3 Great Cryptocurrency Tax Resources
Disclaimer: I am not an attorney or accountant, so none of the information in this article should be considered legal or tax advice. This article is just meant to show you some cryptocurrency tax resources that may help with tracking. Always consult with a qualified professional in your area on these topics!
Taxes have become a hot topic in the cryptocurrency world now that the year is almost over. This is a broad question that will vary depending on where you live. However, no matter where you reside, keeping track of your trades will help immensely. Even if you file taxes for yourself, you will need to know your cost basis and gain/loss of each sale.
Luckily, there are a few cryptocurrency tax resources that help immensely with this. Each of the platforms below offer the ability to connect directly to wallets or exchange accounts for automatic imports. They also offer the ability to spit out a Form 8949 statement, TaxACT download, TurboTax download, and other various outputs. I will go over each one in short detail below, with full review posts coming later in the week.
CoinTracking is one of the leading platforms for helping you keep track of your cryptocurrency. They have a web platform and apps on the Google Play Store and Apple App Store. The mobile app is beautiful and has an extremely clean interface, as well as nice widgets that allow a portfolio overview at a glance.
CoinTracking has 3 tiers:
- Free - Allows tracking for up to 200 trades. It does not include automatic API imports or tax-reports.
- Pro – Allows up to 3,500 trades. Includes tax reporting and API importing from ~30 exchanges, such as Binance and KuCoin. You can also connect 5 wallets for automatic import of blockchain transactions.
- Unlimited – Allows unlimited trades. Includes tax reporting and API importing from ~30 exchanges. Daily backups of all trades as well as guaranteed access to all future updates. This version allows 50 wallets to be connected for automatic import of blockchain transactions. Includes XML and JSON exporting as well.
The free version is good if you are only buying on one exchange and mainly just going between fiat currency and cryptocurrency. Pro is a must if you are a somewhat regular trader and trade on multiple exchanges. Unlimited is for serious traders who trade over 3,500 times a year and are highly active. They also have reporting for gifts, income, lost/stolen, etc., which makes it a full fledged tracking application.
I would recommend signing up for the free account and then upgrading if needed. Please consider using this referral link, it will get you 10% off if you decide to upgrade to a Pro or Ultimate account!
BitcoinTaxes has been around for a while and offers a great system for tracking your cryptocurrencies. They have a web platform, but do not currently offer a mobile app. The interface is clean and simple. They also offer a list of certified tax accountants that have experience with cryptocurrencies, which is an excellent feature.
BitcoinTaxes has 2 tiers:
- Free – Allows up to 100 transactions. Includes tax reports. This version does not include the ability to view transactions from blockchains. You can generate an API key for third party applications though, such as for exchanges.
- Premium – Allows unlimited transactions. Includes tax reports. This version does include the ability to view transactions from blockchains. You can generate an API key for third party applications, such as for exchanges.
As with CoinTracking, I would recommend signing up for the free account and then upgrade if needed. The fact the free account allows for tax reports on up to 100 transactions makes it great for someone with minimal volume. Please consider using this referral link if you do!
Libra seems to be more focused towards businesses and accounting professionals, but it is still worth checking out. They have a web platform, but do not currently offer a mobile app. Probably the simplest interface of the platforms mentioned in this article, and I mean that in a good way. They also have a ‘hire a professional’ section, which can come in handy if you had some serious trading this year.
They offer 3 tiers:
- Individuals – This level is free, but it does cost $19 to generate tax reports for the year. You can run the reports unlimited times for 365 days following the unlock date.
- Business – This level is free to sign-up for, but $49/year will unlock helpful reporting features.
- Accounting professionals – This version costs $99/year and includes all the features found in LibraTax and Libra for Business under one application.
It should also be noted that even when connecting to Coinbase it did not pick up the ETH wallet, only the USD and BTC wallets. I would say this is an early version, but one to keep an eye on. Check Libra out here for more information.
Summary of Cryptocurrency Tax Resources
There are a lot of other applications for tracking your cryptocurrency portfolio, but these cater specifically to tracking for tax purposes. Governments know that a lot of money is not being reported, so it is better to get everything accounted for to avoid any potential trouble. Subscribe to the newsletter and check back soon to see reviews of CoinTracking, BitcoinTaxes, and Libra! Check out this article to get an overview of the flow of funds when going between cryptocurrency and fiat currency.