so does the IRS. In other words, you should report your gains and income from crypto investments - including GRT - accurately to avoid crypto tax penalties.

How to get The Graph (GRT) tax documents

In most countries, you report your gains, losses, and income from crypto investments, including GRT, in your annual tax return.

To do this, you need to calculate your gains, losses, and income from GRT. This means identifying each taxable transaction and the kind of tax that applies first, then calculating a capital gain or loss for each disposal of GRT or the fair market value in your fiat currency for any GRT tokens considered additional income.

Worse still, you need to do this for every crypto asset you've invested in - not just GRT. It's time-consuming, which is why most investors use a crypto tax calculator like Koinly to save themselves hours. Koinly can calculate your gains, losses, and income for more than 450,000 ERC-20 tokens - including GRT. You just need to connect Ethereum to Koinly, here's how.

How to import GRT transactions to Koinly automatically

To import your GRT transactions into Koinly, you’ll need to connect each Ethereum wallet you use to Koinly.

This is really easy to do, you just need your public address - but remember, you’ll need to do this for each Ethereum wallet you use to interact with GRT 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 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 Ethereum
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 Ethereum
3. Give your wallet a name
4. Paste your public address

How do I troubleshoot my GRT integration to Koinly?

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

• Head over to our help center
• Hit up our discussion boards - we might have already answered your question
• Ask us on social media - we're on Twitter or Reddit
• Contact us by email or live chat
• Got a feature request? Give us feedback on Canny