Otherwise known as the Dogecoin Killer, Shiba Inu is an ERC-20 token on the Ethereum blockchain. And although SHIB is very much a memecoin, the taxes you might pay on your Shiba Inu investments are no joke. Don't worry, Koinly can help you calculate taxes for 400,000+ ERC-20 tokens, including Shiba Inu. Here's how.
The taxes you pay on crypto - including SHIB tokens - depends on where you live, so make sure to read our crypto tax guides for more information. Broadly speaking, two taxes may apply to your crypto transactions:
The IRS has shown increasing interest in crypto investments - and SHIB is no exception. The tax office has many ways to track your crypto. For starters, many centralized crypto exchanges collect KYC data and issue 1099 forms - to both users and the IRS. So if you’re trading SHIB on centralized exchanges, there’s a chance the IRS is aware of your transactions.
As well as this, the Ethereum public ledger is just that - public. Anyone can search for a given address to look at the transactions made - including the IRS. If the IRS can link your identity to a given wallet or transaction - then they may know about your SHIB investments, even if you’ve used decentralized protocols.
As always, we recommend a conservative approach to crypto taxation to avoid provoking the ire of the IRS and potential audits or crypto tax penalties.
You can learn more about how the IRS tracks Shiba Inu and other crypto, here.
How to prepare and file your Shiba Inu taxes depends on your tax office - but generally speaking, you’ll report any capital gains or income from SHIB investments as part of your annual tax return.
To do this, you’ll need to calculate any capital gain or loss from any time you sold, swapped or spent SHIB, as well as identify the fair market value of any SHIB tokens on the day you received them for any income.
If you think that sounds time-consuming, you’re right - which is why most investors use a crypto tax calculator like Koinly. Koinly can calculate your gains, losses, and income for more than 450,000 ERC-20 tokens - including Shiba Inu!
All you need to do is connect your Ethereum wallet to Koinly and it’ll do the rest. Here’s how.
To import your Shiba Inu 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 SHIB 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 Ethereum wallets to Koinly on our integration pages, but here’s an example of how it generally works.
1. Remember, you’ll need to do this for every Ethereum wallet you use to interact with Shiba Inu tokens (and any other tokens!) in order to calculate your crypto taxes correctly.
2. It’s really helpful to name your wallets when you’re adding them to Koinly. This can help you find any transactions you believe have errors later on much more easily!
3. You may also be able to upload your transaction history to Koinly as a CSV file instead of connecting using your public address if you prefer, but this depends on the wallet you’re using. You can search for your wallet on our integration pages to find out more about how to get a CSV file from your Ethereum wallet.
Problems connecting to Koinly? No worries - there's help at hand:
Sign up free today to calculate your SHIB taxes
Shiba Inu (SHIB) is an ERC-20 created in August 2020 on the Ethereum blockchain. Named after the popular dog breed, the community-driven memecoin is also known as the Dogecoin Killer.
You can buy Shiba Inu on most centralized crypto exchanges - like Binance, Coinbase, and Kraken. Just create an account, deposit funds, and then purchase Shiba Inu using cryptocurrency or fiat currency. You can also swap ETH and other ERC-20 tokens for SHIB on decentralized exchanges.
Although it's yet another DOGE-themed token - Shiba Inu distinguishes itself from other cryptocurrencies thanks to its utility. As it’s an ERC-20 token on the Ethereum blockchain, Shiba Inu can run smart contracts, creating more investment opportunities.
Like all cryptocurrencies, Shiba Inu's price varies based on market conditions and demand. SHIB had an all-time high of $0.00008616 and an all-time low of $0.000000000056366. At the time of writing, the price of one Shiba Inu token is $0.00001269.
Shiba Inu has a circulating supply of 589 trillion tokens currently and a maximum supply of 1 quadrillion tokens.
Shiba Inu was created as a kind of fork from Dogecoin, to provide users with more utility thanks to being built on the Ethereum blockchain. Like its DOGE predecessor, SHIB is a community-driven project.
ShibaSwap is a decentralized exchange (dex) built on the Ethereum blockchain, that lets investors swap SHIB for other tokens, as well as earn SHIB and BONE through other protocols like staking and liquidity provision.
SHIB is a popular choice for many investors, particularly fans of memecoins. However, as with any investment, there is risk involved. The value of Shiba Inu is subject to market fluctuations, and its success is dependent on factors such as community adoption and market sentiment. It's important to do your own research and invest responsibly.
Shiba Inu tokens can be stored in various cryptocurrency wallets that support ERC-20 tokens, like MetaMask, Trust Wallet, and MyEtherWallet. It's important to store your tokens securely and keep your private keys safe.
Shiba Inu tokens are an ERC-20 token on the Ethereum blockchain. There are also wrapped versions of SHIB available on other blockchains.
Shiba Inu is a community-driven project, which means tokens are generally well-circulated and decentralized across the community. However, as with all cryptocurrencies, your crypto is only as safe as you are. You should always follow best security practices to store your crypto safely.
You can stake SHIB tokens on decentralized exchanges like ShibaSwap using the ‘bury’ feature, or use your SHIB to provide liquidity and earn BONE tokens. As well as this, some centralized crypto exchanges like Binance let you stake your SHIB for rewards.
A question as old as time. OG Dogecoin still has a higher market cap than SHIB, so arguably remains more widely adopted than SHIB. However, SHIB has more utility thanks to smart contract capability.
Yes, if you are a US citizen or resident, you are required to report any gains or losses from SHIB, as well as any income from SHIB, to the IRS as part of your income tax return. Failure to do so could result in penalties and fines.
Yes, you can use losses from Shiba Inu or any other cryptocurrency to offset gains in the same tax year, depending on where you live. You can use a Shiba Inu tax calculator like Koinly to help you easily figure out your gains and losses.
No. Like all cryptocurrencies, SHIB hasn’t escaped unscathed from the recent market turmoil, but the project is far from dead - with more than 470,000 members in the subreddit alone.
You can burn SHIB tokens by going to Shibburn and sending your SHIB tokens to one of the three null addresses.
More than 410 trillion SHIB tokens have been burned so far. The purpose of burning SHIB tokens is to increase the value of the token as its circulation supply declines.
Many popular US retailers like GameStop, Nordstrom, and PetCo now accept SHIB as payment. As well as this, Binance has added Shiba Inu as a payment option for its crypto card, which is accepted by more than 60 million online and physical stores.