CryptoTrader.Tax: Easy Way To Calculate And Automate Bitcoin Taxes?
What Is CryptoTrader.Tax?
CryptoTrader.Tax is a cryptocurrency tool that helps in calculating gains, importing trade, simplifying preparation, and reporting of taxes. Initially, it was nearly impossible for high-level crypto traders to calculate their taxable trade incomes since it would take a lot of time especially if done manually.
CryptoTrader.Tax seeks to eliminate this crypto tax problem through the crypto taxation services it provides.
How CryptoTrader.Tax Calculate And Automate Bitcoin Taxes Works
Traders are required to create an account to begin using the platform. Once the account creation process is completed, traders will have access to the free account, which is also the default account.
The account is compatible with all the crypto assets in the market, includes 25 trades per report, and supports the FIFO Calculation mode as well as the manual trade imports.
Apart from the free account issued to traders after creation of an account, there are other different accounts that the traders can choose from, which include the Crypto Trader and High Volume Trader premium accounts. The accounts are equipped with 10,000 trades per report, unlimited reports, and compatibility with all the crypto assets. Both the accounts have automatic exchange imports combined with multiple calculation modes.
To begin the calculation of their gains and the tax report, traders are required to add their cryptocurrency income generated throughout a particular year. The trader then imports their trade using the automatic import tool integrated on the platform or through the uploading them by CSV. Finally, they can download the IRS Forms by simply selecting a tax season.
Eliminates Overpayment Of Taxes
CryptoTrader.Tax uses the First-In-First-Out method to calculate crypto tax liability. The technique is the same one used by CPAs which is a guarantee that the taxes paid by the crypto traders is the right amount while at the same time minimizing their tax liability.
Simplified Exporting Of Tax Documents
The platform simplifies exporting of tax documents during filing of taxes, as they are only required to download their IRS form and file taxes themselves, send it to their CPA, or even import it to their preferred tax software.
CryptoTrader.Tax will then generate an IRS Form 8949, their Cryptocurrency Income, and an Audit Packet.
CryptoTrader.Tax records all the calculations used for the trader’s net costs basis and proceeds. After which it generates a detailed report that includes an income report, short term and long term sales report, and closing position report.
The platform implements a SSL encryption, which ensures that the user’s data remain private and inaccessible to unauthorized third parties.
Cryptotrader’s website design is intuitive and easy to understand. Therefore, technical expertise is not required to use the platform.
CryptoTrader.Tax Supports Various Exchange Platforms
CryptoTrader.Tax supports multiple exchange platforms such as Binance, Bittrex, Bitfinex, Gdax, Gemini, Kraken, Coinbase, and Poloniex. This feature makes it easier for users to export all their exchange trading history, which subsequently enables the users transfer files from one website to the other.
The platform has an affiliate program through which users could earn income by referring other users to CryptoTrader.Tax. For every referral that purchases a tax report plan, the user will receive a $10.