Incorporate net futures gains into tax reports
Currently, users see net futures gains calculated and displayed in the tax center, but this is not included on tax forms.
This post tracks the request to incorporate net futures gains into tax reports.
For the time being, we highly recommend checking with a tax professional on how you can include Net Futures Gains when filing. As a workaround, some of our users have manually added a line item on the Capital Gains CSV or form 8949 called 'Net Crypto Futures' and added the total profit/loss in one line item. In addition to this, it can be added to the Schedule D manually. A tax professional should be able to tell you if this is the right approach for you.
- Capital Gains CSV
- Tax Integration files
Per the Margin Trading Tax Guide, margin trades should be incorporated into 8949 and schedule D.
Description of property = underlying asset (e.g. BTC, ETH, etc.)
Date acquired = date position opened
Date sold = date position closed
Proceeds = PnL
Cost or other basis = $0.00
Gain = PnL
Note: it's fine if the PnL is negative
We should still show the net gain/loss amount separately on Net Futures Gain line on the tax page, but can combine it for the net total on the dashboard. "Margin" tagged transactions should basically be in their own cost basis queue and excluded from capital gains calculation (using the same logic as we have for Kraken/BitMEX).
We may include disclaimer text: Margin trading incorporated into 8949 and schedule D per margin trading tax guide. This does not support traders making 475(f) elections, Section 1256 contracts, and other advanced tax elections. Consult a tax advisor to see how this may apply to your specific tax situation.