Uphold is a multi-asset trading marketplace that offers a wide range of financial products and services. The platform supports over 130 digital currencies and allows traders to trade precious metals and fiat currencies. The Uphold exchange is quite transparent when it comes to its fee structure. It doesn’t charge any maker-taker fees, deposit fees, and no commissions. It only charges spread fees, which is quite high and it doesn’t go well with active traders because along with paying Uphold crypto tax, high fees can negatively impact their profits.
In this informative piece, we will provide information about Uphold tax documents and a few other important aspects.
Connecting your Uphold Address to ZenLedger For Your Uphold Tax Forms
As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 500+ exchanges.
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you’ll see a table that outlines the possible methods. We support a direct API code import for many centralized exchanges, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the “Exchanges” tab of the “Imports” page. Select the exchange that you are looking to import, and instructions will be provided for that specific exchange!
Who Should Use Uphold?
Traders looking for a stress-free user interface where they don’t have to search around the website for simple features will definitely enjoy the platform. The registration process is so simple that you can immediately trade once you create your account and fund it via a credit card or a bank account. However, the exchange charges a 3.99 percent fee on deposits via a credit card in the US.
Other than that, the Uphold exchange is a great option for traders who want access to a wide variety of cryptocurrencies. However, one aspect that might now sit well with traders might be the high fees, even for low-volume trades. The exchange doesn’t offer discounts for larger trades. In short, Uphold charges the same high percentage of spread regardless of size.
With that out of the way, let’s look at Uphold crypto tax and Uphold tax documents
Advantages of Uphold!
Uphold offers several advantages as a cryptocurrency exchange and digital wallet platform:
- Diverse Asset Support: Uphold allows users to trade and hold a wide variety of assets, including cryptocurrencies like Bitcoin, Ethereum, and altcoins, as well as traditional assets such as fiat currencies, stocks, and precious metals. This diversity can help users create a diversified investment portfolio.
- User-Friendly Interface: Uphold provides an intuitive and user-friendly interface, making it accessible to both beginners and experienced cryptocurrency users. It’s designed to simplify the process of buying, selling, and managing assets.
- Security Measures: Uphold prioritizes security, implementing encryption, two-factor authentication (2FA), and other security features to protect user accounts and assets. They also offer insurance coverage for digital assets stored on their platform.
- Fiat Onramps: Uphold supports various deposit and withdrawal methods, including bank transfers and credit/debit card transactions. This makes it easy for users to convert traditional fiat currencies into cryptocurrencies and vice versa.
- Global Availability: Uphold is available to users in many countries around the world, making it accessible to a broad user base. It also supports multiple fiat currencies, allowing users from different regions to trade without currency conversion hassles.
- Regular Asset Additions: Uphold frequently adds support for new cryptocurrencies and traditional assets, keeping its offerings up-to-date with the evolving cryptocurrency market and investment landscape.
- Transparency: Uphold strives for transparency in its operations, providing real-time reserve data on its website. Users can verify that their digital assets are fully backed by real holdings.
- Mobile App: Uphold offers a mobile app, that allows users to manage their assets on the go, which is convenient for those who prefer mobile trading and transactions.
- Liquidity: Uphold provides access to liquidity for various assets, enabling users to buy and sell assets quickly and efficiently.
- Educational Resources: Uphold offers educational resources and content to help users understand cryptocurrency and asset management, making it a useful platform for newcomers to the space.
It’s important to note that while Uphold offers these advantages, users should conduct their research, consider their specific needs, and be aware of potential fees associated with using the platform. Additionally, the cryptocurrency market can be highly volatile, so users should exercise caution and make informed investment decisions.
How are My Uphold Transactions Taxed?
According to the Internal Revenue Services (IRS) cryptocurrencies are seen as property and investors/traders have to pay capital gains tax when sold and ordinary income tax when earned.
Capital gains tax: Whenever you sell your crypto tokens, you’ll either incur a capital gain or loss. It depends on the ups and downs of your token since you initially received it. Like any other exchange, selling your tokens on Uphold is also seen as a disposal event.
Ordinary income tax: Whenever you receive cryptocurrency, it will be considered ordinary income based on the fair market value of the token.
How is My Uphold Debit Card Taxed?
The exchange has announced a launch of a debit card, which is going to offer rewards in USD and other crypto tokens. Currently, there are no guidelines on taxation on crypto debit cards, and rewards from debit card purchases are considered non-taxable rebates.
Does Uphold Report to the IRS?
When it comes to Uphold tax documents, the exchange issues 1099-B forms to both its users and the IRS containing details about your crypto transactions and other asset classes.
In case you don’t report your transactions on Form 1099-B, your transactions will be flagged automatically and you’ll receive a Notice CP2000, a letter with detailed information regarding the issues identified by the IRS in your tax form. The IRS also provides steps to resolve these issues.
It is important to note that your receipt of Uphold tax documents depends on the type of transaction you carried out during the financial year. So, you can receive multiple Uphold tax forms to complete your income tax reports.
You might receive form 1099-MISC if you have realized ordinary income from staking rewards, airdrops, referral, and affiliate bonuses, and DeFi interests if the combined amount goes to $600 or above.
What to Do If You Receive Form 1099 From Uphold?
In case you received Form 1099-B from Uphold, it’s crucial to remember that the IRS has also received a copy of the same form. However, Form 1099-Bs are notoriously known for their inaccuracies while reporting taxes.
Why Can’t Uphold Provide Me a Complete Tax Report?
When it comes to providing Uphold crypto tax forms, the exchange often cannot provide a complete tax report because users constantly use more than one crypto exchange, wallet, or trading platform. They transfer their tokens from one exchange to the other, making it difficult for exchanges like Uphold to track the original cost basis and gross proceeds for each coin. These pieces of information are necessary for the calculation of your capital gains and losses.
Unfortunately, Uphold’s reporting is limited to the Uphold platform. If you use multiple exchanges, wallets, or protocols, Uphold cannot provide the necessary tax information.
In such cases, ZenLedger, a crypto tax software can be the right tool for the job.
You can import all your transactions into ZenLedger via a CSV Import or an API code import. After doing this, the software automatically calculates your gains, losses, and cost bases from Uphold investing activity. After reviewing the transactions, the software auto-populates Uphold tax documents to report your taxes.
To Conclude
Uphold is among the best crypto exchanges that offer trading not only in cryptocurrencies but also in precious metals and forex. The simple user interface, a wide variety of coins, and instant account creation add the cherry on the cake.
Uphold FAQs
1. Do you pay taxes on Uphold?
Yes, you have to pay taxes on Uphold. The exchange reports to the IRS and issues 1099 Forms to both the user and sends a copy to the IRS. In case you don’t report your transactions on Form 1099-B, your transactions will be flagged automatically and you’ll receive a Notice CP2000.
2.Does Uphold report cost basis to IRS?
Uphold furnishes a 1099-B tax form for crypto. However, it is important to note that you receiving Uphold tax documents depends on the type of transaction you carried out during the financial year. So, you can receive multiple Uphold tax forms to complete your income tax reports.
3. Will Uphold send me 1099?
The exchange doesn’t mail Form 1099 to its users, but the form is accessible on the Uphold app, which the users can check out easily.
