Reasons Why You Should Keep Track of Your XTZ and Create a Tax Report
- With the recent market, the IRS and other countries tax services are more interested in the crypto environment and will try to get the most out of the gains made in the last months. In case you want to cash out some of your gains or plan to use them legally in the future, you should report your crypto gains in your tax report (remember also, crypto-crypto trades are taxable).
- You can easily lower your tax burden in most countries if you can prove that your Holdings are older than 1 year. A proper record keeping allows you to do that.
- If you plan to cash out some of your gains into your bank, you often have to prove where you got your funds from.
- By importing all historical transactions in a Portfolio tracking tool, you can analyze your performance and the overall gains you made in crypto.
This article describes how you can get all of those benefits with a simple 3 step process that takes only a few minutes of your time.
3 Step Guide to Track XTZ and Create a Tax Report
1. Sync your Tezos address with ACCOINTING.com
This step shows you how to enter your Tezos Wallet’s public address in ACCOINTING.com to import all your historical transfers. You can find your address in your Tezos wallet.
Once you have your address, you can enter it here, and ACCOINTING.com will automatically sync your Tezos transfer History.
Note: ACCOINTING.com can only read historical transfers. A public address doesn’t allow any sort of interaction with the blockchain.
After you have finished this step you’ll find your historical Tezos Holdings in the Dashboard.
Once you have all your Tezos Addresses connected with ACCOINTING.com, it’s important to also sync your other exchanges and wallets in order to get accurate results. ACCOINTING.com supports more than 70 Exchanges and Wallets with a direct connection. You can find a full list here.
2. ACCOINTING.com calculates all XTZ gains, losses and taxes automatically
This step doesn’t require any action from your side. All you have to do is ensure you’ve selected the correct country here.
ACCOINTING.com uses different calculation methods and they are all preset for your country: FIFO, LIFO, HIFO, Multiple Depot, Single Depot, HMRC Pooling (incl. Bed and Breakfast).
3. File your Tezos Tax Report
After you synced your exchanges and Tezos Wallets you’ll find all sorts of analytical tools and insights in your Portfolio.
The Tax Report Feature allows you to easily create a tax report for the current year or for all past years you’ve been in crypto.
ACCOINTING.com creates country-specific crypto tax reports. The only thing you have to make sure of is that you select the correct country in the settings.
Thanks for viewing our 3 Step Guide to Track $XTZ and Create a Tax Report.
Use the 30% Discount Code for the ACCOINTING.com Report: TEZOS