Optimism is the second-largest layer 2 scaling solution for Ethereum that utilises Optimistic rollups to bundle fast transactions and reduce costs.
Optimism chain activities such as NFT and trading can lead to taxes on your portfolio. Calculating the taxes levied on these activities can prove to be a challenging task due to the type or volume of transactions, the price at which they were bought, etc.
KoinX assists investors in this by providing a one-stop solution for managing their cryptocurrency taxes and portfolios.
Here is a step-by-step guide on how to generate your Optimism chain tax report from KoinX.
A step-by-step guide on how to Integrate your Optimism chain with KoinX
KoinX allows you to calculate your crypto taxes with ease. Here’s how you integrate it with the Optimism chain:
Step 1: The first step would be signing in to your KoinX account with your credentials.
Step 2: Locate the “Integrations section” at the top and select the “Blockchains” category.
Step 3: Select the Optimism option from the list of blockchains available.
Step 4: You can add a custom name of your choice. This name will help you identify your wallet later on.
Step 5: Finally, enter your public address. This is nothing but the receiving address or account address that you see on your wallet, like “Metamask” or “Trust” as shown above.
Step 6: Once you’ve entered your public address, double-check that it’s correct, and then hit the “Submit” button to complete the integration process as shown above.
All your transactions on the Optimism chain are now added to KoinX. We import all your transactions across all years, including ERC-20 transactions.
Watch how to generate your Optimism tax report with KoinX
Take the first step towards stress-free crypto tax reporting. Watch our tutorial on generating your Optimism tax report with KoinX and start saving your precious time and money today!
We are there where it is a crypto tax liability to adhere to.
Important Things to Consider While Generating Your Optimism Tax Report with KoinX
- Please make sure that all of your integrations have been connected.
- KoinX automatically synchronises transactions from your wallet address at regular intervals. However, if you need to synchronise it at any other time, please utilise the ‘Sync Now’ feature available on KoinX.
How To Easily Calculate & File Your Optimism Taxes using KoinX
Step 1: Add all the chains and exchanges where you have an account
KoinX supports a wide range of major crypto exchanges and wallets, which enables anyone to conveniently import all their transaction data, in one place.
Step 2: Review your transactions.
KoinX will automatically categorise all transactions and compute gains and losses accordingly, ensuring 100 percent accuracy and compliance with the latest tax regulations.
Note: If you see warnings in your portfolio, refer to this article to fix the issues.
Step 3: Generate your tax reports for the selected Financial Year
KoinX produces all the essential tax reports while providing a clear breakdown of one’s crypto tax obligations.
You have the option to categorise your trades as Capital Gains or as Business Income.
If you are trading in crypto as a secondary source of income (like just passively investing for returns) then please select Capital Gains.
If you are trading with the intent of making crypto as your primary source of income, then please select ‘Business Income’.
Step 4: File your taxes
Export tax reports directly from KoinX and import them into your preferred tax software, or provide them to your tax professional for swift and hassle-free filing.
Frequently Asked Questions
Do I need to report my Optimism chain for tax purposes?
Yes, according to the government of India (the 2022 budget, if you trade, sell, or spend crypto, you will be subject to a 30% tax on profits. This applies to these activities on the Optimism chain as well.
Does Optimism chain provide tax reports?
No, Optimism Chain does not provide any kind of tax report. You may track and generate your crypto tax reports from your Optimism investing activity by integrating your account with KoinX.
How are Optimism transactions taxed in India?
Optimism transactions, including trading, selling, or spending crypto, are subject to a 30% tax on profits, as per the 2022 Indian budget. Investors selling crypto assets for more than INR 50,000 or INR 10,000 in a financial year may also face a 1% TDS.
How does Optimism tax reporting with KoinX work?
With KoinX, you can easily generate tax reports for your Optimism investments. Once integrated, KoinX will automatically sync all your transactions and produce downloadable tax reports that can be used for filing your taxes or being shared with your tax professional.
What are the most common issues with importing transactions from the Optimism to KoinX?
Even though the KoinX and Optimism Chain integration is seamless, there are instances where you sometimes upload the wrong address or the address might be missing characters. Try double-checking the file before uploading.
How do I troubleshoot my Optimism integration with KoinX?
If you encounter any issues despite following the above steps, don’t hesitate to contact our support team through our chat, social media, or by emailing email@example.com. Our customer support executives will respond promptly and will be glad to assist you with any questions you may have within 24 hours.