How To Do Your Trezor Taxes With Koinly
Trezor is one of the most trusted and secure hardware wallets available for crypto investors, letting you securely store your crypto assets offline, as well as buy, exchange, and sell through Trezor Suite via desktop and browser. Whatever your investments, Koinly can help you with your Trezor taxes.
Follow these steps to sync your Trezor data automatically to Koinly:
- Open your Trezor wallet app
- Copy the public address for every coin that you have on it (even the ones with a zero balance)
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Trezor 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!
How are Trezor transactions taxed?
The tax that applies to your Trezor transactions depends on the specific transaction and your country's rules on crypto tax. This said, generally speaking, there are two taxes that might apply to your crypto:
Capital Gains Tax: Whenever you sell, trade or spend crypto via Trezor, you'll likely pay Capital Gains Tax on any profit from that transaction.
Income Tax: If you're earning new tokens and receiving them in your Trezor wallet - whether that's staking rewards, mining rewards, or any other kind of income - you'll likely pay Income Tax based on the fair market value of new tokens or coins on the day you receive them, in your fiat currency.
Want to learn more about crypto tax where you live? See our crypto tax guides.
Does Trezor provide tax documents?
No. Trezor does not provide tax documents or reports. Instead, you'll need to get your Trezor transaction history, identify your taxable transactions, and calculate your capital gains and income. Better still, use a crypto tax calculator like Koinly to do it for you.
Does Trezor report to the IRS?
Trezor is a non-custodial wallet with no KYC, making it a secure and private wallet. In other words, it's very unlikely Trezor is sharing data with the IRS or any other tax office for that matter.
This said, if you've moved assets from your Trezor wallet to centralized crypto exchanges, many of these exchanges are legally compelled to share data with the IRS and other tax offices - potentially including your Trezor address.
Your frequently asked questions
Does Trezor have tax documents?
No. Trezor does not issue users with tax documents. Instead, you'll need to use your Trezor transaction history to calculate your taxes yourself or use a crypto tax calculator like Koinly to do it for you.
How do I get Trezor tax documents?
The easiest way to get your Trezor tax documents is to connect to crypto tax software like Koinly using your public address or by uploading a CSV file of your Trezor transaction history. Your crypto tax calculator will then calculate your gains, losses, and income and generate a crypto tax report.
Does Trezor provide financial or end of year statements?
No. Trezor does not provide users with financial or end of year statements, but you can export your transaction history as a CSV file.
Do I have to report Trezor transactions if I didn't sell?
This depends on where you live. Generally speaking, buying crypto with fiat currency and holding crypto as an investment is not subject to tax, but some countries have a Wealth Tax or TDS that may apply to crypto transactions. You can find out more in our crypto tax guides.
Do I have to pay taxes on Trezor transactions?
Potentially, yes! Crypto tax varies depending on where you live and the transactions you've made. However, broadly speaking, gains from selling, swapping, or spending crypto are subject to Capital Gains Tax, while earning new tokens from activities like staking or mining may be subject to Income Tax. You can learn more in our crypto tax guides.
Is Trezor safe?
Yes, Trezor is a market-leading, hardware wallet. Cold storage is considered the best practice to keep your crypto safe and Trezor products are some of the most popular options on the market. This said, your wallet is only as safe as you are. You should follow best security practices on the best ways to store crypto.
Is Trezor safer than Ledger?
Both Trezor and Ledger offer well-rated hardware devices with top-of-the-line security features and both support a huge amount of coins. Much of the decision over which is better, Trezor vs. Ledger, will come down to the specific features you'd like for your hardware wallet, for example, Bluetooth or USB connection, as well as your budget.
Has Trezor model T ever been hacked?
Yes. In 2022, an ethical hacker successfully hacked a Trezor One hardware wallet with more than $2 million in lost crypto after an investor lost the security pin. As well as this, in 2020, Kraken Security Labs identified a security flaw with Trezor wallets - but Trezor has since changed wallet architecture to resolve this issue.
What happens if someone steals your Trezor?
If your Trezor hardware wallet is stolen (or lost or damaged), you can use your recovery seed to restore your entire wallet - you just need to enter your seed into your new hardware device. This is why it's so important to make sure you set up a recovery seed and store it securely when you first set up your wallet. Trezor devices support more than 1,800 coins, although The Trezor Model T supports more coins than the Trezor Model One. See a full list of supported coins and search for yours.