DeFi activity is more than just staking your crypto. DeFi allows users to take part in traditional finance activities like lending, liquidity deposits, mining, swapping, work income, interest or rewards. DeFi covers a broad range of activity and can be captured in several ways in Ledgible using the Tax Category attribute for transactions.
- For API connected exchanges, Ledgible will automatically classify DeFi transactions accordingly if this information is provided by the API.
- Ledgible will automatically categorize DeFi transactions appropriately if an address is added with those transactions on the Ethereum, Algorand, or Celo blockchains via the Standard Wallet option to add your wallet's address(es).
- You can include DeFi and other categories when adding a data source using the File Import option.
The file import options that accept a Tax Category are the Template File Import option for unlisted Exchanges and the Standard Wallet option for Wallets, and the available options will differ depending on transaction type. When adding transactions using the Defi Activity file import option for Wallets, which allows you to enter staking and crypto-to-crypto swaps, the category will automatically be set. Copy the columns from your original transaction history spreadsheet to a copy of the appropriate template file prior to uploading it for the smoothest experience (although you also have the option to map each field if you upload your transaction history file as-is). - Any DeFi transactions can be added manually. Please see this article from our Knowledge Base for an example of how to add a manual entry for staking rewards.
- Finally, if the relevant transactions have already been added to Ledgible, from the Transactions tab you can set a category for a transaction from the Actions column or use the Categorize button to create rules that can add (or remove) the category for matching transactions in bulk.
Mining income and other transactions that would be considered income per IRS guidelines can be reported on for tax purposes by running the Income Transaction Export report. Similar reports are available for donations and gifts as well.