![]() That means anyone - the IRS included - can view the transactions a given wallet has made. ![]() Almost all blockchains - including Ethereum - are public ledgers. All your transactions on MetaMask will generally be public, all someone needs is your wallet address to view the transactions. Can the IRS see my MetaMask transactions? Due to the vague language used to describe crypto brokers, MetaMask and other non-custodial wallets may eventually be included in the tax reporting requirements for crypto businesses. As well as this, as a non-custodial wallet, MetaMask does not enforce KYC processes, so there's very little information to share! All this said, this may soon change as part of the Infrastructure Bill. MetaMask is a non-custodial wallet and IRS guidance does not currently require wallets to report income. It's unlikely MetaMask report to the IRS. However, for gas fees that are unrelated to acquiring or disposing of a crypto asset - like transferring crypto from or to your MetaMask wallet - many tax offices have released guidance saying these are not allowable as part of your cost basis calculations. In other words, you could add them to your cost basis and reduce your capital gain in a disposal event. If your transaction is related to acquiring or disposing of a crypto asset, your gas fees for the transaction may be an allowable cost. Income Tax: If you earn new coins or tokens - for example, through airdrops or staking rewards - this is usually viewed as additional income and subject to Income Tax upon receipt.Ī great question - but not one with a clear-cut answer! Most tax offices haven’t given specific guidance on gas fees or network fees, but many of them have given guidance on transaction fees in general and it'll all depend on the transaction.This includes all kinds of crypto assets like stablecoins, tokens, and NFTs. Capital Gains Tax: If you sell, swap, or spend crypto using MetaMask and make a gain as a result, this is usually subject to Capital Gains Tax.Crypto tax varies depending on where you live (so read our crypto tax guides for more info where you live), but generally, crypto is subject to Capital Gains Tax or Income Tax depending on the transaction: If you have capital gains or income from your MetaMask transactions, you'll likely need to pay tax on them. Your MetaMask transactions may be taxable. Do I need to pay tax on my MetaMask transactions?
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