How to file your NEAR taxes with Koinly
Near Protocol is a cutting-edge software designed to encourage a network of computers to power a platform where developers can craft and deploy decentralized applications with ease. But if you're trading NEAR tokens, you might have a tax bill. Koinly can help - here's how.
Follow these steps to sync your NEAR data automatically to Koinly:
- Open your NEAR wallet app
- Locate and copy your public address or key
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find NEAR in the list
- Select API > Paste the public address/key you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
- Staking transfers need to be tagged as 'Add to Pool' or 'Receive from Pool'
- Auto-compounded staking rewards need to be added manually
- 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 and Reddit
- Contact us on email or live chat
- Got a feature request? Give us feedback on Canny
How do I file my NEAR taxes?
You'll need to calculate and report any income or capital gains you made with your tax office. For most people, this happens as part of your annual tax return.
There are a couple of ways you can do this - do it yourself, by identifying your taxable transactions, calculating your net capital gain or loss, and the fair market value of any crypto income.
Or, use a crypto tax calculator like Koinly to easily calculate your taxable income for you, and generate your crypto tax report, ready to file with your tax office.
Koinly works by importing your crypto transaction data to analyze what's taxable, and what's not.
Koinly lets you manage all your crypto transactions - from all the blockchains, wallets, and exchanges you use - from one single platform, making crypto tax simple.
Your frequently asked questions...
What is Near Protocol?
Near Protocol operates as a layer 1 blockchain network, providing a platform for developers to create decentralized applications or dApps. Ethereum has been the leading layer 1 blockchain, but protocols like Near want to change this and provide more scalable, low-cost solutions.
How does Near Protocol work?
Near Protocol is faster and cheaper than Ethereum, and many other so-called 'Ethereum killers' - and it implements sharding to achieve this. Sharding is a technique aimed at enhancing transaction speed and capacity. This approach entails dividing the blockchain into sub-chains, each managed by different validators, which are periodically interconnected. Essentially, the network mitigates the risk of scalability issues by segmenting itself into smaller components.
What is NEAR token?
The NEAR token is the native currency for Near Protocol. It's mainly used to pay transaction fees and as a reward for Near Protocol stakeholders. It can be bought, sold, and traded like any other coin or token.
Do I have to pay tax on my NEAR transactions?
Yes. Wherever you live, most tax offices have been clear that crypto may be subject to either Capital Gains Tax or Income Tax depending on your transactions. You can learn more about crypto taxes in our guides.
How do I get tax forms from Near Protocol?
The easiest way to calculate your NEAR taxes and generate the tax forms you need is with a crypto tax calculator like Koinly. With Koinly, all you need is your public address. Once you've added it to Koinly, it'll automatically import your Near Protocol transaction data and calculate your gains, losses, income, and more. You can then download a tax report to suit your needs.
