Bibox Tax Reporting
TokenTax connects to Bibox for easy crypto-currency trade tracking and tax filing.
Bibox overview and features
Bibox is China-based a cryptocurrency exchange founded in 2017. It is one of the largest exchanges and geared towards quantitative traders, boasting the ability to process millions of transactions per second.
Bibox offers crypto bot trading, margin lending and trading, and contracts. They also are expanding their platform geared towards asset management with a host of strategies to invest in. Their full screen trading platform has a variety of trade signal tools built in. Additionally, they are continually expanding their offerings to support institutional investors.
Your trading activity on Bibox is subject to taxes
Keep in mind that every trade between crypto to crypto as well as every sale from crypto to fiat currency is a taxable event in most countries. You need to report such crypto trading to the IRS or relevant tax authority.
This means that you need to be able to aggregate your transactions on Bibox with any other trades on other exchanges for your tax forms. If you are day trading, this reporting can be extensive and you will need to keep records from multiple years.
If you have traded on multiple exchanges or traded extensively on Bibox, crypto tax software may be a worthwhile investment. In this way, you can keep track of your capital gains and losses over multiple years in one dashboard in case you are audited. You can also get help with cryptocurrency tax via our guides.
If you are actively trading, crypto tax software will help you use accounting methods minimize your tax liability in line with IRS guidelines. Additionally, you can use tax loss harvesting at year-end to reduce your tax liability if your crypto tax software supports it.
A crypto tax software firm with in-house accounting will also be able to complete the profit and loss (P&L) statement calculations for your crypto fund if you are algo trading crypto on Bibox. Depending on how your firm plans on trading on Bibox, enlisting the help of a crypto tax software firm from the beginning will save you on your tax bill.
Each trade performed by an automated algorithm is a taxable event
While you may be familiar with the fact that all trades made by you on an exchange are taxed, you may not realize that this applies to bots performing trades on your behalf. For example, if you use a portfolio trading bot on Bibox that maintains fixed percentage shares, you are taxed on the transactions to rebalance your portfolio to maintain those fixed percentages as the prices of your cryptocurrencies fluctuate over time.
You may need to file an FBAR for your Bibox trading account
Because Bibox is a Chinese exchange, it qualifies as a foreign account for the purpose of the United States Foreign Bank Account Report (FBAR). In order to know if you need to file an FBAR, you will need to calculate the maximum balance you held in US dollars on Bibox and other foreign exchanges and accounts throughout the tax year and check if it is over the FBAR minimum threshold.
Uploading a Bibox CSV with TokenTax
Go to the trade history segment of your Bibox orders screen (https://www.bibox.com/entrustManage/entrustDeals?type=2).
Select a date range, and then click Export Data.
Upload your CSV file to TokenTax.
Note that Bibox only allows for data export starting in late 2019. If you have transactions from before that date, try contacting Bibox customer support for a full historical CSV.