Importing Bitcoin transactions accurately is crucial for tax reporting. This guide covers how to use extended public keys (xPub, yPub, zPub) for UTXO-based wallets like Bitcoin, Litecoin, and Dogecoin to streamline the process.
Why Use an xPub Key?
Crypto Tax Calculator (CTC) supports importing data via:
- Public addresses (manual entry)
- Extended public keys (xPub keys) (recommended for completeness).
An xPub key ensures all wallet addresses and transactions are imported, avoiding gaps in your tax records.
What Is an xPub Key?
Hierarchical Deterministic (HD) wallets—used by most Bitcoin wallets—generate multiple addresses from a single seed. The xPub key:
- Allows CTC to access all derived addresses.
- Enhances security by avoiding private key exposure.
- Starts with
xpub...(e.g.,xpub6A2B...).
How to Find Your xPub Key
Steps vary by wallet. Here’s how to retrieve it from Ledger Live:
- Open Ledger Live → Click Accounts → Select your Bitcoin account.
- Click the wrench icon (top-right) → Choose Edit Account.
- Select Advanced → Copy your xPub key.
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Troubleshooting xPub Imports
Issue: No transactions imported after entering xPub.
Solution: Convert your xPub to yPub/zPub using tools like the Bitcoin Extended Public Key Converter.
FAQs
Q: Where’s the xPub key for non-Ledger wallets?
Search "xPub [wallet name]" (e.g., "Trezor xPub key") for wallet-specific guides.
Q: My wallet doesn’t provide an xPub key. What now?
Manually import all public addresses linked to your wallet into CTC.
Q: How do I ensure 100% transaction coverage?
- Use xPub/yPub/zPub keys.
- For manual imports, verify every address is included.
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Next Steps
- Import transactions via xPub or addresses.
- Review cost basis in CTC for accuracy.
- Export tax reports (e.g., IRS Form 8949).
For further help, contact CTC’s support via in-app chat or email.
This guide ensures compliance with tax regulations while simplifying crypto portfolio management. Always cross-check wallet documentation for updates.
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