How to file your Morpho taxes with Koinly
Morpho is a decentralized, non-custodial lending platform for the Ethereum blockchain. Whatever your transactions, Koinly can help calculate taxes for hundreds of Ethereum dApps including Morpho. Here's how.
Sign up to Koinly and choose your country and currency
Connect Ethereum with Koinly to import all your 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 Ethereum lending protocols taxed?
The majority of tax offices haven't yet issued guidance on the tax implications for lending protocols - but it doesn't mean it's tax-free. It all depends on where you live and how your protocol works, but you may pay Capital Gains Tax or Income Tax on lending rewards.
Learn more in our DeFi loans tax guide.
Can the IRS track Ethereum DeFi investments?
Yes. Like other blockchains, Ethereum is a public ledger. That means anyone, including the IRS, can view information such as wallet addresses, all transactions associated with a given wallet, wallet holdings, and more. The IRS just needs to link you to a given wallet address in order to track your DeFi investments - and they have experts to do just that.
Read next: Can the IRS track crypto?
How to get Morpho tax documents
In most countries, you'll report any gains, losses, or income from crypto investments in your annual tax return. To do this though, you'll need to go through all of your crypto transactions, identify which are taxable and what tax applies, and calculate any gain, loss, or income in your fiat currency.
For active investors with a lot of trades, it's a lot of work, which is why most investors use a crypto tax calculator like Koinly. Koinly can calculate your gains, losses, and income for more than 800 wallets, exchanges, and blockchains including Ethereum dApps.
How to import Morpho transactions to Koinly automatically
To import your Morpho transactions into Koinly, you’ll need to connect any Ethereum wallet you use with Morpho to Koinly. This is simple to do, you just need your public address. We've got instructions on how to connect popular Ethereum wallets 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 - in this example, Ethereum
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 to - in this example, Ethereum
Give your wallet a name - for example - Trust Wallet Ethereum
Paste your public address
Your frequently asked questions...
What is Morpho?
Morpho is a decentralized lending protocol operating on the Ethereum blockchain. It enables peer-to-peer liquidity matching, achieving 100% capital utilization and offering improved rates for both borrowers and lenders. If a direct match isn't available, the loan utilizes liquidity from underlying lending pools.
Morpho offers two versions: Morpho Blue and Morpho Optimizers. Morpho Blue acts as a fundamental lending layer that creates efficient lending markets, featuring smart contracts to facilitate interactions and integrations. Morpho Optimizers, built on existing lending pools, enhances lending and borrowing rates via a peer-to-peer matching algorithm.
Is there a MORPHO token?
Yes. Morpho has launched a MORPHO token, but it's not yet transferable or distributed. You can learn more in the Morpho Whitepapers.
Are Ethereum loans taxed?
Yes. You'll pay either Income Tax or Capital Gains Tax on Ethereum lending protocol transactions depending on how your protocol works and the rules where you live.
