BitcoinFastTax.com - Fast, Easy, Free Tax Calculator for bitcoin transactions

[galgitron]

We're almost ready for full launch.  Would appreciate the community's feedback

https://www.BitcoinFastTax.com

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[RustyNomad]

Just tried out the site.

The site looks professional and I found it very easy to use. I just tried with one of my addresses and all the calculations seem to be correct.

Something you guys might want to look into is to add the ability for users to enter a hd wallet xpub key instead of single addresses. It would be far easier to just copy/past a xpub key instead of adding every single address.

With HD wallets that can be a real pain as most HD wallets use a new address for every transaction meaning that you might end up with a load of addresses by the end of the year. Would be far easier to just enter the xpub key then instead of trying to copy/past every single address.

[galgitron]

Just tried out the site.

The site looks professional and I found it very easy to use. I just tried with one of my addresses and all the calculations seem to be correct.

Something you guys might want to look into is to add the ability for users to enter a hd wallet xpub key instead of single addresses. It would be far easier to just copy/past a xpub key instead of adding every single address.

With HD wallets that can be a real pain as most HD wallets use a new address for every transaction meaning that you might end up with a load of addresses by the end of the year. Would be far easier to just enter the xpub key then instead of trying to copy/past every single address.

Thank you for the positive feedback, and your suggestion makes great sense.  We're looking into BIP44 support for the near future

[Bifta]

This is only for the US, right? How about adding some stuff for other countries and their tax reporting?

[galgitron]

This is only for the US, right? How about adding some stuff for other countries and their tax reporting?

Definitely having support for other countries is on our future development list but we are only supporting the US for this initial release.  That being said, it is possible to use our 'RAW' strategy option to retrieve all your individual bitcoin purchases and sales along with their associated market value at the time of the trade, and this information should assist in declaring gains/losses in other tax jurisdictions.

[countryfree]

I'd rather have a colorectal examination live on TV than use a tax calculator for my BTC transactions.
Don't you know that privacy is a main reason why many people use and enjoy BTC?

I want the government to die, and BTC's one of the sharpest tool there is towards that goal. Who could be dumb enough to use such software?

[galgitron]

I'd rather have a colorectal examination live on TV than use a tax calculator for my BTC transactions.
Don't you know that privacy is a main reason why many people use and enjoy BTC?

I want the government to die, and BTC's one of the sharpest tool there is towards that goal. Who could be dumb enough to use such software?

Thanks for the feedback.  One of the main goals of BitcoinFastTax was to preserve the user's anonymity, and this is evident in every aspect of the BFT website, from not requiring personal information, to SSL, to even promoting the usage of TORBrowser to access our site.  We are not in the business of assisting the IRS, despite what it may seem.  The larger picture is that the IRS simply 'will' have knowledge of some Bitcoin addresses' owners, whether they know/like it or not, and the IRS will expect to receive taxes for those transactions.  This personal information is in the hands of the IRS because any legitimate vendor that accepts bitcoins is required by anti-money-laundering legislation to report the activities of their customers, and if someone makes a purchase with bitcoins from an address in their wallet, well it's a simple matter to cross-reference the block-chain and discover practically all the addresses that belong to that person's wallet.  Since the IRS has their personal information, and can find most/all of their other addresses in the block-chain, this means they can calculate a bitcoin user's overall tax liability.  The role of BFT is to give the user's the same view of their holdings as the IRS has, so they know the depth of their exposure and subsequent tax liability.  You can't keep your head in the sand, taxation on bitcoins is an unavoidable reality.

This isn't to say that hiding bitcoins isn't possible; the only effective way to conceal bitcoins from the IRS is to have a wallet that is taxable (which you use to make exposed purchases where your ID is known, and to accept bitcoins from exposed sellers that know you), and have a wallet that is 'not' taxable, where you keep your anonymous mining profits and unexposed/anonymous transactions.  Don't mix these wallets.  Disclaimer: BFT does not endorse or promote strategies to hide taxable assets from the IRS, this information is here solely for educational purposes.

Remember, the IRS will retroactively chase you for taxes so if you want to truly understand your tax position as far as the IRS can discover, the BFT website will help you.

One more important aspect to consider, the biggest obstacle to global bitcoin adoption is the hesitation of American companies to fully support bitcoins, for the sole reason of the tax complexity surrounding their usage, and likewise many legitimate uses for bitcoins fail to gain momentum due to the fear of the average person not understanding the complex taxation laws for bitcoins, and thus they just avoid the issue.  By removing the tax complexity obstacle with the BFT website's tax calculator, adoption of bitcoins should now be uninhibited and grow spectacularly, particularly in value.  So you see, it's in everyone's interest that a legitimate taxable path exists for bitcoins.

[melisande]

The idea behind this project is good but it will contradict the purpose which bitcoin was made, no central authority and the likes purposes behind bitcoin creations will be defeated.
Bitcoin should be tax free.

[rammy2k2]

Way too much text and buttons for what u want the site to be.
Make it 90% more simpler, check preev.com and so on ...

[countryfree]

Taxation on bitcoins is an unavoidable reality.

It is, but you need to have some imagination. I know I'll never pay any tax on my BTC activities, but then the last time I've paid income tax was in 1997, and BTC certainly won't change that. Note that I'm not American, and that I don't live on American soil, though.

One more important aspect to consider, the biggest obstacle to global bitcoin adoption is the hesitation of American companies to fully support bitcoins.

No. I used to work for an American company, and I asked them to pay me with BTC. They replied they couldn't do that so I stopped working for American companies and that was it. There's a whole world outside the US!

[galgitron]

The idea behind this project is good but it will contradict the purpose which bitcoin was made, no central authority and the likes purposes behind bitcoin creations will be defeated.
Bitcoin should be tax free.

The function of BitcoinFastTax is to enable the average person or company to simply and easily calculate their bitcoin taxes, which can't help but spur adoption because many legal uses for bitcoins are inhibited by the complex tax laws surrounding them.  You are not in any way being further coerced into paying taxes by the mere presence of BFT.  We are not an instrument of the IRS, nor are we opposing the spirit of bitcoin, we are simply a tool to help people calculate their bitcoin-related taxes if they need to, and so they know what the IRS knows.  I know it may seem that our site complements the agenda of taxation, but that's a bit like blaming the weather report for the hurricane.

[galgitron]

Way too much text and buttons for what u want the site to be.
Make it 90% more simpler, check preev.com and so on ...

As with anything this day and age, disclaimers and details convolute what really should be a simple thing.  However reading all the text isn't mandatory to understand how to use the calculator, though from a bitcoin newbie perspective, they'll want most of this information.  That being said, with a single paste and as little as 3 button presses, you'll have downloaded your current bitcoin capital gains/losses 8949 data.  I  would argue that's considerably efficient.  Can you suggest an specific example of how you would improve the process?

[galgitron]

One more important aspect to consider, the biggest obstacle to global bitcoin adoption is the hesitation of American companies to fully support bitcoins.

No. I used to work for an American company, and I asked them to pay me with BTC. They replied they couldn't do that so I stopped working for American companies and that was it. There's a whole world outside the US!

I believe it's worth considering that widespread American bitcoin adoption currently represents the most significant unrealized plateau in bitcoin's evolving legitimacy on the world stage

[melisande]

The idea behind this project is good but it will contradict the purpose which bitcoin was made, no central authority and the likes purposes behind bitcoin creations will be defeated.
Bitcoin should be tax free.

The function of BitcoinFastTax is to enable the average person or company to simply and easily calculate their bitcoin taxes, which can't help but spur adoption because many legal uses for bitcoins are inhibited by the complex tax laws surrounding them.  You are not in any way being further coerced into paying taxes by the mere presence of BFT.  We are not an instrument of the IRS, nor are we opposing the spirit of bitcoin, we are simply a tool to help people calculate their bitcoin-related taxes if they need to, and so they know what the IRS knows.  I know it may seem that our site complements the agenda of taxation, but that's a bit like blaming the weather report for the hurricane.

blaming the weather report for the hurricane very funny however it seems your tool could be more useful to big exchangers that converts bitcoin to USD

[galgitron]

The idea behind this project is good but it will contradict the purpose which bitcoin was made, no central authority and the likes purposes behind bitcoin creations will be defeated.
Bitcoin should be tax free.

The function of BitcoinFastTax is to enable the average person or company to simply and easily calculate their bitcoin taxes, which can't help but spur adoption because many legal uses for bitcoins are inhibited by the complex tax laws surrounding them.  You are not in any way being further coerced into paying taxes by the mere presence of BFT.  We are not an instrument of the IRS, nor are we opposing the spirit of bitcoin, we are simply a tool to help people calculate their bitcoin-related taxes if they need to, and so they know what the IRS knows.  I know it may seem that our site complements the agenda of taxation, but that's a bit like blaming the weather report for the hurricane.

blaming the weather report for the hurricane very funny however it seems your tool could be more useful to big exchangers that converts bitcoin to USD

I believe anybody, individual or company, that uses bitcoins to purchase goods or services from companies/websites that must report under FinCEN (http://www.fincen.gov/), which is pretty much every site imaginable, will invariably have to calculate their bitcoin capital gains/losses.  This is a fact, and there is little doubt that the IRS will eventually send each and every single person that uses bitcoins, a bill for overdue taxes.  I see many people in denial about the ability and/or legitimacy of the IRS's intent to proactively and retroactively pursue taxes for your bitcoin trades, and to date the IRS has been slow to encompass and enforce said taxation, but make no mistake, if you use or have ever used bitcoins on FinCEN-reporting websites, your entire wallet of addresses has been publicly exposed in the blockchain, your identity is known to the IRS, and your tax liability is deterministic, and unless an unlikely amnesty is granted, the IRS may soon send you a bill for bitcoin profits as far back as 2009!  What's more, even if you never convert your bitcoins to fiat currency and just buy and sell stuff with bitcoins, from the perspective of the IRS, this is called 'bartering', and there is an implied conversion to fiat that is taxed in the same way as if you actually converted to cash first.

I entirely sympathize with the interpretation of injustice this taxation represents to most people, especially from the 'new world order' root perspective that bitcoin's popularity originally surged, but let's keep one important thing at the focus: there is nothing the IRS can do to remove the original attributes of anonymity of bitcoin, unless you expose yourself.  Thus, bitcoins have evolved into a dichotomy, 1) the original, underground, and still very present anonymous ungoverned currency, and 2) the evolving taxable, exposed, and legitimized 'property' version of bitcoin (like a stock).  The IRS owns the second, but can't touch the first.  You have full control over which of these two aspects of bitcoin you participate in, therefore, use bitcoins in the manner most appropriate for your needs.  Ultimately though, it's increasingly more likely you'll start to use at least some bitcoins on FinCEN sites, thus, the BFT website will be an essential tool for you.

[melisande]

The idea behind this project is good but it will contradict the purpose which bitcoin was made, no central authority and the likes purposes behind bitcoin creations will be defeated.
Bitcoin should be tax free.

The function of BitcoinFastTax is to enable the average person or company to simply and easily calculate their bitcoin taxes, which can't help but spur adoption because many legal uses for bitcoins are inhibited by the complex tax laws surrounding them.  You are not in any way being further coerced into paying taxes by the mere presence of BFT.  We are not an instrument of the IRS, nor are we opposing the spirit of bitcoin, we are simply a tool to help people calculate their bitcoin-related taxes if they need to, and so they know what the IRS knows.  I know it may seem that our site complements the agenda of taxation, but that's a bit like blaming the weather report for the hurricane.

blaming the weather report for the hurricane very funny however it seems your tool could be more useful to big exchangers that converts bitcoin to USD

I believe anybody, individual or company, that uses bitcoins to purchase goods or services from companies/websites that must report under FinCEN (http://www.fincen.gov/), which is pretty much every site imaginable, will invariably have to calculate their bitcoin capital gains/losses.  This is a fact, and there is little doubt that the IRS will eventually send each and every single person that uses bitcoins, a bill for overdue taxes.  I see many people in denial about the ability and/or legitimacy of the IRS's intent to proactively and retroactively pursue taxes for your bitcoin trades, and to date the IRS has been slow to encompass and enforce said taxation, but make no mistake, if you use or have ever used bitcoins on FinCEN-reporting websites, your entire wallet of addresses has been publicly exposed in the blockchain, your identity is known to the IRS, and your tax liability is deterministic, and unless an unlikely amnesty is granted, the IRS may soon send you a bill for bitcoin profits as far back as 2009!  What's more, even if you never convert your bitcoins to fiat currency and just buy and sell stuff with bitcoins, from the perspective of the IRS, this is called 'bartering', and there is an implied conversion to fiat that is taxed in the same way as if you actually converted to cash first.

I entirely sympathize with the interpretation of injustice this taxation represents to most people, especially from the 'new world order' root perspective that bitcoin's popularity originally surged, but let's keep one important thing at the focus: there is nothing the IRS can do to remove the original attributes of anonymity of bitcoin, unless you expose yourself.  Thus, bitcoins have evolved into a dichotomy, 1) the original, underground, and still very present anonymous ungoverned currency, and 2) the evolving taxable, exposed, and legitimized 'property' version of bitcoin (like a stock).  The IRS owns the second, but can't touch the first.  You have full control over which of these two aspects of bitcoin you participate in, therefore, use bitcoins in the manner most appropriate for your needs.  Ultimately though, it's increasingly more likely you'll start to use at least some bitcoins on FinCEN sites, thus, the BFT website will be an essential tool for you.

Now i understood your tool better and i guess you deserves some donations, why not consider including your btc in your signature?

[galgitron]

Now i understood your tool better and i guess you deserves some donations, why not consider including your btc in your signature?

Thank you for the compliment   I'm hoping people can find my donations page on the website where it's context relevant.  I'm just borrowing my bitcointalk account to get helpful feedback before I fully launch the site, but I don't want to inherently tie this account to BFT.

[melisande]

Now i understood your tool better and i guess you deserves some donations, why not consider including your btc in your signature?

Thank you for the compliment   I'm hoping people can find my donations page on the website where it's context relevant.  I'm just borrowing my bitcointalk account to get helpful feedback before I fully launch the site, but I don't want to inherently tie this account to BFT.

Alright you have really done a good job but i hope bitcoin community will really appreciate your effort and give you some credits.
I wish you best of luck.

[galgitron]

XPub key support has been added