CryptoTaxCalculator is proud to support TaxScouts, an online tax preparation tool in the UK and Spain. They sort your Self Assessment tax return for £119, all in - and CryptoTaxCalculator users get 10% off too! It's fast, online and done by a certified accountant. Follow these steps to get your tax return sorted out.
Click here to access the TaxScouts website. You can then create an account to get started or log in if you already have an account.
You will be prompted to choose your reason for preparing a tax return. Select the "I earned capital gains" option as below.
You may have to review and update transactions where there is no market price available. This error typically occurs when you add a transaction into CryptoTaxCalculator, and we can't determine the market value of the cryptocurrency at the time of the transaction.
Some common scenarios where we may not be able to find the historical market pricing information include: coins that are not traded often; have low liquidity; newly created; are unlisted; or were ICO transactions. Due to the way we obtain our historical pricing information from data aggregators, in these situations, CryptoTaxCalculator assumes a zero dollar price. When this happens you'll get a warning against the transaction itself as seen below:
If you dispose of cryptocurrency, but don't have enough balance, this will raise the balance remaining warning message in the app. A negative balance remaining will trigger a "zero cost" sale. Basically, what this means is that we were unable to find out the cost basis for the cryptocurrency, so the proceeds is considered profit.
Example 1: No Buy Transaction
| Date | Trade | Currency | Price | Quantity | Balance | Cost Basis | Proceeds | Gain (Loss) | |------------|-------|----------|-------|----------|---------|------------|----------|-------------| | 6th August | Sell | BTC | 4,500 | 1 | -1 | 0 | 4,500 | 4,500 |
In example 1 the user has sold 1 BTC, but never entered the initial buy transaction in the app. We assume zero cost basis and th
At the time of writing gas price is 180 Wei and to do a trade on Uniswap cost around $100 in ETH. This is a significant amount for most users, and adding this to your cost basis is an important part in minimizing your taxes. But in most circumstances you will also need to consider the capital gains realised on the ETH you are spending for gas.
| Date | Trade | Currency | Price | Quantity | Gas (ETH) | ETH Price | |:--------------|:------|:---------|------:|---------:| ---------: | -------: | | 1st Jan 2017 | Buy | ETH | 30 | 2 | - | - | | 4th Oct 2020 | Buy | SUSHI | 200 | 1 | - | - | | 6th Feb 2020 | Sell | SUSHI | 1000 | 1 | 0.1 | 1000 | | 6th Feb 2020 | Buy | DAI
CryptoTaxCalculator has been around for almost three years. I first started this project back in 2018 after copping a $2k quote from an accountant to sort out my degen trading activity.
At the time most of the crypto tax platforms were built to facilitate the rather simple Bitcoin protocol, which was limited to mostly buying and selling on centralized exchanges. However I was a big fan of the Ethereum protocol, and had been trading on a few DEXs as well as participating in over 20 ICOs. Needless to say, getting my taxes sorted using the existing tools was a near impossible task. Instead I built a script to read from the Ethereum blockchain and automatically categorise transactions.
Fast forward to 2020 and the app had helped thousands of crypto enthusiasts with their crypto taxes. Alon
Calculating cryptocurrency in the UK is fairly difficult due to the unique rules around accounting for capital gains set out by the HMRC. To calculate your capital gains as an individual, the HMRC requires you to keep track of your average cost basis for the token on hand, aggregate your same-day transactions, and ignore any “wash sales”. This is to discourage people from trying to partake in tax loss harvesting to minimise their taxes below the capital gain tax free threshold. In this guide we discuss these rules in greater detail and how they apply to cryptocurrency.
It is important to recognise the different categories of transactions used in CryptoTaxCalculator as they each have different tax implications. CryptoTaxCalculator attempts to automatically map transactions back to categories that make sense from a traditional accounting perspective.
To better understand these different categories, this article will provide an overview of each transaction category and their tax implications:
TurboTax is a very popular tax reporting tool in the US and Canada. CryptoTaxCalculator supports both the Desktop and online version of the TurboTax app. Below are the instructions for reporting your cryptocurrency taxes using TurboTax.
Cryptocurrencies are taxed as property in the United States, not as a currency. This means that the same tax rules which apply to property transactions such as selling and barter trades also apply to cryptocurrencies such as Bitcoin and Ethereum. Transactions which incur capital gains tax must be reported on Form 8949. This includes not just transactions where you convert cryptocurrency back to USD, but also trading once cryptocurrency directly for another, and also when you pay for goods and services in crypto.
| Date | Trade | Currency | Price | Quantity | Balance | Cost Basis | Proceeds | Gain (Loss) | |:-----------|:------|:---------|------:|---------:|--------:|-----------:|---------:|------------:| | 1st Jan | Buy | BTC | 3,000 | 1 | 1
You only need to take one look on Reddit to see how much confusion there is around crypto taxes. To add to that confusion is the very particular tax scenarios in Canada. Similar to many countries, cryptocurrency taxes are taxed in Canada as a commodity. However the CRA has a different method to most countries when calculating overall capital gains, using the Adjusted Cost Basis (ACB) when calculating capital gains from selling cryptocurrency.
It is important to note that the ACB is not the same as an average cost basis, since you need to apply the superficial loss rules. In addition there are a number of transactions that can be classified as income, and need to be declared on your income tax return. In this guide we help you understand these different rules and provide you with some cla
CryptoTaxCalculator allows users to import trades from crypto exchanges that are not currently supported. For advanced trades where the fees are yet to be applied with the trading data, our "Advanced Template" may be used to upload data. For simple trades where the fees are already applied in the trade data, visit our Simple Manual CSV Guide
CryptoTaxCalculator allows users to import trades from crypto exchanges that are not currently supported. For simple trades where the fees have already been applied within the trading data, our "Simple Template" may be used to upload data. For more advanced trades, visit our Advanced Manual CSV Guide
We’ve tried to make CryptoTaxCalculator as easy to use as possible, that said with crypto being such a complex ecosystem we wanted to take the time to explain the best way to use CTC to ensure your results are accurate and quick.
If you have any questions or are struggling with the process please feel free to reach out to support.
Investing in cryptocurrency can be rewarding, but it is important to recognise that there are differences between crypto investing and other forms of investing that you may be more familiar with (e.g. Forex and Shares). The Australian Taxation Office (ATO) has applied existing legislation to cryptocurrency transactions which are not exactly intuitive. But given some guidelines, it is possible to understand crypto tax in Australia. Ultimately, different tax liabilities may arise depending on the type of transaction made, as well as the entity making the transaction (i.e. Business or Individual).
In this guide, we attempt to break down some of the different tax implications that may arise in the world of crypto, provide some foundational understanding of cryptocurrencies as a whole, and ans
Once again the ATO has decided to come down hard on cryptocurrency enthusiasts with a robo-debt style email warning letter being sent out to 350,000 Australians. In this article we discuss what this letter means and what you should do now.
When you look at recent years, you will soon find that there has been a steady increase when it comes to the overall use of virtual currencies. This includes Dogecoin, Litecoin, Ethereum and Bitcoin. Crypto currencies are used not only as payment methods, but also as investment opportunities. Virtual currencies have also created a legal vacuum, which is now full to the brim with regulations. A lot of them revolve around tax and the way that cryptocurrency taxes are paid.
In this post we discuss the link between Bitcoin, US interest rates, and China.
If you want to understand where bitcoin is heading from a macro perspective, you need to understand the USD price action. Not just because BTC/USD is the predominant ticker, but because of bitcoin's potential role as an inflationairy hedge against US central bankers.
At this point in time the USD is either going to go up, or go down. Obviously. But there is a good chance it is going to go in either direction a lot. Why? Because we are seeing both a topping formation in short and long term debt cycles, and at the same time seeing extreme geo-political uncertainty with a potential weaponization of the USD.
Ray Dalio is a big wig investor managing ~125B. He call
TLDR: Not really. If anything they should probably be taxed like forex trading.
The idea behind crypto currencies is that it's a non-government currency, not property. However the government in many countries view crypto currencies as property with associated capital gains implications. Essentially what happens is that if you save money in crypto, then want to buy goods (or other crypto) with that crypto, you are going to have to keep track of any gains, which can quickly become a nightmare.
In contrast, forex trading is also taxed, however profits are summed at the end of the year and any gains are just additional income added on top of whatever else you earned for the year. This limits the chance that you didn’t sell high and held through the tax year, only to have to pay sometimes 6
During the GFC it felt more relevant to consider an alternative digital currency. But after an epic 10 year bull run in equity markets these feelings aren’t exactly prominent in the public mind.
It is easy to feel comfortable in the first world, but how does it feel in the heart of Africa? I caught up with Omusawaba, a crypto enthusiast from Kenya, to get an inside look at the local state of crypto.
In Kenya bank accounts are redundant. The first world talks about the world’s unbanked population being a problem, but essentially Kenyans - even the very marginalized ones - do not need a bank account. What they need is a basic mobile phone that can function as a bank account thanks to M-Pesa.
In 2016 M-Pesa handled 6