PayPal is one of the largest payment processors in the world and launched its own dedicated crypto wallet back in 2021 - and it might come as a surprise to you, but your PayPal crypto transactions may be taxable. Whatever your investments and wherever you live, Koinly can help with your PayPal crypto taxes. Here's how.
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. When it comes to PayPal, all you need to do is upload a CSV file of your crypto transaction history.
You can integrate Koinly with PayPal by uploading a CSV file of your transaction history. Here's how to get your PayPal transaction history CSV file.
When downloading your CSV files, check that the file covers your full trading history. You may need to download multiple files and upload these to Koinly to get your complete trading history.
If you need help connecting PayPal and Koinly, check out these great resources:
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Yes. PayPal provides a gains and losses statement CSV file for some investors depending on where you live. However, if you’ve transferred crypto to and from PayPal - these forms may not be correct as you will not have the correct cost basis for your crypto, and as such your gain or loss may be calculated incorrectly. As well as this, PayPal only offers the HIFO accounting method for cost basis calculations, which may not result in the lowest or most ideal tax position for your individual circumstances.
The easiest way to ensure you have accurate tax documents for PayPal crypto is to use a crypto tax calculator like Koinly. All you need to do with Koinly is upload your PayPal crypto transaction statement CSV file, and Koinly will calculate your gains, losses, and income, before generating your crypto tax report.
PayPal provides a range of tax documents and statements to assist users with tax reporting, depending on the user's location.