This page explains how to calculate tips paid in cryptocurrency.
Contents
1. General Calculation Methods (including Canada and the U.S.)
1. General Calculation Methods (including Canada and the U.S.)
The amount of cryptocurrency used as a tip is simply deducted from your position. No gains or losses are realized.
If you are filing a tax return in Japan, please refer to section 2 below.
2. Japan-Specific Methods
The National Tax Agency clearly stated in June 2021, in "Tax Treatment of Crypto Assets (FAQ)" No. 16 that gratuitous transfers are addressed. Accordingly, we have updated the tip calculation logic as follows.
Please note that whether a tip should be treated as a gratuitous transfer is ultimately determined by the relevant tax office.
| Date and Time When the Tip Was Given | Tip Calculation Logic |
| Until December 31, 2020, 23:59:59 | Only the position decreases in a way that does not affect profit and loss. |
| From January 1, 2021, 0:00:00 onwards | Sale at market price. |
▼ Example
Note: The same transaction type, but the calculation method varies by date and time.
When custom transactions are uploaded, for tips dated January 1, 2021, 0:00:00 and onwards, when the base currency is a currency supported by cryptact and the settlement currency is a fiat currency, leaving the Price field blank will result in the tip being calculated as a sale at market value. Please note that you cannot specify a price in the Price field for tips. If you wish to specify a price, please fill the Action as SELL instead of TIP.
▼ Example: Gave 0.0001 BTC as a tip to a friend on January 10, 2021, at 10:00:00
| Timestamp | Action | Source | Base | Volume | Price | Counter | Fee | FeeCcy |
|---|---|---|---|---|---|---|---|---|
| 2021/1/10 10:00:00 | TIP | Any | BTC | 0.0001 |
(blank *1)
|
JPY | 0 | JPY |
(*1) If the payment currency obtained is supported and the counter currency is a fiat currency, leaving the price blank will automatically use cryptact's market price information.