Luno Tax Reporting
TokenTax connects to Luno for easy crypto-currency trade tracking and tax filing.
How Luno works
Luno is a leading global cryptocurrency company, founded in 2013 with headquarters in London and regional hubs in Singapore and Cape Town. Luno offers cryptocurrency wallets services and a range of trading products.
Luno wallet holders can easily buy, store and trade Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin. On the Luno Exchange, users can easily trade a number of support cryptocurrency pairs. Luno’s Exchange also offers price alerts and trade signals for these select cryptocurrencies.
Luno also provides a host of learning resources on cryptocurrencies and financial literacy for beginners.
Understanding cryptocurrency taxes on the Luno wallet
As a trader, it's important to understand cryptocurrency taxes. Purchases of crypto with fiat are not taxable, but you are taxed on any capital gains or losses when you sell or trade that crypto.
A common mistake is that since purchases of cryptocurrencies with fiat currencies are not subject to taxes, that you do not need to include them in your tax reporting. However, you need to keep track of your purchase date, amount, and the price at the time of purchase of your cryptocurrencies to determine your cost basis for future trades and sales of your cryptocurrency.
You can learn more about uploading your crypto purchases on the Luno wallet in our API and CSV detailed instructions below.
Trades on the Luno exchange application feature are taxable events
Your cryptocurrency to cryptocurrency trades in the exchange feature of the Luno wallet are subject to capital gain/loss taxes. If you plan on trading frequently, it is highly recommended that you use a crypto tax service from day one to track your transactions.
Tax reporting can be complex because you need to track every transaction over multiple years to correctly calculate your tax liability. A crypto tax software package can automatically sync, standardize, and calculate your taxes from multiple platforms for automated reporting.
Depending on the regulations established in your country of residence by the relevant tax authority, you may be able to reduce your tax liability via different accounting methods. Our TokenTax proprietary software minimization algorithm automatically calculates your tax liability for you. Additionally, you may be able to harvest your losses at the end of the tax year to strategically sell tax lots to minimize your tax bill for that tax year. You can read more about tax loss harvesting in our helpful guide.
Please reach out to us on our chat function or read our international tax guides for more information about your country of residence for specific tax requirements.
Sales of cryptocurrency for fiat currency are taxed
When you sell your cryptocurrency on the Luno application for your local fiat currency, your profits or losses are subject to taxes in most countries because most countries’ tax authorities consider crypto to be intangible assets or property.
You are typically taxed on the difference between your sale price and purchase price. Therefore, you need to track the date, sale price in terms of fiat currency and amount of cryptocurrency sold for your taxes. Fortunately, you can automatically import your Luno trade history into TokenTax crypto tax software for easy tax reporting.
FBAR considerations for Luno wallet users
Since Luno does not offer services to United States users, the Foreign Bank Account Report (FBAR) disclosure is not relevant.
Uploading a Luno CSV with TokenTax
On your desktop web browser, go to Luno and then to your Wallets,
Choose the Wallet of the statement you'd like to download (eg: BTC for BTC transactions). You should download statements for all wallets you have traded with.
Scroll to the bottom of the wallet page in question (eg: BTC) and click 'Download Statement'.
Enter the beginning date and the end date of your request. Select your entire trading history range.
Click 'Create Statement' and wait a few moments,
Scroll down and click 'Download' (be sure to select the correct statement with the dates you requested)
Upload your XLSX file to TokenTax.