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Crypto tax reporting can be a time consuming process due to the high volume of transactions and multiple wallets and exchanges often involved for a user. To make things easier, BYDFI has partnered up with CoinLedger, the highest-rated crypto tax software, to bring free tax reporting capabilities to our users.

All BYDFI users who signed up prior to December 31st, 2023, will receive an email with a link that will enable you to claim your free CoinLedger tax reports for the year.  

How Cryptocurrency Taxes Work Globally

Across the majority of countries, crypto is considered a form of property. When you generate income from selling or earning crypto, that income is subject to tax based on your personal income tax rate and needs to be reported on your taxes.

Capital Gains: Upon selling or disposing of your cryptocurrency, you realize capital gains and losses. Your tax obligations are determined by the fluctuations in the crypto’s value since the initial acquisition.

Ordinary Income: When you earn crypto, whether that’s from staking, mining, or a job, you incur income taxes based on the fair market value of the crypto at the time it was earned.

Guidance for In-Depth Analysis: For a deeper understanding of crypto taxes specific to your jurisdiction, consider consulting dedicated crypto tax guides. These resources offer detailed insights, providing clarity on the intricacies of cryptocurrency taxation in your region.

How to use CoinLedger to automate your crypto tax reporting

CoinLedger is a leading cryptocurrency tax software company that has partnered with BYDFI to facilitate simpler tax calculations and reporting. You can follow the below steps to automatically generate your gains, losses, and income tax forms from your crypto transactions.

  1. Create a free CoinLedger account by clicking the sign up link you received in an email from BYDFI

  1. Add all wallets and exchanges you use to CoinLedger

  1. Import your historical transactions by connecting your exchanges and entering your wallet addresses

  1. Generate your tax reports with 1 click

And that’s it! Once you have imported your historical transactions to CoinLedger, you will be able to generate and download 2023 tax reports completely for free!

If you have specific tax questions regarding your situation, the CoinLedger team is happy to help! They can be reached at help[at]coinledger.io.