Due to its affiliation with the Code is Law principle, Ethereum Classic is popular with many hardcore crypto enthusiasts who hope for a more decentralised society.
This guide will discuss how to calculate your Ethereum Classic taxes quickly and automatically. Let’s begin.
Ethereum Classic is an Ethereum hard fork that began after a disagreement regarding compensating users for a hack on the Ethereum network in 2016.
While most of the community agreed to reimburse the users and reverse the hack, a portion disagreed based on the Code is Law principle.
Since its inception, Ethereum Classic has been on a different path to Ethereum, using its own consensus mechanism and having its own set of dApps. However, Ethereum Classic is still an EVM-compatible blockchain, meaning you can use the same wallet for Ethereum Classic as other EVM chains.
With that said, you must import each chain’s transactions separately to calculate your taxes with Cryptiony.
The cheapest and fastest way to calculate your Ethereum Classic taxes is with an automated crypto tax calculator.
Regarding tax software, Cryptiony is the fastest on the market, with blockchain syncing times of less than two minutes and no data gaps. Moreover, your first 500 are free, so there is no risk in trying it out.
To get started with Cryptiony, you must import your Ethereum Classic transactions to the app. Once you have done this, you can generate a tax report that is ready to file to HMRC.
The only thing you need to import your Ethereum Classic wallet is your wallet address. You will find this on your wallet home page or by clicking “receive crypto” (it is the long number starting with 0x).
Sign up for Cryptiony.
From the Cryptiony dashboard, click transactions, then connect the wallet. .
Select Ethereum Classic, then name the wallet and input your wallet address.
Select connect wallet.
To ensure we attribute all your transactions to the correct taxes, sync all your wallets and exchanges.
Although our software is accurate, 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.
Although ETC is decentralised and censorship-resistant, HMRC requires you to pay tax on any profits you make on the blockchain. This includes payments from other users, capital appreciation or DeFi and mining profits. You can quickly determine how much tax you owe on Ethereum Classic transactions by importing your ETC wallet to Cryptiony.
Short answer: Yes. In the UK, mining is attributed to Income Tax, so you will owe taxes on coins you earn through PoW mining on Ethereum Classic.
Most Ethereum transactions are attributed to Capital Gains Tax, for example, receiving assets from another user and capital appreciation. However, if you mine crypto, earn through DeFi or are classed as a professional trader, you may be subject to income tax. If you use Cryptiony, we handle the attributions for you.