With the rise of Bitcoin as a legitimate means of payment within the past year, it is now becoming a bit of a hassle to see how much tax is involved in monetary transactions involving alt currencies such as BTC, ETH, LTC etc.
This is where Bitcoin Taxes comes in, it is an online service that allows crypto owners to easily “import and calculate their capital gains” that are procured via the use of cryptocurrency payment processors. In addition to this, it also allows for tax calculations to be made on any profits that we might have obtained via means of mining and staking.
More About Bitcoin.Tax
Bitcoin Taxes currently offers its customers with two separate packages to help them with their filing needs. They include:
- Tax Professional
- Tax Firm
Both of the aforementioned plans have been designed to allow users to perform the necessary tax calculations and then download the appropriate tax information that will be required during the filing process. In addition to this, there are also other key features that the platform offers, including:
- Unlimited transactions
- Usability by any number of people
- Calculation of taxes for every year since the advent and release of Bitcoin (i.e. 2009).
How Does the System Work?
To start things of off, Bitcoin.Tax users can import all of the details that pertain to their crypto assets that have been bought from various online exchanges. However, it should be noted that, these transactions should have been performed at one of the many Online Exchanges that are supported by Bitcoin Taxes. Once this has been done, users then have an additional option to “add any spending or donations that they might have made from their digital wallets”.
Other key stats that need to be mentioned for a fair tax assessment include
- Mined coins
- Crypto based income one has earned
After this, the platform will automatically provide customers with pertinent data such as:
- Comparison of various methodologies, including FIFO, LIFO, and average costing.
- Detailed reports that include transaction costs, sale proceeds and gains.
- Income Report with all the calculated mined values.
- A donation report that factors in crypto information pertaining to gifts and tips.
Once the report has been prepared, it is readily importable on a variety of tax softwares including TurboTax® and TaxACT®. They can then easily be attached as a statement on our tax return file or printed as a separate pdf.
Key Features to Consider
As mentioned earlier, this platform is able to seamlessly import trade histories form a wide array of popular online exchanges. Some of them include Coinbase, Gemini, Circle, Bitstamp, BTC-e, Bitfinex, Kraken, CSV. To check out a list of all supported exchanges, users can visit the official company website (www.bitcoin.tax)
(ii) Easy Review Capabilities:
Bitcoin Taxes can be easily used for the calculation of individual taxes by monitoring defined addresses.
Customers have an option to import spending and income from a wide variety of sources including Core Wallets, Blockchain.Info, BitPay, CEX.IO, or CSV.
(iv) Currency Support:
This platform supports nearly all of the world's major fiat currencies including USD, GBP, EUR, CAD, AUD, SEK, NOK, BRL, SGD, CNY, JPY, CHF, HKD, RUB, ILS, KRW. In addition to this, it also supports alt coins such as Bitcoin, Bitcoin Cash, Ethereum.
(v) Professional Help:
For complex and complicated returns, customers have an option to hire professional tax consultants who can do all of the filing work on our behalf. There are many packages that are listed on the official company website.
How Do I Get On-Board?
To make use of this service, all one has to do is simply click on the “sign up” link on the top right side of the home screen. There are two separate plans that one can avail of including:
- Individual: starting from $29.99 per year
- Trader: starting from $99.95 per year
Both of these packages come with certain features that might not be available with the other. Additionally, signups can also be done via the use of our Google+ profile.
For any further queries or details regarding Bitcoin Taxes, customers can get in touch with customer representatives via their official social media profiles (namely twitter and facebook).