Coinpanda integrates directly with LocalBitcoins to simplify your tax reporting. Learn how to calculate your taxes and generate all required tax documents for LocalBitcoins quickly.
If you have been trading, staking, or earning crypto on LocalBitcoins, you must also calculate your taxes for all transactions. Coinpanda makes calculating crypto tax for LocalBitcoins quick and easy by following these steps:
Create a free account and connect LocalBitcoins to Coinpanda safely and securely
Next, Coinpanda will import all your trades, deposits, withdrawals, and rewards from LocalBitcoins
Wait for Coinpanda to automatically calculate capital gains and income for your LocalBitcoins transactions
Download your LocalBitcoins tax report
File your LocalBitcoins taxes before the deadline
Supported transactions
To calculate your taxes accurately, you must import all transactions from LocalBitcoins to Coinpanda. Coinpanda supports the following transactions from LocalBitcoins today:
Tx Type
API import
CSV file upload
Deposits
Withdrawals
Trades
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How to connect LocalBitcoins with API
We are only requesting view permissions. This does not give us access to your private keys or the ability to move your funds.
Follow these steps to add your LocalBitcoins account to Coinpanda with API:
Under HMAC authentications you should see a new key with the name Coinpanda. Click on the name.
Copy the API Key and API Secret to Coinpanda
Only deposits and withdrawals from the past 30 days can be imported from API. You will need to upload a CSV file in addition if you have deposits/withdrawals older than that.
How to connect LocalBitcoins with CSV
Follow these steps to export your transactions from LocalBitcoins:
Click on ‘Collect personal data’ and download the ZIP file when ready
The ZIP file will include several different files and folders. The only two files you should save are:
contacts.csv (buy and sell history)
transaction_history.csv (deposits and withdrawals)
Upload the two CSV files to Coinpanda
How are LocalBitcoins transactions taxed?
The exact tax implications on LocalBitcoins transactions depend on which country you live in and the type of transactions you have made. In general, you must pay either capital gains tax or income tax on your cryptocurrency transactions on LocalBitcoins.
Capital gains tax: Whenever you sell a cryptocurrency for more than you purchased it for, you generate a capital gain. On the other hand, if you sell the cryptocurrency for less than you paid initially, you have a capital loss, which can offset other gains in most cases.
Income tax: Earned cryptocurrency on LocalBitcoins, such as staking, interest, bonuses, and referral rewards, is typically seen as taxable income from a tax perspective and must be reported in your tax return.
To learn more about how LocalBitcoins transactions are taxed in your country, we recommend reading our in-depth guides to cryptocurrency taxes.
How do I file my LocalBitcoins taxes?
First, you must calculate capital gains and income from all taxable transactions on LocalBitcoins. When you have this information ready, you can report capital gains and income together with other forms of income such as employment and dividends in your annual tax return.
To calculate your capital gains, you must first export a complete history of all transactions made on LocalBitcoins. Once you have this data, you can calculate your capital gains or losses by determining the price at which you bought the cryptocurrency (your cost basis) and the price at which you sold it (your proceeds). Luckily, Coinpanda can help you with this and generate ready-to-file tax forms quickly and easily.
After downloading your LocalBitcoins tax statements from Coinpanda, the last step is to report the capital gains and income on your tax return before the deadline. Most countries allow you to self-declare taxes online in 2023, but you can also get help from a professional tax accountant to file taxes for you.
Calculate your LocalBitcoins taxes
Sign up free today to calculate your LocalBitcoins taxes
How do I troubleshoot the imported LocalBitcoins transactions to Coinpanda?
While we strive every day to ensure the highest possible accuracy for importing transactions from LocalBitcoins to Coinpanda, it can happen that either not all transactions are imported or that some data is imported incorrectly. Some reasons for this can be:
Changes in the LocalBitcoins API
Updated CSV file format
LocalBitcoins does not provide a complete record of all transactions
To get the best help from Coinpanda support, you must first identify which transactions are missing or incorrectly imported. To do this, we recommend comparing your transaction history on LocalBitcoins with the transactions imported into your Coinpanda account. See also our help article with an overview of known exchange API limitations.
The quickest way to get help from our dedicated support team is to send a message in the Live Chat.
No, LocalBitcoins does not provide complete and ready-to-file tax documents. This is because LocalBitcoins does not have knowledge of your transactions on other exchanges, platforms, or from your self-custody wallets.
How do I get LocalBitcoins tax documents?
The easiest way to get tax documents and reports is to connect your LocalBitcoins account with Coinpanda which will automatically import your transactions. After that, you can download complete tax reports for LocalBitcoins.
Does LocalBitcoins provide financial or end-of-year statements?
No, LocalBitcoins does not provide a complete financial or end-of-year statement for your crypto transactions. However, you can get this using a crypto tax calculator.
Do I have to pay taxes on LocalBitcoins?
Yes, all transactions on LocalBitcoins involving the disposal of a crypto asset are in most cases taxable. You must also pay income tax on earned crypto such as staking, interest, or referral rewards.
Is transferring to LocalBitcoins taxable?
No, transferring cryptocurrency to LocalBitcoins is not taxed as long as you transfer between your personal wallets or exchange accounts.
How do I avoid paying taxes on LocalBitcoins?
It is impossible to avoid paying taxes completely on LocalBitcoins legally if you live in a country that taxes cryptocurrency. However, there are several ways you can reduce your taxes, such as tax loss harvesting.
Can LocalBitcoins calculate my taxes?
LocalBitcoins cannot calculate your taxes since it does not have knowledge of your transactions made on other exchanges or platforms. However, if you have only interacted with crypto on LocalBitcoins your entire life, it could technically do so.
Is LocalBitcoins safe?
LocalBitcoins is generally considered to be a safe exchange. Although LocalBitcoins follows industry best practices for safety and to prevent malicious attacks, there is always a risk associated with keeping your crypto on centralized third-party exchanges including LocalBitcoins.
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