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How to Do Your Metamask Taxes & Integrate Metamask with Accointing

To use Accointing's free portfolio tracker, or to compute your Metamask taxes for desktop and mobile, you must connect Metamask to Accointing either by CSV or automatically.

To assist you to prepare your Metamask tax records and report crypto tax, we have put together this guide. Take advantage of this guide to learn everything you need to know about the tax implications of your Metamask transactions, staking, and loans. Accointing, a cryptocurrency tax software, can generate a personalized Metamask tax statement from your Metamask trading history within minutes

What is Metamask?

Metamask is an Ethereum wallet that can be installed in your browser just like every other plug-in. Tokens such as Ether and various other ERC-20 tokens can be stored in the app, allowing users to transact through any Ethereum address.

How is Cryptocurrency Taxed?

Yes! Bitcoin (BTC) and other virtual currencies are taxable!

The Internal Revenue Service (IRS) refers to cryptocurrency as virtual currency. For tax purposes, virtual currency in the blockchain, (be it Bitcoin or Ethereum) is recognized as property and is liable to capital gains tax and income tax.

  • Capital gain tax - An investor's capital gains tax is imposed when he or she sells a cryptocurrency investment and makes a profit. The tax is on the profit realized from the sale.
    E.g. - You paid $2,000 for one hundred shares, which you then sold for $5,000. Your capital gain is $3000. Your capital gain tax is calculated at $3000.
  • Income tax - income taxes are levied against people and businesses concerning their earnings or profits.
    E.g. - A person's income might be earned (like a salary or commission) or unearned (like interest, rent, or dividends). 

How Are Gas Fees Taxed? 

There is a gas fee for every Ethereum transaction. The specifics of your transaction will determine whether your gas fee is tax-deductible.

For example, you can buy 1 ETH for $6,000, and gas costs $200. The cost basis has changed to $6,200. You finally get $7,000 for your ETH. Gas costs $200. To your basic cost, add $6,200. 

Does Metamask Report to the IRS?

The IRS cannot keep an eye on Metamask transactions because Metamask does not give the IRS any information about its transactions. Metamask does not have to send any information to the IRS because Metamask is an ETH wallet, and the IRS cannot keep track of Metamask.

How Does Metamask Tax Reporting Work?

Here, you can analyze your Metamask tax report and transaction records, calculate your Metamask taxes, and produce a tax report in the format required for your country using Accointing's Metamask calculator and portfolio tracker.

Accointing requires that you first link your Metamask wallet and then import your Metamask transaction.

There are a variety of approaches to this problem:

  • Automatic - Let us know your Metamask wallet address, and we will do the rest.
  • CSV file - Export transaction history from Metamask wallet and import into Accointing
  • Accointing template - Look at our data entry template, fill it out, and then submit it.

Integrate with Accointing Via the Metamask Wallet Address

In this section, you will find out how to use the API to add your Metamask to Accointing.

  1. To get started, launch Metamask
  2. Then, choose the account you wish to import into Accointing and click "Copy to clipboard".
  3. Copy and paste the address of your Metamask wallet into Accointing.

Integrate with Accointing Via the Metamask CSV/XLSX File

Downloading CSV files from Metamask 

If you don’t want to link your Metamask wallet with Accointing directly, you can also do so by importing a CSV file containing your history of trades, withdrawals, and deposits. Here is a simple step to go about it.

  1. Go to Etherscan and find your Metamask wallet
  2. At the bottom, you will find all your previous purchases
  3. Click on the "Download CSV Export" link at the bottom to the right
  4. SA dialog box will open, select a date range
  5. Enter the dates and captcha and hit "Download" to get the file.
  6. You should have a file called "export-" in your downloads folder, along with your wallet address. In this file, you should find a complete record of every transaction involving your wallet during the specified period (excluding internal transactions).

Importing CSV Files into Accointing

  1. Go to your Accointing profile and add a wallet by clicking the button that says, "Add wallet".
  2. Select Metamask Pro from the drop-down menu.
  3. To continue, select "Import a file" and then click "Continue."
  4. Your wallet's name should be "Metamask Pro," and the CSV file you downloaded should be selected.
  5. In the drop-down menu, choose "Import All."

How to Review and Track Your Metamask Transactions in Accointing?

  • Your portfolio summary will appear on the Accointing dashboard after you import your Metamask transactions.
  • Metamask performance, earnings, and losses can be analyzed by selecting the appropriate beginning and ending dates.
  • To better understand your buy and sell dates, click on the various cryptocurrency assets. Additionally, you will be able to compare the performance of multiple assets at the same time.
  • Your Metamask investment portfolio transactions are now all easily accessible. Find out what assets are stored in which wallets or exchanges, as a bonus. 

Common Issues with Importing Transactions from Metamask

  • Because it is an online wallet, it is more vulnerable to hacking than other wallet types, such as hardware wallets.
  • The browser you are using, not MetaMask, has access to your data. All browsers, including Chrome, acquire personal information from their users, which may endanger their privacy.
  • Only Ethereum-based tokens are supported by MetaMask, leaving out the world's largest cryptocurrency, Bitcoin.