Ethereum - Cryptiony - crypto tax automation solution

How to File Your Ethereum Taxes With Cryptiony

Ethereum is the most popular blockchain with hundreds of use cases; this can make calculating your crypto taxes tricky. Luckily, you can do this automatically with Cryptiony.

This guide will show you the quickest and easiest way to file Ethereum taxes using the Cryptiony automated tax software.

What is Ethereum?

If you have used crypto, you probably know what Ethereum is. But for a quick recap, it is the first smart-contract blockchain, now with thousands of dApps, validators and the highest TVL across all chains. That said, it’s the most popular blockchain by almost all metrics.

There is a wide range of applications on Ethereum, with DeFi protocols, NFTs and Play-to-Earn gaming allowing users to generate income. This makes keeping track of your taxes and transactions difficult – but the Cryptiony tax calculator makes things much easier!

How do I calculate taxes on Ethereum transactions?

There are three main options for calculating Ethereum taxes: using Cryptiony, an accountant or doing it yourself. Compared to an accountant or “DIY”, our tax software saves you time and money while giving you peace of mind that your taxes are correct. It is always a good idea to let experts handle your taxes, as UK crypto tax regulations are some of the most stringent in the world. But besides being more current with crypto tax, Cryptiony is much cheaper and faster than most accountants. Our app is based on the most up-to-date tax laws, so you can rest assured your taxes will always be filed correctly.

How to Import Ethereum transactions to Cryptiony

To calculate your Ethereum taxes with Cryptiony, you only need to import your wallet to our application. Importing your Ethereum wallet to Cryptiony is quick and easy. Just follow the steps below.

But before you start, you need your wallet address. Depending on your wallet provider, you can see it on your wallet home screen or by clicking receive; it’s the long number beginning with 0x.

Step 1

Step 2

From the Cryptiony dashboard, click transactions, then connect the wallet. .

Step 3

Select Ethereum, then name the wallet and input your wallet address.

Step 4

Select connect wallet.

Important things to know about importing Ethereum transactions

To ensure we attribute all your transactions to the correct taxes, sync all your wallets and exchanges.

It’s always best to double-check that all your transactions have been imported correctly. You can do this by clicking taxes on the left navigation bar, scrolling to the bottom of the summary and selecting the transaction list. Then you can ensure all your transactions are included and attributed correctly.

If your transactions have not been imported correctly, please visit our help centre.

FAQs

Do you pay taxes on Ethereum UK?

Any time you sell (or transfer assets to someone else) on the Ethereum network, it is classed as a disposal and is taxable. HMRC requires you to report all disposals to them in an end-of-year tax report. But this is all handled for you with Cryptiony, so you can relax without overthinking about problematic tax rules.

How to avoid paying taxes on Ethereum in the UK?

You cannot avoid paying taxes on disposals, but you can use tax-free allowances and legal tax reduction methods such as HODLing. Keeping track of your Ethereum transactions throughout the year is also a great way to prevent any nasty surprises when you file; you can do this with the Cryptiony tax software.

Are Ethereum gas fees deductible in the UK?

In the UK, gas fees are an allowable expense that you can deduct from your profits. The issue with gas fee deductions is that they can be tiresome to calculate manually, but our software deducts them automatically, saving you time and energy.