How to file your Miladay taxes with Koinly

Miladys (LADYS) is a popular memecoin built on the Ethereum blockchain. But even your memecoin gains are taxable. Don’t worry, Koinly can help you calculate taxes for LADYS and thousands of other ERC-20 tokens. Here’s how. 

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 LADYS.

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.

Read next: What is Miladys memecoin?

How are LADYS tokens taxed?

It doesn't matter if your investment is a memecoin - from a tax perspective, it's all the same regarding different cryptocurrencies. Crypto tax depends on where you live and your tax office's guidance - so check out our crypto tax guides. All this said, you'll generally pay Capital Gains Tax or Income Tax on your LADYS transactions.

• Capital Gains Tax:  Sell or trade LADYS tokens and make a gain? That gain is taxable under Capital Gains Tax.

• Income Tax: Earned new LADYS tokens? You'll pay Income Tax upon receipt based on the FMV of your tokens in your fiat currency. This potentially includes airdrops of LADYS tokens depending on where you live.

Can the IRS track LADYS?

So, can the IRS track crypto? Yes. Your transactions are on the Ethereum public ledger, so anyone, the IRS included, can view these transactions and wallets. If the IRS can link your identity to a given wallet - they'll know about your transactions. And last year, the IRS hired experts to do just that. As well as this, if you've traded LADYS on centralized exchanges, many of these exchanges share data with the IRS in order to remain operationally compliant.

To avoid an unwelcome audit or crypto tax penalties, you should report your gains and income from crypto investments - including LADYS - accurately.

How to get LADYS tax documents

Most tax offices globally want you to report your gains, losses, and income from crypto investments in your annual tax return.

Before this though, you need to identify your taxable transactions and which tax applies, and calculate a gain, loss, or the fair market value of any income - and you need to do this for every single crypto you have, whether that's memecoins, stablecoins or otherwise.

This is why most investors use a crypto tax calculator like Koinly to save themselves hours. Koinly can calculate your gains, losses, and income for thousands of ERC-20 tokens. You just need to connect Ethereum to Koinly, here's how.

How to import LADYS transactions to Koinly automatically

To import your LADYS transactions into Koinly, you’ll need to connect each Ethereum wallet you use to Koinly. All you need is your public address - but remember, you'll need to do this for every Ethereum wallet you've transacted with, as well as any centralized exchanges you've used.

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