Phantom X Cointracker • Phantom (2024)

FAQs

Does Phantom wallet report to the IRS? ›

Does Phantom automatically deduct taxes? No, as of 2024, Phantom does not automatically deduct taxes from crypto trades. However, Phantom might still report your crypto transactions to your country's tax authority, like the IRS or HMRC.

CoinTracker integrates directly with Phantom to make tracking your balances, transactions and crypto taxes easy.

CoinLedger vs CoinTracker. Here's why CoinLedger is the best CoinTracker alternative on the market. A ridiculously easy-to-use platform (rated 4.8 stars with 1,200+ reviews on Trustpilot). Customer support available for all customers.

CoinTracker is the best solution in the world for paying your crypto taxes, bar none. The integrations are simple and precise, and they've thought through all the edge cases. It is the best.

In the LLC context, the most common way to protect against phantom income is to include a provision—often called a tax distribution clause—in the operating agreement. A tax distribution clause requires the business to make distributions to cover the member's tax liability from allocated income.

Cryptocurrencies are traceable, with transactions recorded on a public ledger accessible to the IRS. The IRS uses advanced methods to track crypto transactions and enforce tax compliance. Centralized exchanges provide user data to the IRS. Use crypto tax tools like Blockpit for accurate reporting and compliance.

Unlike traditional cryptocurrencies, Monero uses ring signatures, stealth addresses, and confidential transactions to obfuscate the sender, recipient, and transaction amount. This means that transactions made with Monero are virtually untraceable, making it difficult for anyone to uncover your financial activities.

Scammers are very good at using CoinTracker to deceive people and make it appear like CoinTracker holds actual funds, even though this is not possible. Many scammers do this by adding “manual transactions” into your account (you may see a “Manual” tag on the transaction in CoinTracker).

Step 4: Upload Cryptocurrency Taxes to TurboTax

Click "Get my form" and proceed to authorize TurboTax to access your CoinTracker data. A paid CoinTracker plan is required to complete this step. After successful import, you'll see your total proceeds. Note that this reflects the total proceeds and not the taxable gains.

How can I avoid IRS with crypto? ›

There is no way to legally avoid taxes when cashing out cryptocurrency. However, strategies like tax-loss harvesting can help you reduce your tax bill legally. Converting crypto to fiat currency is subject to capital gains tax. However, simply moving cryptocurrency from one wallet to another is considered non-taxable.

CoinTracker was founded by Chandan Lodha and Jon Lerner in 2017. Lodha previously worked at Google as a Product Manager for 3 years. Jon worked as a software engineer at Google and later co-founded and acted as CTO of TextNow, a phone service.

Yes, all transactions using Phantom involving the disposal of a crypto asset are in most cases taxable. You must also pay income tax on earned crypto such as staking, airdrops, or interest.

Phantom stock unit payouts are taxable to the employee at ordinary income tax rates (generally higher than capital gains tax rates).

If you have digital asset transactions, you must report them whether or not they result in a taxable gain or loss.

Navigate to your Phantom 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.