Have you been using Abra to trade cryptocurrencies or earn crypto interest in the US? If you use Abra or other crypto exchanges available for US residents, you must pay attention to the crypto taxes involved.
Abra is a leading crypto application where US users can buy and trade crypto, earn interest by locking some of their crypto holdings, borrow stablecoins, and more.
Let’s discover how these crypto operations are taxed in the US, how to track your crypto portfolio from Abra, and how to do your Abra taxes.
In this guide:
Can US citizens use Abra?
Yes, Abra is available for users in the United States, but its earning product is only available for institutions and individuals who are accredited investors in the US.
Does Abra wallet report to IRS?
Any exchanges, wallets, or brokers operating in crypto can be requested to share customer information with authorities like the IRS. This is not exclusive to Abra but applies to crypto providers serving US customers.
Do you pay taxes on trading crypto on Abra?
If you trade cryptocurrencies in an application like Abra, you’d have a taxable event subject to capital gains taxes in the US.
In the US, crypto-to-fiat and crypto-to-crypto trades are taxable events, and you must report the gains/losses from those trades in your taxes.
Your capital gains tax rate will depend on the holding period of your cryptocurrencies. If you hold your digital assets for more than 12 months, you’d have a long-term capital gains tax rate and effectively lower your tax bill, with a rate ranging from 0% to 20%, depending on your personal situation.
If you help your crypto for 12 months or less, you have a short-term capital gains tax rate ranging from 10% to 37%.
Do you pay taxes when earning crypto interest on Abra?
Yes, if you earn crypto from interest vehicles or staking, you’d have a taxable event subject to income taxes.
When you receive crypto interest rewards from Abra, you have to determine their Fair Market Value (in USD) when you receive them and report them in your US individual Income tax Return.
Do you pay taxes when borrowing crypto from Abra?
Borrowing funds is not taxable in the US, whether you receive FIAT (e.g., US dollars) or cryptocurrencies (including stablecoins like USDT). If you receive a crypto loan from Abra, you won’t have to report it on your tax return or pay any tax on it.
How do I get CSV with my trades from Abra?
You can track your crypto trades from Abra with CoinTracking by firstly exporting a CSV from Abra by following these steps:
1. Open your Abra mobile app and select Transaction History in the menu
2. Press the link to receive the transaction history via email
3. Once received, download the CSV file in the email
How to track Abra trades?
You can import all of your Abra trades into a crypto software like CoinTracking with our Abra CSV importer.
How do I file my taxes with Abra?
You can do your Abra taxes by importing your entire Abra trades into a crypto tax software like CoinTracking, determining your gains/losses, and generating compliant tax reports.
If you have capital gains/losses, you’d have to report those individual gains/losses on the right tax forms for crypto, like Form 8949 and Schedule D of your Form 1040.
If you have crypto rewards from interest products, you’ll have to report their FMV at the time of your receipt on your US Individual Income Tax return.
The best Abra tax software: CoinTracking
The best crypto tax software in the market is CoinTracking.
You can import your trades using CSV or API, track your gains/losses, and generate tax reports according to your preferred accounting method.
CoinTracking is your full crypto tax solution for:
DeFi and NFT support with our ETH+DEX importer.
Importing your Binance Chain, Binance Smart Chain, and MATIC transactions.
25+ advanced reports, including which coins offer you a tax-free rate.
Automatic capital Gains, according to 12 accounting methods (e.g., FIFO, LIFO, HMRC, ACB), accepted worldwide.
Generating complete Tax Reports in your country.
Moreover, CoinTracking can easily classify all your earnings from yield farming, liquidity pools, crypto staking, and much more.
Crypto taxes with no errors: CoinTracking Full Service in the US
CoinTracking also offers a Full Service for US traders. A crypto reconciliation tax expert from Polygon Advisory Group, a leading US crypto tax firm, will review your CoinTracking account, help fix any errors, and ensure you submit your crypto tax reports error-free.
Do you have any crypto tax questions? Check the best guides:
How are rebase token protocols taxed?
Do you pay taxes on fan tokens?
Do you pay taxes when trading stablecoins?
How is Yield Farming Taxed?
DeFi Taxes: The Complete Guide.
How to save taxes with a Bitcoin IRA.
Do you pay taxes for receiving Bitcoin tips?
Uniswap Taxes Guide
How to calculate taxes with Bitcoin dollar-cost averaging?
FIFO for crypto taxes? Implications of accounting methods.
NFT Taxes: The Complete Guide.
Is Bitcoin taxable? The ultimate guide for 2021 taxes.
This post is part of the Crypto Taxes AMA series. Follow our weekly AMAs on Twitter where our expert CPA, Sharon Yip answers your crypto tax questions. You can download 35+ AMA crypto tax reports for free.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.