crypto taxes 2020 tax cointracking cryptocurrency bitcoin

Want an easy solution for tracking your portfolio and taxes at the same time? I have been a user and fan of CoinTracking for some time and it seems like a great solution for not only tracking your portfolio with pretty advanced metrics, but also for automatically generating those cryptocurrency tax forms you need here in the US. Follow along with the 'Stache and lets take a deeper look.

What is CoinTracking?

Cointracking tracks all your trades and creates a real-time report on how your portfolio is performing, what is the value of your portfolio, as well as auto-generates many important tax reports with both realized and unrealized gains included.

They currently have 500k active users and more than 750 CPAs & Corporate Clients. With 11 years of historical data and more than 7 thousand coins tracked you can be sure to have all the data required in order to generate precise reports for both newcomers and long-term crypto traders & investors.

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How does it work?

Your portfolio is tracked by either importing data manually with an Excel/CSV file or by using an API that currently offers most of the major exchanges out there such as Binance, Coinbase, Bittrex, Bittstamp, Bybit and many more. Additionally, data can be entered directly from most popular wallets such as Electrum, Exodus and Trezor among others. Otherwise, you can manually enter an excel report of your trades from any other exchange.

It really does make life easier when you can just connect CoinTracking with an exchange API and forget about it! Here is a full list of supported exchanges and wallets on Cointracking as well as manual entry options.

My favorite – Automatic Tax Declaration

One of the best features of Cointracking is being able to automatically generate capital gains reports with the option of 12 different tax reports such as FIFO (First-In, First Out), LIFO (Last In, First Out), AVCO (Average Cost Method) and more. Different tax valuation methods can be used to reach a desired taxable profit level by changing the way you account for your trades and profits taken, especially in the case of several large transaction over a year that have a significant entry and exit price difference. This, however, largely depends on what country you are located in. CoinTracking can also be used for an easy capital loss calculation in case of losses on investments on your tax return in order to reduce the tax paid on other incomes such as income from stocks or your wage.

These reports are automatically generated and can be given directly accountants or your local tax office with a possibility to change parameters for every country – no worries if you need to give a German or other tax declaration. Additionally, CoinTracking tracks when your coin holding period ends and a reduced tax rate can be used to sell them. It really does make life easier once set up correctly.

In case further help is needed

CoinTracking cooperates with 56 tax professionals from several countries such as the United States, Germany, Australia and several more. They will help you check your tax return and file the report correctly if needed. Really a nice feature in case something needs a double check.

List of tax consultants with cryptocurrency experience that CoinTracking recommends can be seen here.

Otherwise, CoinTracking offers a full-service solution to help you with every step: imports, reviews, and tax report creation.

How much does it cost?

Currently, there is a free version for anyone to check out and it offers 200 free transactions as well as 5 MB per CSV file for manual import, however, it offers limited features for Tax & Capital Gain reporting. Alternatively, a paid plan is offered for 9.99 USD per month and will most likely be suitable for most investors and traders as it offers support for up to 3,500 transactions, 20MB per CSV file and gives to the opportunity to fully generate Tax & Capital Gain reports.

Go and try it!

Overall I must say I’m really satisfied with this tool as it makes tax reporting very easy once set-up correctly. Since most of the largest exchanges can be connected with a basic API, this really does streamline the whole tracking and tax reporting process and can save a lot of work otherwise.

Additionally, CoinTracking offers a lot of data to analyze your portfolio and keep track of which coins are located where and what their value is at any point. The services they offer for the price is almost unbeatable so give that free trial a go and if you need any help, let me know!

More great cryptocurrency product reviews coming at you soon, but until next time...

'Stache That Crypto Friends!

Posted from my blog: https://www.cryptostache.com/2020/02/17/cointracking-makes-it-easy-to-file-your-2020-crypto-taxes-track-your-cryptocurrency-portfolio/