As more and more countries increase their regulations towards cryptocurrencies, the higher the likelihood that you will need a crypto tax reporting tool. Keeping track of all your trades and transactions means having to compile the buy and sell date, cost basis, transfer fees and by using a specific regulatory system, determine what is to be expected to be calculated as income tax and what is a capital gain. ACCOINTING.com is a tool made by crypto trades for crypto traders and we understand your needs.
As a crypto trader you want to:
1. understand the possible opportunities in the market for tax loss harvesting easily and accurately
2. make more money and not waste time compiling transactions for crypto tax reporting
In order to do all of that, handling cryptocurrency has to be simple, fast, reliable, accurate, safe, transparent, affordable, and user-friendly. All the right variables need to be in the right place doing the right thing at the right time with a specific purpose.
Table of contents
Crypto Tax Reporting
In this section, you’ll learn some basics about tax reporting in ACCOINTING.com, as well as the different tools you have on the desktop site. Feel free to check the Crypto Tax Guide for more information.
|Short term gains||Gains generated less than a year, including margin gains|
|Long term gains||Gains generated more than a year|
|Total fees||Fees due to transactions on the last year|
ACCOINTING.com allows you to download different types of report files depending on your needs.
|File with CPA||It is recommended for people who participate in different crypto markets, like staking, margin trading, mining, etc.||Full Tax Report PDF + CSV |
Form 8949 PDF + CSV
All files in Excel
|File alone||This option is for people that want to do their tax report themselves.||Full Tax Report PDF|
Form 8949 PDF
How to file taxes PDF
|File with an online tool||For people who have external tax reporting apps||Turbo Tax CD|
Turbo Tax Online
Form 8949 CSV
b. Holding Period
Here, you can check and analyze your portfolio balance when you’re making long-term (more than a year) investments. It helps you identify when is the best time to claim your gains depending on your tax preferences and the time you’re willing to wait.
As you move the chart bar, ACCOINTING.com estimates the amount of crypto that can be claimed as long-term gains represented in a percentage.
- Holdings summary
- % long-term gains vs. time chart
- Holdings table
|Total Crypto Value||The total value of your portfolio|
|Gains < 1 Year||Gains obtained in less than a year calculated using current prices.|
|Gains > 1 Year||Gains obtained in more than a year calculated using current prices.|
% long-term gains vs. time chart: this percentage is calculated using the long-term earnings of your total value at a specific time. This space is also used to analyze the selected assets. If you click on a particular crypto coin, it’ll appear a chart that allows you to realize the timeframe when your selected crypto is beginning to produce long-term gains.
|ASSET||Name of your asset/wallet|
|VALUE/AMOUNT||Value of your amount of crypto at the current price|
|POSITIONS||Percentage of your gains|
|CURRENT PRICE||The present value of one coin|
|GAINS<1Y||Gains less than a year (short-term gains) since the first trade|
|GAINS>1Y||Gains more than a year (long-term gains) since the first trade|
|DETAILS||Show the distribution of your asset between wallets/exchanges and short-long gains in the amount of crypto|
c. Tax Methods
As stated in General Settings, you can change your tax preferences depending on your trade style or circumstances. The following is a summary of each method, so you can better understand their differences. For further explanation, visit chapter 8 of the crypto tax guide.
N: units sold
n: first units purchased
nL: last units purchased
nH: last units purchased with the highest price
P: price sold (current price)
p: first price purchased
pL: last price purchased
pH: Highest price purchased
CG = Capital Gain
|Tax method||Abbreviation||Description||Better scenario||Formula|
|First In, First Out||FIFO||Coins are sold in the exact chronology as they were purchased.||General circumstances||N*P – N*p = CG|
|Last In, First Out||LIFO||The last coins purchased as the first ones for sale.||Leveraging long-term holding period||N*P – n*pL + (N-n)*p = CG|
|Highest In, First Out||HIFO||Highest purchased coins as the one sold first.||Reducing taxes by using the most significant capital losses and the lowest capital gains||N*P – nH*pH + (N-nH)*p = CG|
d. Transaction Classifications for Crypto Taxes
For crypto tax reporting, the implications of the different types of transactions that you made will vary per country. Here’s a list of the different regulations per each of the supported countries in ACCOINTING.com
Here’s a list of the symbols per transaction inside of ACCOINTING.com. For staking income, classify it as income.