If you’ve ridden into the depths of margin exchanges like Bitmex, then you’re probably wondering how to handle your taxes. TokenTax can help you incorporate activity on these platforms into your crypto tax filing.
Crypto margin trading taxes
Margin trading is when you borrow funds from either the exchange or from other exchange users in order to trade larger positions with the ability to go long or short. You are tax liable for any gains you make while margin trading.
If you lose assets in a margin call or liquidation, those detract from your margin profits. Crypto lost in margin trading either via closing a position at a loss or a margin call / liquidation is treated as a sale, meaning you recognize any capital gain or loss on that crypto.
Popular trading cryptocurrency exchanges that we support include Bitmex, Deribit, Bybit, Bitfinex, Kraken, and Poloniex.