If you have bought/sold crypto currencies across various exchanges , you would realize by this time it’s incredibly hard to keep the books straight.
Here is typical trader cycle :
At the end of the day common questions you would end up is
Disclaimer : I am not an accountant and the opinions expressed in the article may contain errors. Please consult with a CPA before deciding how to handle your cryptocurrency taxes.
Few key things to consider before calculating gain/loss
You pretty much have to keep the history of all transaction and compile all withdrawals/deposit across exchanges to really calculate the gain loss for the tax year.
Overall the gain loss calculation process is very cumbersome and there are few websites which can help you calculate gain loss e.g : bitcoin.tax, cointracker.io etc. There plans starts from $29.99 to calculate gain loss info, they also support multiple exchanges probably 10+ exchanges and have heard from my crypto buddies that support seems to be an issue when we have questions.
I came across this site https://bear.tax which is out recently but it only support major (Gemini,Coinbase,GDAX,Binance,Poloneix,Binance,Bittex) exchanges , but the sweet part is plans starts from $0.99. I was very pleased with the service and support I got from them.
If you would like to try them, You can use the coupon code “BEARCLAW” which offers 20% discount on the plan for the first 100 members.
I thought I would share this information to my readers. If you like the read give me a clap.
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