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1  Economy / Service Announcements / Get a personal walkthrough of new, state-of-the-art crypto tax software on: February 27, 2022, 04:10:00 AM
Haven't filed your crypto taxes yet? Try our powerful crypto tax software for FREE today and get support for up to 100k transactions! We are so confident in our product that we are currently offering free demos where one of our tax professionals will go through our simple four step process with you. Unlike other crypto tax software, which can be hard to use and inaccurate, Cointelli is a dream to use and leverages intelligent technology to ensure you get an accurate report. Let us show you how we can save you both time and money. If you do decide to file a report using our software, you will only pay $49 for this year's tax report. That's right! Only $49 and there aren't any hidden or transaction fees; depending on the number of your transactions, we could save you hundreds of dollars compared to our competitors. If you're interested, send us an email at support@cointelli.com and we will get back to you within 24 hours. But don't delay! Spots in our free demo sessions are filling up fast! Cointelli -- crypto tax reports you can trust, ready in minutes!
2  Economy / Service Announcements / How to prepare cryptocurrency taxes in 4 simple steps on: February 23, 2022, 02:50:37 AM
Let’s go through the process of preparing and reporting your cryptocurrency taxes step by step.

First, you calculate your capital gains and losses. Make sure you choose a specific cost basis and use the following equation to get these values:

Sales Price - Cost Basis = Crypto Gains/Losses

The second step is to familiarize yourself with the IRS’s Form 8949. Form 8949 will have two series of rows and columns (Parts I and II) where you will input your data. Cost basis, sales price, and gains/losses will be some of the data you’ll have to input.

The third step is actually filling in the 8949 and its accompanying Schedule D form. Group your short-term and long-term gains and losses together. Then, confirm on Parts I and II of the 8949 which types of short-term and long-term gains and losses you are submitting on the form. Select only one option out of A, B, or C from Part I and only one option out of D, E, or F from Part II. Once these have been selected, fill in the rows and columns on Form 8949 and Schedule D.

The last step is to include other forms of crypto income to your tax report, such as forking rewards and mining income. There is quite a variety of these other forms, but you don’t have to worry about these as much with Cointelli. Cointelli is designed from the ground up by seasoned CPAs and engineers to make it as simple as possible for you to accurately and swiftly produce a unified crypto tax form. Check us out at cointelli.com to learn more.
3  Economy / Service Announcements / 5 ESSENTIAL things to know about crypto tax in 2022 on: February 16, 2022, 07:14:28 AM
Starting this year, anyone who owns cryptocurrency is required to file taxes. The tax filing period is in full flight, but just how much do you know about cryptocurrency tax filing?

Cryptocurrency tax returns can seem complicated at first glance, but don’t worry! We’re here to help you out with the 5 top facts you need to know about cryptocurrency tax returns in 2022.

1. Cryptocurrencies are subject to taxation

The IRS has started cracking down on people not paying taxes when they purchase, sell or even hold cryptocurrency. If you traded cryptocurrencies this year, these transactions are considered as capital gains and are subject to taxation. Even holding on to cryptocurrency that has generated interest is now considered to be interest income and must be included in tax reports.

2. What happens if you don't file a report?

Since 2019, the IRS has been sending warnings to cryptocurrency traders. The federal agency is constantly improving its cryptocurrency-related tax evasion prevention systems. The IRS also receives reports of traders' transactions directly from cryptocurrency exchanges. Cryptocurrency traders who do not voluntarily file their tax returns can be fined up to $250,000 and sentenced to five years in prison.

3. How cryptocurrency taxes are calculated

At this point, you may be wondering how your crypto taxes are calculated. To put it simply, you subtract the price of the crypto at the time of purchase from the price of the crypto at the time of sale. However, this can quickly get confusing. For example, what happens when you sell only part of the cryptocurrency you purchased this year? In this situation, you can choose between multiple options.

The results can vary greatly depending on each option. Consider this hypothetical example:

In 2021, you bought three ETH at three different prices. The first one was $2000, the second one was $2500, and the last one was $2300. You then sell 1ETH for $2100. How do you calculate your gains or losses for the year? There are four different methods: FIFO, LIFO, HIFO and Special ID. Find out more about these here https://cointelli.com/blog/crypto-cost-basis.

4. How to prepare a virtual currency tax report

In 2019, Form 1040 was amended to include the following question: "Have you ever received, sold, sent, exchanged, or gained any other financial benefits during the tax reporting year?" Even if you're merely holding on to a cryptocurrency, the answer is yes.

The way you prepare your report varies depending on how the cryptocurrency was used. Was it treated as an investment asset or was it used as a payment method? In the former case, you must report the transaction information and your calculated income and losses using Form 8949, Schedule D. In the latter case, if you used it to purchase virtual currencies or goods, you must report it on Schedule C. Find out more about preparing your report here https://cointelli.com/crypto-tax-guide.

5. Tips for choosing platforms


When preparing your tax report, you should organize your transaction details in advance and document the evidence. It is recommended that you use an exchange that provides your transaction history in a CSV file or supports API integration.

From that point, the easiest way to get your forms filled out quickly and accurately is to use crypto tax calculation software. For more, click here https://cointelli.com/.
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