Question about Binance, Not Binance U.S

[Lalita202]

I am a U.S. resident with dual citizenship. This allows me to use Binance from my country of origin, not Binance U.S. I have been sending USDT from my Robinhood and Coinbase accounts to my Binance wallet. However, Binance is not allowed in the U.S., and all the transactions in my Binance account, both incoming and outgoing, are apparently subject to taxes, but in the country where the account is based. In this case, my Binance account was and is being used outside the U.S., and its KYC verification is tied to a country other than the U.S. The thing is, I have been sending USDT to that wallet, and vice versa, meaning from my Binance account, I send to Robinhood or Coinbase. All of these transactions are between my own accounts, and there are no third-party transfers involved. My question is: should I download the CSV file from Binance to upload it to some software that helps me prepare my crypto taxes? In other words, do I need to account for all the transactions that occurred on Binance when filing my U.S. taxes? Keep in mind, it's Binance, not Binance U.S.

[tagteam]

I'll page Champ @pk but I'm not sure he can help with this. 

If not, contact Support: What is the TurboTax phone number? (intuit.com)

[pk]

@Lalita202 , 

(a)  US taxes for  a US person ( citizen/GreenCard/ Resident for Tax Purposes )  is on world income ( including digital assets ( and/or income therefrom ).  US  , at least for tax purposes , does not recognize  dual citizenship to the extent  that it  does not interfere with tax treaty with that " other" country.

 (b)  I don't know  for sure  but I think  TurboTax does not deal with  .csv files  directly.  You would have to  use  a spreadsheet (or otherwise  ) to create the final figures as to earnings from your  trades  and/or earnings from the digital assets and holdings thereof.

(c) Note that you have convert all incomes to US$ using  conversion factors  from reputable sources ( US Treasury / IRS/ Yahoo Finance  etc. etc. ), generally using dollar of the day .  Just keep good records  of the  figures and  conversion factors you used.

 (d) if the "other" country also taxes the incomes  and there is a tax treaty in effect at the time along with "double" taxation clause, those foreign taxes  may be eligible for  Foreign Tax Credit / deduction.  There is ample material/discussions on this subject on this forum.

Is there more I can do for you ?

[Lalita202]

In my country of origin, I use the local currency to buy USDT. I then convert those USDT into USDC to send them to my Robinhood or Coinbase account. So, it’s not about making a profit, it’s simply a cryptocurrency purchase. When the USDC arrives in my Robinhood or Coinbase account, I sell them for USD, and from there, I transfer the funds to my bank account. For example, if I bought 1,000 USDT on Binance, that’s the same amount I receive in my bank account at the end of the process. How can I categorize these transactions?

[pk]

@Lalita202 , thank you for your response.  While I am not quite familiar with the terms you used  ( USDT --token /,  USDC - --coin etc. ), my understanding is that  you are   taking something in foreign currency ( or equivalent ) and  then  after a process ending up with US$ in your bank account.  If that is so , for purposes US taxes , it is not material as to the exact process  of conversion.  You have to  recognize  ( and pay taxes ) on ANY increase  in US$ value.   Because of the  variances in Digital asset values , it may  cause  some fluctuation in  foreign currency in and actual US$  in your account.   All you can do is to keep good records to prove your claims.  Note that while any gains realized is taxable  most losses are personal and not deductible.

Is there more I can do for you ?