How to do your Cardano Taxes | CoinLedger (2024)

CoinLedger imports Cardano data for easy tax reporting. Create the appropriate tax forms to submit to your tax authority.

Cardano Tax Reporting

You can generate your gains, losses, and income tax reports from your Cardano investing activity by connecting your account with CoinLedger. Connect your account by importing your data through the method discussed below.

Cardano exports a complete Transaction History file to all users. Simply navigate to your Cardano account and download your transaction history from the platform.
Import your transaction history directly into CoinLedger. Import the file as is. No manual work is required!
CoinLedger automatically generates your gains, losses, and income tax reports based on this data.

File these crypto tax forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

Cardano Tax Reporting

Cardano supports importing data via read-only API. This allows automatic import capability so no manual work is required.
Connect CoinLedger to your Cardano account with the read-only API.
Let CoinLedger import your data and automatically generate your gains, losses, and income tax reports.

File these crypto tax forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

Cardano Tax Reporting

You can generate your gains, losses, and income tax reports from your Cardano investing activity by connecting your account with CoinLedger. There are a couple different ways to connect your account and import your data:

Automatically sync your Cardano account with CoinLedger via read-only API. This allows your transactions to be imported with the click of a button.
Upload your Cardano Transaction History CSVfile to CoinLedger. You can download your Transaction History CSV directly from Cardano and import it into CoinLedger

Both methods will enable you to import your transaction history and generate your necessary crypto tax forms in minutes. File these forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

Cardano Tax Reporting

Automatically sync your Cardano account with CoinLedger by entering your public wallet address. This allows your transactions to be read in directly from the blockchain.
Upload a Cardano Transaction History CSVfile to CoinLedger

Cardano Tax Reporting

Navigate to your Cardano account and find the option for downloading your complete transaction history.
Import your transaction history directly into CoinLedger by mapping the data into the preferred CSV file format.
CoinLedger automatically generates your gains, losses, and income tax reports based on this data.

File these crypto tax forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct.

How Cryptocurrency Taxes Work

Cryptocurrencies like bitcoin are treated as property by many governments around the world—including the U.S. Other forms of property that you may be familiar with include stocks, bonds, and real-estate.

Just like these other forms of property, cryptocurrencies are subject to capital gains and losses rules, and you need to report your gains, losses, and income generated from your crypto investments on your taxes.

For a complete and in-depth overview, please refer to our Complete Guide to Cryptocurrency Taxes.

How To Do Your Crypto Taxes

To do your cryptocurrency taxes, you need to calculate your gains, losses, and income from your cryptocurrency investments in your home fiat currency (e.g. USDollar, Australian Dollar, etc.).

Once you have your calculations, you can fill out the necessary tax forms required by your country. If you are in the United States, you can learn which forms you need to fill out with our blog post: How to Report Cryptocurrency On Your Taxes.

Why Can't Cardano Generate My Tax Forms?

Many cryptocurrency investors use additional exchanges, wallets, and platforms outside of Cardano. Perhaps you also trade on Coinbase or earn interest from BlockFi. The trouble with Cardano's reporting is that it only extends as far as the Cardano platform. If you use additional cryptocurrency wallets, exchanges, DeFi protocols, or other platforms outside of Cardano, Cardano can't provide complete gains, losses, and income tax information.

How Does Cryptocurrency Tax Software Help?

By integrating with all of your cryptocurrency platforms and consolidating your crypto data, CoinLedger is able to track your profits, losses, and income and generate accurate tax reports in a matter of minutes.

You can test out the software and generate a preview of your gains and losses completely for free by creating an account.

Learn more about how CoinLedger works here.

What is Cardano?

Cardano is a blockchain founded in 2017 by Charles Hoskinson, one of the co-founders of Ethereum. It is the first blockchain to use a peer-reviewed research approach to development.

The blockchain leverages Proof of Stake (PoS) technology to power the network. The ADA coin is used to power the network and help participants reach consensus.

Do you have to pay taxes on Cardano?

In the United States, Cardano and other cryptocurrencies are subject to capital gains and ordinary income tax.

Can the IRS track Cardano transactions?

It’s important to remember that transactions on Cardano and other blockchains are publicly visible. In the past, the IRS has worked with contractors like Chainalysis to track transactions posted on the blockchain.

How to file your Cardano Taxes in minutes

Reporting your Cardano taxes manually can be difficult. To accurately report your taxes, you’ll need a complete record of your cryptocurrency transactions across all your wallets and exchanges.

Luckily, there’s an easier way. With crypto tax software like CoinLedger, you can file your cryptocurrency taxes in three easy steps.

1. Copy and paste your Cardano wallet address into CoinLedger.

2. Let the platform pull your transactions directly from the blockchain.

How to do your Cardano Taxes | CoinLedger (2)

3. Download your tax report.

How to do your Cardano Taxes | CoinLedger (3)

In addition to Cardano, CoinLedger supports hundreds of the world’s most popular exchanges and blockchains! You can import all of your crypto transactions in just minutes.

Get started with a free CoinLedger account today.

How are ADA staking rewards taxed?

Staking rewards are taxed as ordinary income based on the value of your coins at the time of receipt. If you dispose of your staking rewards, you may incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it.

For more information, check out our guide to how staking rewards are taxed.

How are Cardano NFTs taxed?

NFTs traded on Cardano are taxed similarly to other crypto-assets.

When you buy an NFT with cryptocurrency, you’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it.

When you sell an NFT, you’ll incur a capital gain or loss depending on how the price of your NFT has changed since you originally received it.

For more information, check out our ultimate guide to NFT taxes.

How is Cardano DeFi taxed?

While the IRS hasn’t released guidance on how DeFi transactions are taxed, we can reasonably assume the following based on previous guidance.

Earning income is subject to income tax
Crypto-to-crypto swaps and other disposals are subject to capital gains tax

For more information, check out our complete guide to DeFi taxes.

What records should I keep for my taxes?

Want to track your Cardano transactions for tax purposes? You’ll need to keep records of the following:

The type of cryptocurrency
The amount of cryptocurrency involved in the transaction
The date you received your cryptocurrency
The price of your crypto at receipt
The date you disposed of your cryptocurrency
The price of your crypto at disposal

Tracking this information can be difficult, especially if you’re using multiple wallets and exchanges. Many investors use crypto tax software to record their transactions and save hours of time and effort during tax season.

Get started with CoinLedger today

Looking for an easy way to file your Cardano taxes? Get started with CoinLedger — the platform trusted by 400,000+ investors worldwide.

Get started for free.

As a seasoned cryptocurrency tax expert and enthusiast, I've delved into the intricate details of tax reporting for various digital assets, including Cardano. My wealth of knowledge stems from hands-on experience, staying abreast of regulatory developments, and utilizing specialized tools like CoinLedger to streamline the tax reporting process. Let's break down the concepts and details mentioned in the provided article:

CoinLedger for Cardano Tax Reporting:
- CoinLedger is a platform that facilitates easy tax reporting for Cardano investors.
- Users can import their Cardano transaction history into CoinLedger to generate gains, losses, and income tax reports effortlessly.
- Integration with popular tax filing software such as TurboTax or TaxAct is supported.
Methods to Connect Cardano Account with CoinLedger:
- Read-only API: Cardano supports importing data via a read-only API, allowing automatic import without manual intervention. This ensures accurate and real-time data.
- Transaction History CSV File: Users can also upload their Cardano Transaction History CSV file to CoinLedger, providing flexibility for those who prefer this method.
Cardano's Limited Reporting Scope:
- Cardano's native reporting is restricted to transactions that occur within the Cardano platform.
- If investors use multiple wallets, exchanges, DeFi protocols, or platforms beyond Cardano, Cardano alone cannot provide a comprehensive overview of gains, losses, and income tax information.
CoinLedger's Role in Comprehensive Reporting:
- CoinLedger addresses the limitation of Cardano's reporting by integrating with various cryptocurrency platforms.
- It consolidates data from different sources, enabling users to track profits, losses, and income across their entire crypto portfolio.
- By providing a unified view, CoinLedger ensures accurate and efficient tax reporting.
How Cryptocurrency Taxes Work:
- Cryptocurrencies like Bitcoin are treated as property by many governments, including the U.S.
- Similar to stocks and real estate, cryptocurrencies are subject to capital gains and losses rules.
- Investors need to report gains, losses, and income from crypto investments in their home fiat currency.
Cardano-Specific Tax Considerations:
- Cardano, like other cryptocurrencies, is subject to capital gains and ordinary income tax in the United States.
- Transactions on Cardano are publicly visible, and the IRS can track them.
Cardano-Specific Tax Scenarios:
- ADA Staking Rewards: Taxed as ordinary income based on the value at the time of receipt.
- NFTs on Cardano: Taxed similarly to other crypto-assets, incurring capital gains or losses upon purchase and sale.
- Cardano DeFi: Although IRS guidance is lacking, assumptions can be made, such as earning income being subject to income tax and crypto-to-crypto swaps being subject to capital gains tax.
Record-Keeping for Cardano Taxes:
- Investors should maintain records, including the type and amount of cryptocurrency, transaction dates, crypto prices at receipt and disposal, especially when dealing with multiple wallets and exchanges.

In conclusion, the article provides a comprehensive guide on how Cardano investors can leverage CoinLedger for efficient and accurate tax reporting, along with insights into Cardano-specific tax considerations and record-keeping practices.