If you're investing in Bitcoin or using crypto savings plans, you'll likely need to report your transactions for tax purposes. This guide explains how to prepare and use your Bitcoin transaction history with crypto tax software.

How tax tools access your data

All Bitcoin transactions are publicly recorded on the blockchain. This transparency allows most crypto tax tools (like Cointracking, Koinly, Blockpit, etc.) to automatically fetch your transaction history. You usually do this by providing your public Bitcoin addresses or an extended public key (such as an xpub, ypub, or zpub, depending on your account type) to the tool.

Always check with your chosen tax tool to confirm if they support direct import via public addresses or the specific type of extended public key your BitBox account uses.

We've partnered with Cointracking for seamless integration. Learn more about connecting your BitBox with Cointracking on our blog: How to use CoinTracking with the BitBox02 and keep track of your transactions 

Option 1: Using individual addresses

You can provide your individual Bitcoin addresses (e.g., those typically starting with 1..., 3..., or bc1q...) directly to your tax software.

• Keep in mind: This method only retrieves the transaction history for those specific addresses you provide, not necessarily the entire history of all addresses ever used by your wallet account.
• Each address is cryptographically derived from your wallet's recovery seed.

Option 2: Using an extended public key

A more comprehensive and often easier method is to use your account's extended public key.

• Formats: Common formats for these keys include xpub, ypub, and zpub. The BitBoxApp will display the appropriate key type for your specific Bitcoin account (e.g., xpub for legacy accounts, ypub for SegWit-compatible P2SH accounts, and zpub for native SegWit accounts).
• Benefit: An extended public key allows the tax tool to discover and read the history of all past and future public addresses associated with a specific Bitcoin account in your BitBox. This saves you from having to add addresses one by one, which is especially useful if you've received many transactions (e.g., from a regular investment plan).
• Your recovery seed is the master key for your wallet. From this seed, your BitBox derives your accounts. Each account has its own extended public key (in the appropriate xpub, ypub, or zpub format), which in turn generates and manages all the individual addresses for that account.
• Your BitBox can manage multiple Bitcoin accounts, each with its own unique extended public key.

Is sharing public keys or addresses safe?

Yes. Sharing your individual public Bitcoin addresses or an account's extended public key (e.g., xpub, ypub, zpub) with a tax tool is for read-only access. These public keys allow the tool to view your transaction history on the public blockchain but do not grant any ability to spend or move your Bitcoin. Your private keys, which control your funds, remain secure on your BitBox.

Privacy and CSV export

If you prefer not to link your addresses or extended public keys directly to a third-party service for privacy reasons, you can usually use a CSV (Comma Separated Values) file export.

• The BitBoxApp allows you to export your transaction history as a CSV file.
• Cointracking: You can often import the CSV file generated by the BitBoxApp directly.
• Other tools: Some tax tools might require the CSV data to be formatted in a specific way. You may need to adjust the exported file from the BitBoxApp or consult your tax tool's documentation for their specific CSV import requirements.

Always ensure you understand how your chosen tax tool handles your data.