As a Trezor user, you may be wondering how to account for your cryptocurrency taxes. Here's what you need to know.
Generally speaking, cryptocurrency is taxed as property. This means that any gains or losses you realize on your crypto holdings are subject to capital gains tax.
If you bought your crypto and then sold it at a profit, you will owe capital gains tax on the difference between your purchase price and sales price. Similarly, if you sold your crypto at a loss, you may be able to deduct that loss from your other income for tax purposes.
Trezor does not currently provide accounting or tax reporting features. However, the Ledgible Crypto Tax & Accounting Platform fully integrates with your Trezor wallet.
You can add your transaction history from your Trezor hardware wallet through one of the following methods. Each section includes recommendations on when it is the best option to use. Select the Add Wallet Data button on the top right of your Wallets dashboard in Ledgible Crypto Tax to get started!
This is the best method for adding your transaction history on blockchains for which it is supported. A few things to keep in mind when using the Wallet Connect option:
Alternatively, you can simply add the public address (and any additional receiving addresses that you used in each wallet) for each supported blockchain by copying and pasting it into Ledgible through the Standard Wallet > Manual Entry option. This is the best option if you only used one receiving address for your wallet AND when selecting the desired blockchain in the drop-down list, Wallet Provider does not show up as a third option (meaning Wallet Connect is not supported currently for this chain).
This method is ideal if you have many receiving addresses on a supported blockchain and the Wallet Connect option is not available or you are not able to plug it in via a USB cable to your device to use the Wallet Connect functionality. The HD Wallet / XPUB option allows Ledgible to generate all receiving addresses associated with a particular Extended Public Key (XPUB) automatically, rather than entering them one at a time as in the Manual Entry option. Please note that this does not give Ledgible the ability to move your funds- it simply allows Ledgible to view your receiving addresses and therefore add any associated transactions. See Trezor's guide here on how to find your XPUB. Add it to Ledgible by selecting HD Wallet / XPUB from the Add Wallet Data screen.
The File Import option is also available. This is the best option if you have any transaction history on the Trezor on an unsupported blockchain that is not listed in the drop-down menu list in the Standard Wallet flow. See Trezor's guide to downloading a CSV file containing your transaction history here and our guide to using the file import method here.
Not sure about what method to use? Have any questions or concerns? Feel free to contact us with what blockchains you have transacted in on your Trezor or any questions not answered in this guide. We're happy to help!