PrimeXBT Tax Reporting Guide in 2022

If you are a part of the community that trades and invests in cryptocurrencies, you are probably aware that cryptocurrencies also have taxable events. However, tax authorities report taxes on the different cryptocurrency activities online is different from how regular taxes are reported.

It can be a complex process that requires a lot of meticulous work. To solve this problem for crypto traders and investors worldwide, companies have started introducing software and platforms online that will help you generate a proper crypto tax report.

Even if this solves half the problem of not wasting so much time filing taxes, you still have to contact a legal authority who knows all the ins and outs of taxes in your country or region to avoid any misunderstanding and other legal troubles.

How To Do Your PrimeXBT Tax Report?

Some crypto exchange platforms even have their subsidiary for generating tax reports, but there are many stand-alone tax report generators for cryptocurrency, even if they don’t. Unfortunately, for PrimeXBT, there is no platform integrated within the exchange that will help you do your crypto taxes, but you can use third-party applications and websites that will do your taxes for you.

Since PrimeXBT API is not supported, the better alternative to doing your taxes by hand is to use any one of these software to give you an accurate response for all your crypto transactions online. Here are two methods to generate a tax report on PrimeXBT without an integrated API.

Upload a file that is supported for tax generation on the platform:

Instead of connecting your PrimeXBT account with API keys, upload an excel sheet or a CSV file to PrimeXBT.

PrimeXBT Tax CSV

Manual update of transactions from your account to the platform:

You can also manually add each transaction you have done from your account. This is a tedious task and may require a lot of time if you have made a lot of transactions. The manual method for generating tax reports on PrimeXBT is only recommended if you don’t have any other choice or only have a handful of taxable events to file.

Let’s look at some of the most popular third-party apps that you can use with PrimeXBT to generate your tax report.

Coinpanda:

Coinpanda is an automated platform that works alongside PrimeXBT to simplify your tax reporting process and keep them up to date. You can easily calculate all your taxes and generate tax reports automatically through this platform.

Accointing:

This platform is especially great for beginner traders and investors of crypto who are not keen on handling more than one type of software in the crypto space. Accointing solves this issue and makes the management of your tax reports more accessible. You even get access to educational content that will help you learn about how to generate your PrimeXBT tax reports. The crypto tracker app associated with this website is also a great tool to help you monitor your cryptocurrency activities online.

CryptoTrader.Tax:

This automated platform helps you file taxes by integrating all your cryptocurrency platforms. It generates consolidated data for all your cryptocurrency activities. CryptoTrader.Tax can help keep track of your transactions on the PrimeXBt platform, such as tracking losses and profits and even generating a very accurate tax report in a short period.

Koinly:

Koinly is a very easy-to-use software that helps you calculate all your taxes from the PrimeXBT platform. You can get an accurate and detailed tax report of your account by simply exporting your transaction history from your account online and adding it to the Koinly platform.

How Does Third-Party Software Work With PrimeXBT To Generate Tax Reports?

  1. Typically, all third-party platforms for generating tax reports require you to export your transaction history from the PrimeXBT platform. Since PrimeXBT API is unavailable to sync all your transactions, you can convert your file to an Excel Sheet or a CSV file, which are the typical formats that most platforms accept.
  2. If you do not have a lot of transactions, you can skip the previous step and manually add each transaction detail to the third-party app where you will be generating your tax report.
  3. On the other hand, if you have a long list of transactions, you can go to your PrimeXBT account and log in to get your account statement.
  4. From the Account Statement page, please scroll to the portion of the screen with the HTML table and copy it.
  5. Paste this HTML table on an Excel sheet, or if you don’t have the software, you can go to Google Sheets and paste it there.
  6. Save the file and upload this file to the third-party app, where they prompt you to enter or upload transaction details.

How To Report PrimeXBT Taxes?

There are nuances in reporting taxes on PrimeXBT like any other crypto trading platform. Tax authorities typically use a different policy and system to report PrimeXBT taxes, but most of the amount considers the US dollar value.

The assets you have on crypto are classified under ‘income from other sources.’ In addition to this, some crypto-assets can be termed under ‘speculation business income,’ which are taxed according to the highest tax slab. However, this step is only taken if the tax authorities or the department question the report.

The tax department also views cryptocurrencies as “property” or “assets” and not as any other kind of currency. Every asset or cryptocurrency exchanged or sold for profit on PrimeXBT becomes a taxable event. You will be liable to pay capital gains on whatever profits you made, depending on the value of the United States dollar.

If you use cryptocurrency on PrimeXBT to purchase any goods or services, it will become a taxable event wherein the amount you pay depends on the transaction amount. The report for this activity is termed “business income.” Under this classification, even income from mining on the platform is a business income.

PrimeXBT Tax Reporting FAQs

Do I need to report taxes from PrimeXBT trading? 

Yes, you need to report taxes from PrimeXBT trading. As per tax laws in most countries, every individual must send a detailed report of all their assets, including foreign assets.

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