Binance Tax Reporting
TokenTax connects to Binance for easy crypto-currency trade tracking and tax filing.
Filing crypto taxes for Binance
Binance is one of the most popular crypto exchanges, and many people are including transactions from Binance into their crypto capital gain and capital loss calculations.
While Binance may no longer allow U.S. traders on their original site, they recently opened a new site for the United States: Binance.US. You should absolutely still include records from the original Binance.com in your crypto taxes.
How Binance tax reporting works
Remember that, according to the IRS, crypto is treated as property for tax purposes, and you are liable for any capital gains when you sell or trade your crypto. When you report cryptocurrency on your tax return, trades must be calculated with USD equivalent for the IRS Form 8949, and you must also match sales with their original cost basis.
Because most people bought crypto on another exchange and transferred it to Binance, matching cost basis and proceeds — and finding the USD value equivalent of all trades — is tricky to do manually. In most cases, you can’t report your Binance exchange taxes alone; you must also factor in any other exchanges that you traded on.
When it comes to paying taxes, many crypto investors and traders are using crypto tax calculator software to automatically import their trading history from cryptocurrency exchanges like Binance.
Once all exchange data is in, the software calculates total capital gains or losses across all exchanges and automatically generates the necessary cryptocurrency tax forms. You can also see your net gain or loss and estimated tax liability.
Since Binance.com is shut down for U.S. users, can I still get my transaction history from it?
Luckily, Binance has only disabled trading and crypto deposits for U.S. users, at least for the time being. That means that you can still log on to their platform to retrieve your transaction data CSVs — as well as to withdraw any remaining crypto. API key connections are still functional as well.
Keep in mind that Binance may disallow logins at any point in the future, so it’s always a good idea to keep offline records of your crypto transaction history. This applies to Binance as well as any other exchanges you’ve traded on.
Binance.com and Binance.US are two separate exchanges, so be sure to import your transaction histories from both.
Do I need an FBAR for Binance?
Many traded on Binance in 2019 and in years prior, before the platform became closed to U.S. users and instead launched its own U.S. platform, Binance US.
If you are above the FBAR threshold for foreign holdings, then you will need to include the original Binance in your FBAR filing. This means that you need to include the highest balance of crypto held on Binance, calculated in USD.
Uploading a Binance CSV with TokenTax
Click on Export Complete Trade History at the top right corner.
You can only export 3 months at a time, so if you traded at Binance all year, you will need to create 4 reports (Jan – Mar, Apr – Jun, July – Sept, Oct – Dec) — remember to include all years you have traded on Binance.
Click Export to download the XLSX file.
Withdrawals and deposits:
Click Export Complete Deposit History at the top right corner.
Click the Withdrawal tab and then click Export Complete Withdrawal History at the top right corner. Deposits and withdrawals are each a separate report.
Importing a Binance API into TokenTax
If you haven't yet done so, click Enable under the API section. Then click API Settings.
Create a new API key by entering a label and clicking the Create New Key button.
The link to create the API key will be emailed to you. Click on the link to view your API key and secret, and then click Edit and uncheck Enable Trading and check Unrestricted for the IP address restrict.
Copy your API key and secret to TokenTax (https://tokentax.co/import)