Ryan
2 min readApr 26, 2022

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I used Koinly. Here is my affiliate referral link:

https://koinly.io/?via=BC1455B9

It was able to recognize my MetaMask BSC DRIP transactions, whereas Cryptotrader.tax was not.

If possible, make a little spreadsheet of transactions. The Koinly for the most part recognized all the major transactions. Where it had a problem that I had to go back and reconcile was when I acquired a token from an outside source - the software thought I bought the token at $0 which artificially inflated my taxable income when selling/swapping the same token. It was annoying for me because I had thousands of transactions.

The bscscan site worked well to help me reconcile. I suppose I could write up something about taxes, might be of interest to other people.

Also, since drip is giving us all this income, make sure you are sequestering a portion of your funds to save up for the taxes on it. If you have a good accountant, you might be able to offset your drip gains with other deductions elsewhere.

For me, I take a worst case scenario and and split my offloaded profits into a 60/40. I really don’t know what my taxes will be, but having something saved up is better than not! I leave 60% in my checking account for use, then transfer 40% to my savings account. It is not meant to earn interest, but as a reservoir that I would not be tempted to use to buy more crypto. It would probably be ok to park the tax money somewhere to earn interest like a stablecoin, but just make sure to make it liquid near tax time.

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Thanks!!
Ryan

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Ryan
Ryan

Written by Ryan

Insider Tips & Resources for passive income w/ focus on trading, crypto, and affiliate marketing. Top Writer on Medium.com for Investing and Finance

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