Wij built CoinTracker out of our own frustration keeping track of our crypto assets. Our users love CoinTracker for many different reasons, but some of the top ones include the fact that CoinTracker:
- Automatically & securely syncs all of your cryptocurrency balances and transactions across major exchanges & local wallets
- Comes with superb customer service (wij take your terugkoppeling very earnestly)
- Is super effortless to use
- Helps you figure out your crypto taxes
- Is under active development — so it’s rapidly getting better and better
Give CoinTracker a attempt!
How does syncing work?
The Coinbase integration is done through Coinbase’s OAuth2 flow (Coinbase Connect). Our Coinbase integration requests read-only access to your Coinbase gegevens.
All other exchanges are integrated by creating API keys on the exchange accounts and providing them to CoinTracker. Whenever possible, wij ask that you provide only ‘View’ permissions to thesis API keys.
How frequently do you update cryptocurrency prices?
Wij update pricing numerous times vanaf hour and are working on further improving this.
How frequently do you synchronize my balances and transaction?
Wij update balances and transactions from your wallets and exchanges numerous times vanaf day and are working on further improving this. You can always force a wallet refresh using the zippy next to the corresponding exchange on the wallets pagina.
Where do you get your pricing gegevens?
Wij receive our pricing gegevens from numerous sources, including CoinMarketCap and CryptoCompare.
Why is there a discrepancy inbetween your listed price for Bitcoin and the price on my exchange?
For better or worse, there are actually fairly large differences te the price of Bitcoin across exchanges, during volatile times it can be more than $1,000. Part of the reason for this is that there are different levels of liquidity and risk associated with different exchanges, leading to different amounts of request and therefore pricing on those exchanges.
For plainness wij need to display a single value for pricing, so wij attempt to pick a reasonable value taking into account the price across many exchanges. That said, wij are also working on improving this number by personalizing the value to the exchanges that you use.
How can I track numerous Coinbase accounts on one CoinTracker account?
The Coinbase OAuth2 integration works based on the Coinbase account that you are signed into ter the same browser spil where you are viewing CoinTracker. Te order to add extra Coinbase accounts to CoinTracker, simply go to coinbase.com te the same browser and loom out. Then you’ll be able to loom into whatever extra Coinbase account you want through the integration flow on CoinTracker.
Do you have native mobile apps?
Not yet. Wij are presently only on the web (albeit wij do have a progressive web app for Android). However CoinTracker is mostly mobile-optimized so you can use it ter your phone’s browser. Wij project to launch iOS and Android native apps te the near future.
Can you add XYZ coin?
Wij presently support overheen Two,000 different crypto coins and tokens and wij are adding more every day! That said, wij don’t have gegevens for every single coin. Wij generally automatically pick up coins spil soon spil they are listed on a major exchange. If you see a coin missing a price that is listed on a major exchange, please let us know at [email protected]
Why haven’t you added XYZ feature?
Either because wij haven’t gotten to it yet or because wij don’t know you want it. Email us at [email protected]!
Privacy & Security
Are you a secure toneel?
Security is a top priority for us. Please see the security measures wij waterput te place to protect your security and privacy.
Is this a scam? Are you going to steal my crypto?
No. CoinTracker does not have access to your private keys strafgevangenis the capability to withdraw your crypto. See more about our security here.
Do you sell my crypto gegevens?
How do I delete my account?
You can delete your account and all your account gegevens at any time from the settings pagina.
Is this free?
CoinTracker’s portfolio tracker service is free and wij project to maintain this service for free. Wij charge for our tax reports.
How do you make money?
Wij suggest paid services to help you figure out your crypto taxes and project on introducing a paid subscription service for premium tracking features te the future.
What is the difference inbetween televisiekanaal fiat invested and cost fundament?
Waterput simply, nipt fiat invested is how much fiat money you waterput into your current crypto holdings. Formally, netwerken fiat invested is the total amount of fiat currency (e.g. USD, EUR, JPY, etc.) invested into crypto assets minus the total amount of fiat currency received from your crypto sales.
Note that this number can be zero if all your crypto is a bounty, if you have never bought any crypto, if you are a merchant who only gets crypto spil a form of payment (but never pays for it), or if you sell your crypto for the same amount that you paid for it with fiat currency. Netwerken fiat invested can also be negative, for example, if you sell your crypto for more than it cost to buy it ter the very first place.
Cost onderstel is similar to televisiekanaal fiat invested, but with some key differences. Formally, cost poot is the total fair market value of your presently held crypto assets at the time you acquired them. This value is used to determine the capital gains tax when you sell your crypto assets.
The differences inbetween cost ondergrond and netwerken fiat invested occur when the value of your crypto holdings switches, but not due to a switch te the amount of fiat used to acquire those holdings. For example, if someone gifts you bitcoin and it appreciates ter value, then you take on the donor’s cost poot at the time of the original purchase of that coin), however your televisiekanaal fiat invested is unchanged. Also if you trade a bitcoin for an ether, then your cost onderstel will adjust to incorporate the sale of the bitcoin and the purchase of an ether at fair market value, whereas your netwerken fiat invested is still unchanged. Similarly if you get a forked asset (e.g. Bitcoin Specie from your Bitcoin holdings), then your cost fundament will increase accordingly, however your nipt fiat investment is unchanged.
On the other palm if you buy $1,000 worth of bitcoin, your cost poot and nipt fiat invested both increase by $1,000. The same applies te switch sides if you sell $1,000 of bitcoin (both cost onderstel and netwerken fiat invested decrease by $1,000). Transfers within a user’s wallet don’t affect netwerken fiat invested strafgevangenis cost voet. Note that while netwerken fiat invested can be negative, cost ondergrond is always a non-negative number.
Here are some examples to make it clearer:
How is cost fundament calculated?
Te order to calculate cost onderstel, wij look at the fair market value of the amount being paid (left side of transaction) at the uur of the transaction. So for example, if you are paying $1,000 USD for 1 BTC, then the cost poot is $1,000. If you are paying 1 BTC for Ten ETH, then your cost onderstel is the fair market value of 1 BTC at that time. For fiat currency, it’s effortless — the value of the fiat is the cost voet. If it’s a crypto payment, then wij look up the fair market value of that coin at that time from different sources (e.g. exchange, cryptocompare, etc.).
All calculations default to a first-in first-out (FIFO) monster. Wij also support extra methods of specific identification (such spil highest-in-first out [HIFO] and last-in-first-out [LIFO] from the settings).
My cost fundament/ROI/capital gains are totally wrong. Why?
Please make sure you have considered the following:
- Wij cannot correctly calculate cost onderstel and ROI without knowing the utter history of how you got the coins you have today, and te which wallets they are located. Please add your utter crypto trade history (e.g., fiat > crypto > crypto > fiat) across all your trades, exchanges, and wallets. You can do this by adding all the exchanges you used to trade, syncing cold/local/hardware wallets, and adding manual transactions.
- If you leave outgoing transfers without adding the receiving wallet, then CoinTracker will treat them spil a taxable sale to be conservative ter capital gains reporting. If thesis are te fact non-taxable transfers instead of taxable sale events, you simply need to add the receiving wallet/exchange and wij will automatically match up the transaction (or alternatively you can mark the transaction spil a transfer using the zippy next to the transaction from the Transactions pagina)
- If you trade on Coinbase and GDAX please make sure to connect both of them to CoinTracker (Coinbase tracks trade history separately from GDAX).
- If you use Bittrex: unluckily their API makes only supports a rolling 30 day window for trade history. Please make sure to bulk upload your transaction history via CSV from the zippy next to the exchange on the wallets pagina (you only need to do this once).
- If you use Gemini or Liqui: unluckily their APIs do not support withdrawals and deposits. Please by hand add deposit and withdrawal transactions for thesis exchanges. To do so, navigate to the corresponding exchange from the from the wallets pagina and using the zippy next to the wallet, select “Add Manual Transaction”. Additionally unluckily Liqui’s API has stopped reporting history before 2018 so please make sure to add those transactions by hand.
- Wij don’t yet support capital gains on margin trading — if this applies to you please let us know so wij can prioritize thesis features.
- Pending transactions are not included te the current market value (they are automatically added once the pending trade is ended).
- If an exchange you use is missing, please send us an email at [email protected] so wij can add it. Te the meantime please add the transactions by hand.
If you have done all of the above and there is still a problem, send us an email at [email protected]
Why are transactions to my local wallets being marked spil taxable “send” events instead of “transfers”?
CoinTracker uses the information you tell it about to track your transaction history. If you add an exchange that has outgoing BTC withdrawals to your local BTC wallet, but don’t add your BTC wallet, then CoinTracker does not know if the wallet is yours, a friend’s, or a merchant’s. Therefore, to be conservative, the default assumption is that a non-tracked wallet is not yours and therefore a taxable send event.
If that is incorrect and the transaction should instead be a transfer to a local wallet that you control, then the fix is to simply add your local wallet to CoinTracker (wij presently support BTC, ETH [inclduing ERC20 tokens], LTC, and DOGE local wallets). If you run into any issues, please see the cold wallet FAQ below.
If the transfer is for a wallet wij do not yet support, then you can mark the transaction spil a transfer using the zippy next to the transaction from the transactions pagina. Behind the scenes, this simply adds the same amount of coin which wasgoed Sent/Received spil Received/Sent. You can undo the operation by by hand editing the transaction back to its original state.
How do I account for crypto stored ter my local/cold/hardware wallet?
The easiest way to track this is by adding your wallet’s public address. Wij support BTC, ETH (including ERC20 tokens), LTC, and DOGE today. If you have other coins te cold wallets, then let us know ([email protected]) which ones so wij can prioritize adding local wallet support for those blockchains. Te the brief term, you can mark any outgoing/incoming transaction from an exchange to a non-tracked cold/local wallet spil a transfer using the zippy next to the transaction from the transactions pagina.
Wij are also working on adding xpub support for popular wallets like Ledger Nano S, Trezor, Jaxx, Uittocht, etc. so that you can simply come in one address vanaf wallet and have all transactions sync automatically. If you are having any problems with hardware wallet addresses, please see here.
Why is my local/hardware wallet address demonstrating zero balance?
Please ensure that your wallet address is actually onberispelijk and actually has a non-zero balance (you can verify using a Bitcoin, Ethereum, Litecoin, or Dogecoin block explorer. Most good wallets generate a fresh address for each receive transaction to protect your privacy & security, so instead of adding your latest receive address (which has zero balance), you’ll want to add the historically used addresses that actually have your balance. Here is how to get your address history for common wallets:
- Ledger Nano S
- BTC & LTC: get utter list of addresses from your list of transactions ter the Ledger Bitcoin Wallet (not the latest, un-used receive address)
- ETH: by default there is only one ETH address (the receive address), however if you used numerous ETH addresses you can see them on MyEtherWallet
Wij are also working on adding extended public key (xpub) support so that you can come in one address vanaf coin vanaf wallet. If you have verified all of this information and are still observing issues, please email us at [email protected]
Why does my market value not match from the instrumentenbord and chart?
The market value is calculated based on your current crypto holdings tracked by CoinTracker. The chart’s market value is computed based on your historical transaction history. If your accomplish trading history (e.g. all fiat > crypto > crypto > fiat transactions across all exchanges and wallets) is not tracked by CoinTracker, then thesis will not be accurate and not match. Ter order to fix this, please go after the instructions from above.
Why can’t I just edit my own cost fundament?
Wij are working on adding this feature soon.
How do I get rich quick off of crypto?
Wij recommend avoiding this mentality when investing. Have folks made a lotsbestemming of money quickly with crypto assets? Yes. However, many folks have also lost a loterijlot of money, you just don’t hear about those stories ter the media.
Make sure to always understand anything you are investing te before doing so, or at least make sure you have someone you trust watching your back.
Which coins should I buy?
CoinTracker does not provide investment advice.
That said, there are many factors to consider when making a crypto investment, such spil purpose or utility of a coin, reputation of the team, whitepaper, code (how much active development is going on), which exchanges are listing the coin, is it a coin with its own blockchain or a token on an existing blockchain (e.g., ERC20 tokens on Ethereum), etc.
Te general, avoid get rich quick schemes and don’t fall for pressure to invest NOW. There will always be more opportunities for investment, and it’s better to miss an chance that you don’t understand or aren’t comfy with than leap onto a bad/scam investment.
CoinTracker is also programma on piloting a service to help you setup your own crypto basket. Feel free to check out more details here.
Disclaimer: CoinTracker is provided for informational purposes only. This service is not intended to substitute for tax, audit, accounting, investment, financial, strafgevangenis legal advice. For financial, tax, or legal advice please consultatie your own professional. The information on CoinTracker is subject to switch without notice. All information is provided “spil is.” CoinTracker disclaims any responsibility for the accuracy or adequacy of any positions taken by you te your tax comes back. Please see our utter disclaimer.
How are cryptocurrencies taxed?
Tax laws vary around the world. Please familiarize yourself with the tax rules that apply to you based on your country/jurisdiction.
Most countries consider cryptocurrencies to be capital assets. Therefore if the asset appreciates ter value and you sell/trade/use it for profit, the gains are taxed like capital gains. If the asset depreciates ter value and you sell/trade/use it at a loss, you may be able to deduct the losses against other capital gains to reduce your taxes.
The amount of tax depends on how much capital build up/loss there has bot on the asset, how long you have held the asset, and the specific regulations te your country/jurisdiction. Because each taxable event may create a capital build up, you need to know the date, cost voet, sale value, and any fees associated with each transaction.
Generally speaking, thesis are considered taxable events:
- Selling cryptocurrency for fiat currency (i.e. USD, EUR, JPY, etc.)
- Trading cryptocurrency for other cryptocurrency
- Using cryptocurrency to buy a good or service
- Receiving cryptocurrency spil a result of a fork or from mining
On the other arm, the following are generally not considered taxable events:
- Buying cryptocurrency with fiat currency
- Donating cryptocurrency to a tax-exempt organization
- Gifting cryptocurrency to anyone (if the bounty is adequately large it may trigger a bounty tax)
- Transferring cryptocurrency from one wallet that you own to another wallet that you own
How does the United States Internal Revenue Service (IRS) treat cryptocurrency?
Te 2014, the IRS released guidance on virtual currencies (i.e. cryptocurrencies). Some highlights include:
- Cryptocurrencies are treated spil individual property (not currency) and are therefore taxed spil capital assets
- Capital gains from selling cryptocurrency for fiat currency (e.g. USD) or using cryptocurrency to purchase goods or services are subject to capital gains tax
- Cryptocurrencies that are obtained from mining are taxable spil income at their fair market value at the time they are received
- Mining equipment can be deducted spil a legitimate business expense
Ter what jurisdiction are US citizens taxed on cryptocurrency?
All US citizens and US residents are subject to a worldwide income tax. Any currency — fiat or crypto — earned anywhere ter the world is taxable. For example buying a product/service using cryptocurrency that has appreciated ter value is taxable, spil is realizing a capital build up on a foreign crypto-exchange.
Ter addition, states have their own extra tax regulations around cryptocurrency which may be te addition to whatever regulations apply.
Do I need to pay tax on my cryptocurrency?
If you traded, sold, or used any of your cryptocurrency to purchase something, then you may need to pay tax on thesis assets. If you were gifted or given cryptocurrency spil payment, salary, or spil a bounty/donation, then this income should be reported just like any other income you receive.
If you are just buying cryptocurrency with your own money and storing it (no selling/trading/using it), then you likely do not need to pay tax on it. #HODL
What if I only traded crypto:crypto within an exchange without cashing out to fiat?
That is still a taxable event and treated the same spil if you sold your cryptocurrency for fiat and then bought fresh cryptocurrency with that fiat. The taxable event is selling cryptocurrency (whether for cryptocurrency or fiat), not whether you contant out of an exchange with fiat currency.
If I buy something with crypto is that a taxable event?
Very likely, but it depends on the rules of your country/jurisdiction. If it is considered a taxable event ter your country, then you would be paying tax on the capital gains (the amount that the asset appreciated while you held it).
For example let’s say you bought one bitcoin for $1,000 and then you bought a car with that bitcoin. At the time of the purchase, the bitcoin wasgoed worth $20,000. The $Nineteen,000 of capital gains are taxable.
How are cryptocurrencies taxed if I earn them rather than buy them?
Most countries consider earning cryptocurrencies spil a barter transaction (payment-in-kind). This means that you would be taxed spil tho’ you had earned an omschrijving amount of fiat currency spil income.
For example, if you earned one bitcoin, valued at $1,000, then you would be taxed spil tho’ you earned $1,000 of income.
What if I receive or give cryptocurrency spil a peak or bounty?
Bounty and tipping rules vary from country to country. If required to report spil taxable income, you would simply convert the cryptocurrency to their fair market value at the time they are received. Generally providing cryptocurrency spil a bounty is a non-taxable event for the giver, unless it meets the threshold for a bounty tax. For the receiver, ter addition to any taxable income that may be relevant, you will also take on the cost poot of the cryptocurrency from the donor.
There is however an significant exception if the donor’s poot wasgoed higher than the market value of the bitcoin at the time of the bounty (i.e. there wasgoed a capital loss on the coins at the time of the transfer). Ter this case, the receiver should recalculate their capital build up/loss using their onderstel spil the market value of the bitcoins on the date of the bounty. If there is still a loss from the donor’s original poot, then the receiver can proceed using the gift-date market value spil the poot. If however there is now a capital build up, US tax law says to overlook the build up and report nothing (e.g. there is no capital gains event!). Note: the receiver always takes on the original donor’s original purchase date for the coin ter brief/long-term capital gains calculations.
This is very confusing, so here’s an example to demonstrate. Let’s say that Rashmi buys one bitcoin for $1,000. Two years straks she gives it to Jon when the price of bitcoin is $500. Ten days straks Jon sells the bitcoin. Consider the following scripts:
- Jon sells the bitcoin for $1,100. He takes on Rashmi’s original ondergrond of $1,000, and has a long term capital build up of $100.
- Jon sells the bitcoin for $400. Since there is a capital loss using Rashmi’s ondergrond, he can’t use that voet. Instead, he takes on the onderstel of the fair market value of the bitcoin at the time of the transfer ($500), leaving a long term capital loss of $100.
- Jon sells the bitcoin for $900. Again, since there is a capital loss using Rashmi’s voet, he can’t use that voet. He takes on the onderstel of the fair market value of the bitcoin at the time of the transfer ($500), however now this would yield a capital build up of $400, so instead you disregard the sale and nothing should be reported.
This is a counter-intuitive tax screenplay, so it may help to think of this treatment spil a way to prevent folks from sharing their capital losses with friends. Regardless, make sure to keep records any time you receive a crypto-gift, of the donor’s original fundament, acquisition date (which you always inherit), spil well spil the fair market value of the coin on the date of the bounty.
What happens if I receive a coin from a fork?
There is some debate about how to treat forked coins (e.g. spil a stock dividend, etc.) spil there is no authoritative guidance from the IRS. That said, the most conservative and sensible treatment seems to be following well-established “treasure trove” doctrine where the IRS has long held that “found” money is a taxable event.
So for example if you own one bitcoin (BTC) and it forks into one bitcoin (BTC) and one bitcoin specie (BCH), then the one BCH you receive needs to be reported spil taxable ordinary income (not a capital build up). This is true whether or not you sell your BCH. Ter addition, the amount you use for your reported income becomes your onderstel for the fresh BCH, and what you will use to calculate capital gains when you sell your BCH.
There is also some debate spil to the precies method for calculating the fair market value for the BCH. For example there could be a time delay inbetween when the fork occurs and when you build up control of the forked coin depending on whether you are using a local wallet or an exchange wallet. One plain, straightforward treatment is taking the price at the time the forked coin (BCH) becomes available to you ter your wallet (whether on an exchange or a local wallet) spil the price for voet and taxable income. Note that some argue that the cost onderstel should be zero for forked coins and all upside should be considered capital gains, tho’ this is a more aggressive treatment. If you are hesitant what to to here, please consultatie your tax professional.
How do I report mined cryptocurrency?
It depends on whether you are a hobby miner or a self-employed (business) miner. Here are some of the measures that the IRS provides for determining which camp you are te:
- The manner te which the taxpayer carries on the activity
- The expertise of the taxpayer or his advisors
- The time and effort expended by the taxpayer te carrying on the activity
- Expectation that assets used ter activity may appreciate te value
- The success of the taxpayer ter carrying on other similar or dissimilar activities
- The taxpayer’s history of income or losses with respect to the activity
- The amount of occasional profits, if any, which are earned
Spil you can see, there is some amount of subjectivity to the classification. Spil an example, if you have a full-time custom-built mining equipment, you are very likely a business, and if you are randomly doing some mining on an old laptop, you are very likely a hobbyist. Te both cases you will need to report your mined coins spil taxable ordinary income and your fundament will be the fair market value at the time you receive the coins.
If you are a hobbyist:
- Income will go on line 21 (other income) of your Form 1040 (US Individual Income Tax Comeback)
- Expenses directly associated with mining will go on a Schedule A form (Itemized Deductions), miscellaneous subject to 2% of AGI limitation (does not apply te 2018 onward)
- Your income is not subject to the 15.3% self-employment tax (only normal income tax), however you receive fewer and less valuable deductions against your income
If you are a business miner:
- Income and expenses both go on a Schedule C form (Profit or Loss from Business)
- Your income is subject to the 15.3% self-employment tax, however there are more valuable deductions against your income
What if I donate my cryptocurrency?
Ter the US, if you donate your cryptocurrency to an IRS-recognized tax-exempt charity (e.g. 501(c)(Trio) organization), the IRS does not require you to pay capital gains on the transaction and you can deduct the value of your donation based on the fair market value of the cryptocurrency on the date of the donation.
Do wash sales apply to cryptocurrency?
A wash sale occurs when you incur a capital loss, and then buy a replacement stock or security within a 30-day window before or after the capital loss is incurred. For example, let’s say you buy a Google stock for $1,000 on January 1, sell it for $800 on January Ten. You have incurred a capital loss of $200. Let’s say however than within 30 days (before or after) January Ten (even if it falls on a separate taxable year), you buy another Google stock — that is considered a wash sale and you cannot deduct the capital loss. Wash sales are ter place to prevent people from taking losses ter one tax year and then instantly buying back into the stock.
There is some debate spil to whether wash sales apply to cryptocurrency sales, however the IRS specifically states that wash sales only apply to stocks and securities. Since the IRS has also issued guidance that cryptocurrencies are property, wij do not calculate/apply wash sales. You should consultatie your CPA or tax professional for further advice on whether to apply wash sales to your cryptocurrency trades.
Can I apply a 1031 like-kind exchange to my cryptocurrency trades?
A 1031 like-kind exchange permits you to exchange property with someone else without having to pay taxes spil long spil the property being exchanged is “like kind” (i.e. similar). Typically thesis rules are meant to apply to real estate transactions, however there is some debate about whether they apply to other types of transactions such spil crypto:crypto trades.
Most experts believe that crypto:crypto trades do not qualify for like-kind exchanges, and this is also the conservative treatment so it is the philosophy wij go after spil well. Specifically every like-kind exchange does not apply by default, rather every transaction needs to be filed on an IRS Form 8824. Yes that means every single crypto:crypto transaction would need to be finished on it’s own Form 8824. On top of that, the IRS requires the use of a Qualified Intermediary for multi-party like-kind exchanges (such spil a transaction on a centralized crypto exchange). To the best of our skill, no centralized exchanges accomplish the necessary paperwork to be a Qualified Intermediary. This argument may not apply to decentralized peer-to-peer exchanges or in-person transactions, however even te those cases it seems like a large spread to apply the like-kind framework. Additionally, te 2018, the IRS has clarified that like-kind exchanges only apply to real estate (i.e. not cryptocurrency).
What is my tax rate for my crypto gains?
Te the US, the amount you pay ter federal taxes on your crypto gains depends on how long you have held the coins and your ordinary tax rate.
If you have held coins for one year or less, they are considered brief term capital gains. Te this screenplay, the gains are simply added to your income for tax purposes and taxed at your ordinary income tax rate (you can look this up here). This is the higher tax treatment screenplay.
If you have held the coins for more than one year, they are considered long term capital gains. Ter this screenplay, the gains are taxed inbetween 0 – 20% depending on your ordinary income tax rate (you can look them up here). This is the lower tax treatment script.
For example let’s say that your annual income is $50,000 and you are filing spil single. You buy one bitcoin on January 1, 2016 for $400 and sell it on January 1, 2018 for $1,000. You have a brief term capital build up of $600, which taxed at your ordinary income tax rate of 25% results ter a tax of 0.25 * $600 = $150 te extra federal taxes.
Instead let’s say that your annual income is $30,000 (still filing spil single). You buy one bitcoin on January 1, 2016 for $400 and sell if on January Two, 2018 for $1,000. You have a long term capital build up of $600. Your ordinary income tax rate is 15%, and your long term capital gains rate is 0%. Therefore you pay no federal tax on this bitcoin sale (state taxes may still apply).
You can read more about IRS’s guidance on brief and long term capital gains here.
Do I have to report every transaction where I buy something with cryptocurrency?
If your government has judged that capital gains were made when you spend cryptocurrency, then yes (like te the U.S., for example). This includes crypto:crypto trades.
How can I figure out my crypto taxes?
CoinTracker offers a few different methods to help you figure out your U.S. crypto taxes. Additionally, if you are ter the United States, you can refer to the IRS’s guidance on cryptocurrency taxes. Beyond that, you should consultatie your tax professional to understand how much tax you owe.
What options do I have for calculating my capital gains?
Te the US, the IRS has not released any specific guidance for capital gains calculation methods for cryptocurrency transactions. They have however released Publication 550 about stocks, bonds, and mutual funds. If wij apply this guidance to cryptocurrency, it states that there are two options for calculating capital gains: first-in first-out (FIFO) and specific identification. The simplest and most conservative method is FIFO, which is what CoinTracker provides by default. FIFO means that the very first coin that you purchase (chronologically) is the very first coin counted for a sale. With specific identification, you identify exactly which coin is being spent at transaction time. This can be ad-hoc or according to a pattern (e.g., highest-in-first-out [HIFO], last-in-first-out [LIFO], etc.).
Note however that with specific identification, you voorwaarde specify to your broker/exchange, at the time of the exchange, which specific stocks (or ter this case coins) you are selling/trading. Notably, this cannot be done retroactively and you vereiste receive written confirmation from the broker/exchange that they transacted the specific coins you identified te order for specific identification to be applied. If you have questions, please raadpleging your tax professional for guidance on your individual situation.
What are total proceeds and total cost fundament? Why are they so high? How is my capital build up positive when I’ve lost market value te my portfolio?
Total proceeds is the aggregate sum of the fair market value of all your crypto at trade/sell time across all your transactions (shown vanaf taxable year on the tax pagina). Ter other words, the total fiat-value omschrijving you got across all your crypto sells/trades. Total cost fundament is the same — aggregate sum of the fair market value of all your crypto — but for at trade/receive time. Basically how much wasgoed all the crypto you had worth at the time you got it. The difference inbetween thesis two values is your capital build up.
Depending on how frequently you trade crypto, thesis numbers can vary frantically from your netwerk fiat invested (the amount of fiat money you have waterput into crypto). For example, if you buy 1 BTC for $1,000 and then sell 1 BTC for $Two,000, then your total proceeds are $Two,000, your total cost onderstel is $1,000, your total capital build up is $1,000, and your market value of crypto is $0. You have made $1,000 and get taxed on it — superb! If instead you buy 1 BTC for $1,000 which appreciates ter value to $Ten,000 and then trade it for some ETH, and then the price of that ETH crashes to $100, then your total proceeds are $Ten,000, your total cost voet is $1,000, your capital build up is $9,000, and your market value is $100. You have lost $900 but have a capital gains tax bill on $9,000 — yikes! If you do lots of crypto day-trading, this can lead to massive amounts of total proceeds and total cost onderstel (sometimes numerous orders of magnitude more than the amount of netwerken fiat invested), but what matters is your capital build up (the difference inbetween the two).
It is also a good idea to dual check your accomplish transaction history to make sure that it is accurate and the list of common reasons for incorrect cost onderstel to make sure none of those apply to your account. If you have any questions, please email us at [email protected]
After purchasing a CoinTracker tax project, how can I verkeersopstopping my crypto taxes?
Option #1: Opstopping by hand yourself. You can download your finished IRS Form 8949 and cost ondergrond history from the tax pagina. Don’t leave behind to add your name and SSN to the 8949 pages (wij don’t ask this from you to protect your privacy). Additionally, the overall capital gains summary by long and brief term is cracked down on the tax pagina spil well for your Schedule D.
Option #Two: Verkeersopstopping with your existing registeraccountant/tax filer. Again, you can download your ended IRS Form 8949, cost fundament history, and capital gains summary from the tax pagina. Simply forward along thesis files to your registeraccountant/tax filer and they should know what to do with them. If they run into any problems, please email us at [email protected]
Option #Three: Verkeersopstopping with a crypto advisor. Same spil option #Two, however wij can refer you to a tax advisor familiar with crypto. You will see an suggest to get connected to someone with a $50 discount on the tax pagina after you purchase a tax project.
Option #Four: Opstopping using tax software (e.g. TurboTax). Unluckily, TurboTax’s online version of their software does not support importing transactions. To invoer your crypto transactions into the Downloadable/CD version of TurboTax (here’s how to switch if you are already using the online version):
- Open TurboTax for your current comeback. Click Opstopping > Invoer > From Accounting Software
- Select Other Financial Software (TXF opstopping) and click Proceed
- Click Browse Files. , find the “.txf” opstopping from CoinTracker, and select Invoer Now
- The opstopping should showcase up spil 1099-B. Select Invoer Now.
- Click Done on the next screen.
- From the top menukaart, navigate to Private > Individual Income and scroll down to Investment Income. You should see the fresh entries added here.
- Click Begin (or Update if you have already bot here) next to “Stocks, Mutual Funds, Bonds, Other”
- Notice that Needs informatie? says YES. There is no Institution Name set for the gegevens because crypto gegevens is not set to one institution. This is expected and you can overlook this warning
- Click Edit to see the information that has bot entered or Done to finish. Note that this only works for up to
Two,000 transactions. Beyond that you’ll have to by hand come in the summary information and then mail ter the Form 8949 separately (TurboTax walks you through this process).
Option #Five: Verkeersopstopping using Credit Karma. Unluckily they do not support uploading your Form 8949, so you will have to by hand inject the lines from your form into their contraption.
Option #6: Opstopping using H&R Block. Instructions are here.
How often are cryptocurrency taxes due?
The U.S. has a pay-as-you-earn tax system. That means, when you get a paycheck from your employer, taxes are withheld across the year. When you run a business, you pay quarterly taxes. When you owe more than $1,000 ter capital gains for the year, you should be making quarterly payments spil well (if you owe less than $1,000, then one annual payment is fine). Here is IRS’s guidance on quarterly taxes for capital gains.
You should be making your best estimates and if you overpay or underpay, you can keurig this at the end of the year using Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts). If you do not make estimated quarterly payments when required, or underpay too much, there are fees.
Which tax forms do I need to accomplish?
You should raadpleging your tax professional to figure this out.
Generally speaking, te the U.S., you will want a Form 8949 (Sales and Other Dispositions of Capital Assets) finish with your cryptocurrency transaction history, a summary of your overall capital gains (across all assets) on your Schedule D (Capital Gains and Losses), and then your Form 1040 (Individual Income Tax Come back).
Additionally, if any of your cryptocurrency assets were lost or stolen, you will want to accomplish Form 4684 (Casualties and Theft). If you held $Ten,000 or more on a foreign exchange (non-US based) at any time during the tax year, you need to verkeersopstopping a FBAR. If you held more than $75,000 on a foreign exchange during the tax year, then you voorwaarde additionally opstopping a Form 8938 (Statement of Specified Foreign Financial Assets, a.k.a FATCA) if, on a foreign exchange, you held either more than $75,000 (at any time during the tax year) or more than $50,000 (on the last day of the tax year). If you underpaid your quarterly taxes for capital gains, then you will want to finish a Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts).
I don’t have enough fiat money (e.g. USD) to pay my taxes. Should I sell crypto to pay my taxes? If so, won’t they be taxed again?
Te general, you should always gross up your crypto sales for taxes when taking profits trading cryptocurrency. Spil an example, let’s say that your effective tax rate on capital gains is 33%. If you are attempting to specie out $Ten,000 of profits from your bitcoin holdings, you should sell $15,000 worth of bitcoin and set aside $Five,000 for taxes (33% of $15,000 is $Five,000, leaving the $Ten,000 that you want to contant out). For help with your specific situation, you should consultatie your tax professional.
Where can I get tax advice on cryptocurrency?
Please speak with a Certified Public Registeraccountant (CPA), Enrolled Smeris, tax lawyer, or other tax profession who is familiar with your financial situation and the local tax laws. Wij opoffering $50 off a crypto tax filing service after you purchase one of our tax plans.
How can I avoid paying crypto taxes?
You should always pay your taxes.
There is a good chance you’ll get caught if you attempt to evade crypto taxes, and you don’t want to be paying late fees to your government or worse. Recall, all transactions on the blockchain are on a public, immutable ledger forever. If your government everzwijn finds out that you attempted to evade taxes, then can impose penalties on you retroactively.
Additionally, many exchanges are embarking to report trading history to governments either proactively or due to government subpoenas, and governments themselves are commencing to get more slim about tracking down tax evaders. The IRS is actively paying attention to this problem and released an official warning to not attempt and evade crypto taxes. Don’t be the person who goes to jail for committing tax fraud.
I accidentally did not decently report my tax for cryptocurrency for historical tax years. What should I do?
Speak with your tax professional. The IRS has also issued guidance on amending your tax comeback for a previous year.
This is ridiculous!
Sorry, wij don’t make the rules! Feel free to voeling your representative to let them know how you feel.
Do you report my capital gains to the IRS?
Where can I get more information about cryptocurrency taxes?
Please speak with your tax professional. Te addition, here are some excellent resources to examine:
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I love CoinTracker and would like to help support its development. Can I make a donation?
Wij love to hear that. Our best vleierij is for you to spread the word about CoinTracker. If you’d like to make a monetary contribution, our wallet addresses are:
- BTC: 1LVWReRsRPAvmMFi85te3Bodom6mKMTWzt
- ETH: 0x8bdCa229402B85A1901FD0D2f165c6EB320d629a
- LTC: LYg8iy8A6dRb7Qab1Jeq2GtsECPg6SQ443