Disclaimer: This post is for informational purposes only and should not be construed as tax or investment advice. Please speak to your own tax expert, CPA or tax attorney on how you should treat taxation of digital currencies.

CoinLedger allows users to customize the tax treatment of certain transaction types on their account. Read on below to learn how to customize your tax settings and treat transactions like mining, bridging, or trades as non-taxable.

The taxability of specific crypto transactions differs by country. In the United States, you incur a taxable event when you earn or dispose of cryptocurrency. When you dispose of cryptocurrency, you’ll recognize a capital gain or loss depending on how the price of your crypto has changed since you originally received it. Examples of disposals include selling your cryptocurrency, trading it for another crypto, and using crypto to buy goods and services.

On the other hand, when you earn cryptocurrency you’ll recognize income based on the fair market value of your crypto at the time of receipt. Examples of income include airdrop rewards, staking rewards, and mining rewards. For more information on how crypto is taxed, see our detailed breakdown here.

CoinLedger allows you to mark certain transaction types within your account as non-taxable; however, we strongly recommend consulting with a tax professional before deciding to customize the taxability of a transaction type on your account.

Within CoinLedger you can mark individual trades, composite swaps and bridges in your account as non-taxable. Currently, only individual trades, composite swaps and bridges can be marked as non-taxable, and this setting cannot be applied globally to your entire account.

To mark an individual Trade, Composite Swap or Bridge as non-taxable, locate that transaction on the Transactions page of your CoinLedger account. Next, select the three dots next to that individual transaction, and then press Mark as non-taxable from the drop-down menu of options.

Now, this specific transaction will be treated as a non-taxable disposal of your crypto. Your transaction will still be classified as a Trade, Composite Swap or Bridge, but you will see that it is labeled as Not-Taxable when you click on the transaction.

When you mark a specific transaction as non-taxable, this setting will only apply to that individual transaction and will not apply to any others. You can undo this action and make your transaction taxable once again by clicking the three dots next to a transaction and pressing Mark as taxable if you choose.

Note: If you'd like to make all Bridge transactions on your account non-taxable you can do so using the steps below.

Unlike trades, which can only be marked as non-taxable on an individual transaction-by-transaction basis, other transaction types can be marked as non-taxable globally, across your entire CoinLedger account. You can apply these settings to specific tax years on your account or to all tax years across your account depending on your preference.

Using the Tax Settings tools within your CoinLedger account you can toggle on or off the taxability of the following transaction types:

It's important to note that any changes you make on this page will apply globally across your entire account. For example, if you turn "Treat mining as income" OFF, all mining transactions on your account will be treated as non-taxable.

You also have the flexibility to apply these settings to specific tax years only, giving you greater control over how your transactions are treated from year-to-year. For example, if you wanted to toggle "Treat bridging as taxable" to OFF for 2024 but you did not want this to impact your tax report calculations from prior years, you could apply this setting exclusively to the 2024 tax year. This ensures that your tax treatment for bridging transactions is customized for 2024, while preserving your original tax settings from previous tax years.

Step 1

Navigate to your account Settings by clicking the profile icon in the top right corner of the page.

Step 2

Next, head to the Tax Settings page on your CoinLedger account and scroll down to the Report Settings section.

Step 3

Here you'll see multiple different options allowing you to customize the tax treatment of certain transaction types on your CoinLedger account. You can also apply these to a specific tax year or to all tax years on your account depending on your preference.
​

To apply a report setting to all tax years, make sure you select All Tax Years on the drop-down menu shown below. Then, customize your settings by toggling the appropriate buttons on or off based on your preference.

To apply settings to just one specific tax year, select a tax year from the drop-down menu shown below and then make your selections by toggling the appropriate settings on or off.

To undo any of these changes simply press the toggle button one more time.
​
​