How to file your r/Cryptocurrency Moons taxes with Koinly

r/Cryptocurrency Moons (MOON) are ERC-20 tokens on layer-2 rollup Arbitrum Nova and the official cryptocurrency for the r/CryptoCurrency subreddit! Redditors earn MOONs for posting quality content to the subreddit, but as you can also trade and sell MOONs, you might have a surprise tax bill in store! Don't worry, Koinly can help you calculate taxes for thousands of ERC-20 tokens, including MOONs. Here's how.

  1. Sign up to Koinly and choose your country and currency

  2. Connect Aribitrum Nova with Koinly to import all your trades safely and securely - including ERC-20 tokens like MOON.

  3. Koinly identifies the cost basis of your tokens and coins, as well as your taxable transactions

  4. Koinly calculates any capital gains, losses, and income from your taxable transactions

  5. Koinly generates your crypto tax report - ready to help you file with your tax office, or hand it over to your accountant.

How are r/CryptoCurrency Moons transactions taxed?

Reddit Moon taxes are a controversial subject, to say the least - especially when it comes to the taxes that may apply. Your taxes will depend on where you live, so you should check out our crypto tax guides for more information about where you live, but generally speaking - two taxes may apply to your crypto.

  • Capital Gains Tax:  When you swap or sell Reddit MOONs and make a gain, you may be liable to pay Capital Gains Tax on that gain. 

  • Income Tax: It isn’t clear whether earning Reddit MOONs is subject to Income Tax, although the conservative approach would be that it is. Although Reddit Moons are a kind of governance token and the issuer (Reddit) states the value is not monetary… the reality is that they do have a market value as you can sell and swap Reddit Moons. As well as this, the IRS (and other tax offices) have made it clear that airdrops of crypto are viewed as income and subject to Income Tax upon receipt based on the fair market value at the time of the trade. As such, when you earn Reddit MOONs, you may be liable to pay Income Tax upon receipt.

Can the IRS track my Reddit MOONs?

The IRS - unsurprisingly - hasn’t issued any specific guidance on Reddit MOONs and taxes. Whether that means they’re not paying attention to Reddit MOONs, who knows.

As with all cryptocurrencies and tokens, excluding opaque blockchains like Monero, the public ledger is just that… public. If the IRS can link your identity to a given wallet or transaction - for example, through KYC data provided by centralized exchanges - then they may well know about your Reddit MOONs. 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.

How to get r/Cryptocurrency Moons tax documents

Generally speaking, you’ll need to report any capital gains or income from Reddit Moon investments to your tax office as part of your annual tax return.

To do this, you’ll need to identify the fair market value of any Reddit Moon on the day you received them (and potentially report this as income) and any subsequent capital gains or losses from when you’ve swapped or sold Reddit Moons.

If you’re thinking that sounds time-consuming, you’d be right - which is why most investors opt to use a crypto tax calculator like Koinly. Koinly can calculate your gains, losses, and income for hundreds of thousands of tokens - including Reddit Moons!

All you need to do is connect your wallet to Koinly and it’ll do the rest. Here’s how.

How to import r/CryptoCurrency Moons transactions to Koinly automatically

To import MOON transactions into Koinly, you’ll need to connect each wallet you use to interact with MOON tokens to Koinly. 

This is really easy to do, you just need your Arbitrum Nova public address - but remember, you’ll need to do this for every wallet you interact with Reddit MOONs with in order for Koinly to correctly identify your cost basis, transfers, sales, swaps, and more. 

You can find steps on how to connect a huge variety of popular wallets to Koinly on our integration pages. Once you have your public address, it's as simple as this on Koinly:

  1. Sign up or log in to your Koinly account and go to the wallets page

  2. Search for and select Arbitrum Nova

  3. Give your wallet a name - MetaMask Arbitrum Nova

  4. Paste your public address


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