Read on Twitter
1/25
A long thread, but I think you'll like it: "How to Do Your Crypto Taxes by Yourself".
I'm sharing my spreadsheet templates and some practical tips and tricks.
Caveat: I'm not a tax adviser, so this is not qualified advice. I'm not liable for any errors in your tax report.
A long thread, but I think you'll like it: "How to Do Your Crypto Taxes by Yourself".
I'm sharing my spreadsheet templates and some practical tips and tricks.
Caveat: I'm not a tax adviser, so this is not qualified advice. I'm not liable for any errors in your tax report.
2/25
If you did any of the following with your Ether or ERC20s:
+ Exchanged them for fiat or for one another
+ Earned them as work income
+ Supplied them to various decentralised lending protocols
Follow along! This guide is for you, the DeFi power user.
If you did any of the following with your Ether or ERC20s:
+ Exchanged them for fiat or for one another
+ Earned them as work income
+ Supplied them to various decentralised lending protocols
Follow along! This guide is for you, the DeFi power user.
3/25
The first thing to be aware of is that crypto taxes differ based upon the jurisdiction.
Many, if not most, offer incomplete documentation, which is why I follow the guidance published by the UK. It's clear, logical and cohesive. https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals
The first thing to be aware of is that crypto taxes differ based upon the jurisdiction.
Many, if not most, offer incomplete documentation, which is why I follow the guidance published by the UK. It's clear, logical and cohesive. https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals
4/25
However, this is not a UK-specific guide. Many tax authorities don't cover DeFi, so between no model and the UK model, I go with the latter.
To be sure, contact a tax adviser familiar with your local jurisdiction. In some places, capital gains on cryptos aren't even taxed.
However, this is not a UK-specific guide. Many tax authorities don't cover DeFi, so between no model and the UK model, I go with the latter.
To be sure, contact a tax adviser familiar with your local jurisdiction. In some places, capital gains on cryptos aren't even taxed.
5/25
I use Google Sheets to keep track of my portfolio and maintain three spreadsheets:
1. Incomes 2020
2. Yields 2020
3. Capital Gains 2020
I'll delve into all of them, but first, let's talk about taxable events and historical price data.
I use Google Sheets to keep track of my portfolio and maintain three spreadsheets:
1. Incomes 2020
2. Yields 2020
3. Capital Gains 2020
I'll delve into all of them, but first, let's talk about taxable events and historical price data.
6/25
Pretty much anything that you do with your cryptos is considered a taxable event:
+ Buy or sell ETH for fiat or ERC20s
+ Supply and withdraw money from Compound
+ Supply and withdraw liquidity from Uniswap
There's a row in my spreadsheets for each one of these.
Pretty much anything that you do with your cryptos is considered a taxable event:
+ Buy or sell ETH for fiat or ERC20s
+ Supply and withdraw money from Compound
+ Supply and withdraw liquidity from Uniswap
There's a row in my spreadsheets for each one of these.
7/25
The most important data to get hold of are the historical prices for all of 2020.
This is faster than manually getting the rates for each date you traded on (hint: you probably traded on a helluva lot of dates).
The most important data to get hold of are the historical prices for all of 2020.
This is faster than manually getting the rates for each date you traded on (hint: you probably traded on a helluva lot of dates).
8/25
Fork the "Incomes 2020" spreadsheet below and open the "Rates" sheet.
You'll see the BTC, ETH, EUR & GBP rates in USD for the whole year.
Depending on your circumstance, you may want to change the base fiat currency and add or remove pairs. https://docs.google.com/spreadsheets/d/1NJJvDqUhJtgaCivHm-6IqtOqlrf2YDDsZ880iSa1BaY/edit?usp=sharing
Fork the "Incomes 2020" spreadsheet below and open the "Rates" sheet.
You'll see the BTC, ETH, EUR & GBP rates in USD for the whole year.
Depending on your circumstance, you may want to change the base fiat currency and add or remove pairs. https://docs.google.com/spreadsheets/d/1NJJvDqUhJtgaCivHm-6IqtOqlrf2YDDsZ880iSa1BaY/edit?usp=sharing
9/25
Importantly, each column from row 2 to row 367 is defined as a named range:
+ RATE_DATES
+ BTC_RATES
+ ETH_RATES
+ EUR_RATES
+ GBP_RATES
You need this for computing the crypto values in fiat. To see all named ranges, click right on any cell and then "Define named range".
Importantly, each column from row 2 to row 367 is defined as a named range:
+ RATE_DATES
+ BTC_RATES
+ ETH_RATES
+ EUR_RATES
+ GBP_RATES
You need this for computing the crypto values in fiat. To see all named ranges, click right on any cell and then "Define named range".
10/25
Besides "Rates", you'll see four more sheets:
+ Totals
+ Airdrops
+ Grants
+ Freelance
It's safe to substitute DAI, USDC and most stablecoins with $1. But how do you calculate your earnings when someone pays you in a fluctuating asset like Ether?
Besides "Rates", you'll see four more sheets:
+ Totals
+ Airdrops
+ Grants
+ Freelance
It's safe to substitute DAI, USDC and most stablecoins with $1. But how do you calculate your earnings when someone pays you in a fluctuating asset like Ether?
