What tools do you guys use for figuring out your tax obligations?
edit: for your bitcoin transactions I mean
My accountant.
Capital gains are capital gains, whether Bitcoin or otherwise.
Edit: My accountant is not a tool. Actually, he's a nice guy. Pisses some people off though... bit of an attitude.
I should look into an accountant - I hear they can generally find some deductions/tax breaks I'm missing out on. I don't have to worry about the current tax filing since I didn't sell anything but I want to be prepared. Thanks JimboT!
USA IRS? In the past I've used Koinly exporting to HRBlock Deluxe.
I think Koinly is great for just tracking, or double checking your numbers. You can set up the full account, just without downloading tax form privilages, for free. Connect your wallets. or upload transaction pdfs, or manually input cost basis. It will show your profits, balances, taxes due, just not export it.
https://koinly.io/ Thanks for the excellent summary, DirtyK
I had heard of Koinly but hadn't checked it out yet - nice to know someone who has used it!
Awesome heads up Biodom! Thanks.
I doubt I'll have many txs actually. In the past when I have used bitcoin for purchases, I regretted it immediately and bought them back within days.
I usually only have 1 sell per year so taxes aren’t all that difficult. Especially if you consider taxes beforehand and make sure that the amount you sell corresponds with an amount that you can easily show a cost basis for. That simplifies things a great deal.
This is more likely my style but an acquaintance showed me the record of a sale of a small amount of bitcoin from an exchange and even though he sold much less than one bitcoin in what he thought would be one transaction, there were many, many small transactions as buyers nibbled away at it. I would think if it was all at the same time and for the same price, there would be no need to break it down like that though. Thanks OgNasty.
not selling
I know, I know. It's not like I need the money so I'm back to JimboT's "only sell when you have to" advice. It's just going to be so tempting.
Thanks Gachapin! You're the voice of strength. 💪
i use bitcoin.tax website, basically because i used it early on and never bothered to explore anything else. prints out paper form 8949 (short and long term capital gains) and exports a 8949 spreadsheet in .CVS for you. this is for usa.
basically you import all trades at all exchanges via API or .CSV it does the rest.
cost depends on trade volume. under 20 trades is free.
obviously theres no privacy but this is the usa, we have no privacy anyway so..
edit not affiliated in any way.
Nice to know there are other options that have been around for a while. Thanks vapourminer. I'll check it out.
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