Trading with BitForex might be easy, but your BitForex crypto taxes most likely won’t be if you're doing it yourself! Wherever you live, if you’ve been investing using BitForex’s digital currency trading services, you'll need to declare any gains, losses or income on your next tax return.
How to prepare BitForex taxes
With our comprehensive tax guide, you’ll learn all about what information you need to declare to your local tax authority about your BitForex investments, including your short and long-term capital gains, capital losses and any miscellaneous income from crypto investments. To get started - you're going to need your BitForex transaction history.
How to download BitForex transaction history
Unlike many other exchanges, BitForex does not currently have a tax API, so the only way you can download and export your BitForex trading and transaction history is via CSV. There are two ways to do this - and one is much simpler than the other!
- Export your BitForex CSV file and calculate your crypto taxes yourself. You'll need to identify the cost basis for each crypto asset, any subsequent capital gains or losses from sales or trades, as well as identify the fair market value of any crypto income. You'll then need to report this to your local tax office - normally as part of your annual tax return.
- Export your BitForex CSV file and upload it to a crypto tax app. Your app will calculate your crypto taxes for you and generate your BitForex tax report, ready to file with your tax office.
Does BitForex provide a tax report?
No, BitForex doesn't provide a tax report. Since investors tend to use multiple exchanges, wallets, and platforms, BitForex states it is not able to provide comprehensive gains, losses, and income tax information. You can, however, use your BitForex transaction history to calculate your crypto taxes and create a crypto tax report.
Does BitForex provide a 1099 form to the IRS?
No. BitForex does issue 1099-MISC tax forms. BitForex doesn't collect KYC data and would have nothing to share with the IRS - although this could change quickly with the new crypto regulations in the USA, whenever they're announced. You can find out more about your tax obligations and crypto 1099 forms on our blog.
Does BitForex supply a financial statement?
No, BitForex doesn't supply a financial statement. However, you can create a financial statement for tax purposes using crypto tax software.
BitForex CSV export
Here's how to get your BitForex trade history export.
- Log in to BitForex and go to orders (top right corner).
- Select order history.
- Select trading pair from the drop down list.
- Set a date range.
- Select download CSV.
If you've traded multiple spot markets, you need to repeat this process for all of the trading pairs - which means you may need several CSV files.
Another note - if you're uploading your CSV file(s) to a crypto tax app, you'll need your complete BitForex transaction history. So when you're selecting your date range, make sure it covers however long you've been trading on BitForex.
Does BitForex have a tax API?
No, BitForex doesn't currently have an API - but it is BETA. We'll update this space as soon as it's live!
Does BitForex provide an end of year statement?
No, BitForex does not provide an end of year statement. But you could generate CSV files of your trades throughout the financial year by selecting a date range that reflects your financial year and export this.
Does BitForex report to the IRS?
Currently, it's unlikely BitForex reports to the IRS. BitForex doesn't collect KYC data - so they have little customer data to share with the IRS. However, before you move all your assets there - this could change at any point. The US government have made it clear they're focusing on crypto regulations this year and legislation on crypto exchanges operating in the US is imminent. BitForex may be forced to begin collecting data and sharing with relevant authorities, or forced to stop operations in the US.
Does BitForex report to other tax authorities?
No BitForex doesn't collect KYC data and therefore has little to share with tax authorities like the ATO, the CRA or HMRC. However, like above, this could change quickly if legislation on crypto exchanges operating in certain countries is introduced.
How to generate a BitForex tax report
There are two ways you can generate a BitForex statement, either by using a crypto tax app or by calculating your crypto taxes yourself. Calculating your crypto taxes yourself is no easy feat.
Your local tax office wants to know about all your taxable crypto transactions, so you need to calculate your capital gain or loss from selling, trading, spending or gifting crypto for each transaction, as well as identify the fair market value of any crypto tokens considered income and report all this in your annual tax return.
Your best bet is connecting to a crypto tax app - like Koinly. Koinly can generate your BitForex tax report and calculate your BitForex taxes for you. A pre-filled tax report based on your location will be generated for you - for example, the IRS Form 8949 and Schedule D or the ATO myTax report.
Are you ready to get started with Koinly as your BitForex tax calculator tool? Great news! After Koinly imports your BitForex transaction history, Koinly will also calculate your BitForex taxes and provide a complete tax report in a format that makes sense for your country’s tax office. And that’s not all, as a BitForex tax calculator, Koinly is able to do a bunch of impressive tasks that save you both time and from paying too much tax.
Here’s a short summary of what Koinly can do for you:
- Import all your trades including purchases, sales, swaps, and rewards.
- Convert your transactions into your country’s currency at fair market value (this in itself is a massive time saver).
- Decipher which of your BitForex trades are taxable and which are not.
- Help you submit a clean and accurate report to your tax office.