While crypto enthusiasts wait for more favorable regulatory winds to blow, reporting your cryptocurrency taxes is a real hassle. Well, it is a hassle if you try doing it manually or with some outdated calculator. Luckily, this sector of crypto industry is growing strong by month and that is why we tested out and put up this review of one of the most popular cryptocurrency tax calculators – Cryptotrader.tax.
Once you pass $20K in transactions, Coinbase is required to report your transactions to the IRS. It seems likely tax authorities around the world will follow suit, forcing Coinbase and the other exchanges to do the same for any of their citizens. So we should all be prepared to get taxed.
So what can you expect to see in this Cryptotrader.tax review? Pretty much everything you need to make a call – buy a license or pass and search further for a better solution.
What is Cryptotrader.tax and what makes it a good bitcoin tax software?
In a nutshell, CryptoTrader.Tax is a cloud-based software that integrates with cryptocurrency exchanges to collect trading data and then uses that data to compile tax reports – all done automatically with couple of button clicks.
How does Cryptotrader.tax work?
First step is to collect your trading data by either importing it through API keys that you connect to Cryptotrader.tax or by downloading that data from the exchanges and manually uploading it to the tax platform. CryptoTrader.Tax integrates with all major exchanges so you probably won’t have any manual work to do, unless you traded on some small, obscure crypto exchange.
Since people acquire cryptocurrencies in a host of difference ways, you need to “explain” that to the software in the second step when you add your sources of cryptocurrency income. CryptoTrader.Tax can report your gains from mining, staking, gifts, airdrops, and forks.
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Third step is the final one – you simply check if everything got imported and calculated correctly and download your completed crypto tax report. For each tax year, the following documents are automatically created:
- Cryptocurrency Income Report
- Short & Long Term Sales Report
- IRS Form 8949
- Audit Trail Report
- End of Year Positions Report
- TurboTax Online Direct Import
Another top-notch feature that separates CryptoTrader.Tax from its competitors is its integration with the biggest tax tools – like TurboTax or TaxAct. This makes it easy to file reports yourself or send them off your your accountant to handle them for you.
What exchanges are supported by CryptoTrader.Tax?
Having an ability to integrate with major exchanges (the more, the merrier) is one of the major selling points and criteria in deciding if some crypto tax software is good or not.
CryptoTrader.Tax shines in this aspect with integration to almost every known exchange in crypto world – from the big ones like Coinbase, Binance, Kraken to the small ones like Mercatox, Lykke or Bitrue.
And if the exchange you used is not on the list of supported exchanges, you can still use Cryptotrader.tax by importing your trades from these crypto platforms using the Generic CSV Import template.
What countries are supported by Cryptotrader.Tax?
Right now, only US tax reports wit plans for expansion to other countries and continents.
CryptoTrader.Tax Review – Demo account
You can see CryptoTrader.Tax at work before shelling out money for a license. CryptoTrader.Tax allows you import your crypto trading data and income for free. You only have to buy the license when you want to view and download your full report.
The licenses you buy are for one tax year. There are four different pricing packages that range from $49 to $299 and they all include full features of the platform. The only differentiator is the number of transactions you can import into the tool.
You can buy your report with credit cards like Visa, MasterCard, or American Express. Plus, they offer a full money-back guarantee for all purchases, within 14 calendar days of your purchase.
Is CryptoTrader.Tax safe and secure?
The team behind the tool is very transparent with solid record track in IT and accounting history. The site itself uses SSL encryption on every single web page to ensure your data stays private.
Can I export my reports?
CryptoTrader.Tax lets you export and download all of your crypto trading history and tax reports, including the IRS Form 8949.
How does CryptoTrader.Tax manage stolen or lost coins?
There is a separate option in the software for such cases.
You need to navigate to the step 3 – Other transactions and then click on the Lost & Stolen Coins tab.
On this page, you add coins that you have lost or got robbed off. For each entry, you need to fill out all of the following fields:
- Coin – The ticker symbol of the coin lost
- Amount of Coin – Amount that was lost
- Type – Theft, Casualty, or Investment Loss (See more in this post)
- Description – Description of the lost coins (Will NOT impact the calculation)
- Timestamp (UTC format) – The date that the coin was lost
CryptoTrader Tax Review – Final verdict
Overall, this is a great tool – broad selection of exchanges, seamless integration with popular tax software for automatic filing of reports + tiered pricing to fit everyone’s taste make CryptoTrader Tax one of the, if not THE, best cryptocurrency tax calculators in 2020.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com