CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies

[wiser]

I just reached the 200 trades. I was going to upgrade until I saw the ridiculous price. Wow, I'm doing the same thing now with BitcoinTaxes for a tenth of the cost.

Yeah, it's ridiculously expensive if you want to upgrade. Such a nice software too... too bad.

Thanks for the tip about Bitcoin Tax. It may turn out that I need the deluxe service (with the very deluxe price!) advertised here. However, for $20 I'm willing to try the cheaper service and see if it will meet my needs. If it doesn't I'm out $20 and will be back on CoinTracking to upgrade my account. If it does meet my needs, then I will have just saved myself around $400.

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[hgmichna]

I just reached the 200 trades. I was going to upgrade until I saw the ridiculous price. Wow, I'm doing the same thing now with BitcoinTaxes for a tenth of the cost.

I don't think the price is "ridiculous". Programming a system like this is a lot of work which needs to be paid for.

That said, I could imagine other pricing methods. If somebody has more than 200 trades, but has only a thousand dollars in cryptocoins, then the price is probably too high to pay. Perhaps the number of trades is not the best metric to determine a reasonable price.

[hgmichna]

How can I enter tax-free coins? Let me give a few examples.

1. I let an exchange or some other kind of company keep coins on my behalf. The company goes bankrupt or at least stops operating. I book the coins as lost. I might not even have used CoinTracking then. Years later the company comes back to life and still has some of my coins. Since they have been held for more than a year, these coins should incur lower or no taxes. How can I book them into CoinTracking without falsely incurring fully taxable gains when I sell them soon thereafter?

2. I lose the key to a wallet and book the coins as lost. Years later I find the key again. Since I have held these coins for longer than a year, they should be taxed lower or not at all. How do I book these in CoinTracking?

3. I win bitcoins in a bet. Winnings from bets are tax-free in my country, so how do I book them in CoinTracking? Obviously they have to be included in FiFo calculations if at all applicable, i.e. when these coins are sold under a FiFo regimen, the sale should be tax-free.

[Its About Sharing]

Question Please

How do you integrate a paper wallet held more than 1 year (for long term capital gains benefits) into cointracking?
In the country I am filing in, they only except FIFO. So, I will do my taxes that way for my trading, but with my long term paper wallets (when I roll them into, e.g. Ethereum) I want to legally get the long term capital gains. (Note - I am importing exchange date for the most part.)

Thanks,
IAS

[hgmichna]

How do you integrate a paper wallet held more than 1 year (for long term capital gains benefits) into cointracking?
In the country I am filing in, they only except FIFO. So, I will do my taxes that way for my trading, but with my long term paper wallets (when I roll them into, e.g. Ethereum) I want to legally get the long term capital gains. (Note - I am importing exchange date for the most part.)

I'm not from CoinTracking and they might still reply, but I had the same problem with bitcoins and can say a few words.

The basic idea is that you include all your paper wallet information into your bookkeeping.

You can manually import the paper wallet's bitcoin address into CoinTracking:

• Click on "Enter Coins".
• Scroll down to "Bitcoin Wallet Import" and click on it.
• Copy the paper wallet's public bitcoin address into the field "Your BTC Address".
• Fill in the rest of the form.
• Click the "Import …" button.

CoinTracking will then automagically read all coin movements on the paper wallet directly from the blockchain. But, of course, it still cannot know where you got the bitcoins from originally and how much you paid for them.

If the laws of your country, like Germany, make the sale of coins held longer than the limit completely tax-free and if you have held those coins for longer, then it plays no role for how much you bought them for tax purposes. The tax would be zero anyway.

If the law allows a lower tax, but still more than zero, after a certain holding time, like the US, then you still have to provide information on how and for how much you bought the bitcoins, so CoinTracking can determine the gain and the tax.

[Its About Sharing]

How do you integrate a paper wallet held more than 1 year (for long term capital gains benefits) into cointracking?
In the country I am filing in, they only except FIFO. So, I will do my taxes that way for my trading, but with my long term paper wallets (when I roll them into, e.g. Ethereum) I want to legally get the long term capital gains. (Note - I am importing exchange date for the most part.)

I'm not from CoinTracking and they might still reply, but I had the same problem with bitcoins and can say a few words.

The basic idea is that you include all your paper wallet information into your bookkeeping.

You can manually import the paper wallet's bitcoin address into CoinTracking:

• Click on "Enter Coins".
• Scroll down to "Bitcoin Wallet Import" and click on it.
• Copy the paper wallet's public bitcoin address into the field "Your BTC Address".
• Fill in the rest of the form.
• Click the "Import …" button.

CoinTracking will then automagically read all coin movements on the paper wallet directly from the blockchain. But, of course, it still cannot know where you got the bitcoins from originally and how much you paid for them.

If the laws of your country, like Germany, make the sale of coins held longer than the limit completely tax-free and if you have held those coins for longer, then it plays no role for how much you bought them for tax purposes. The tax would be zero anyway.

If the law allows a lower tax, but still more than zero, after a certain holding time, like the US, then you still have to provide information on how and for how much you bought the bitcoins, so CoinTracking can determine the gain and the tax.

Thanks for the answer. I thought there must be a way. The coins were in cold storage a couple of years and then I traded them for some alts earlier this year. So, I will see if the software puts them down as a long term capital gain. So many "missed" trades (see following) and I expect more problems. I might have to manually enter a whole lot of trades. Nice software, but I really wish it was a bit more intelligent (e.g. offering solutions, possibilities, etc.) For hundreds of Euros, if not thousands, it should do more. But, it is much better than bitcointax from my brief testing.

Has anyone had any experience with "There is no suitable purchase for XX sales. Please check your entered trades if all purchases are properly filed." I have all my trades from the 2 exchanges in question and not only is it not able to account for a few trades, but it also puts me in a losing position, tax wise. I'm using FIFO. I've tried manually editing things, but it is beyond complicated, not really doable.

And what about Shapeshift? Any way to easily track things and account for losses/profits using your wallet address.

Thanks for the help, wish I could help you with your question the page before.

EDIT - I tested 2 paper wallets, both held over a year. When I imported them it was successful (and the alert said the job was completed). But, it never asked me for a recalculation and when I ran a tax report, nothing changed as far as tax owed (it should have gone done). As you said, there is not a price basis, and I don't see how to do that. But, when I deleted the address, then it asked for a recalculation. I tried to reimport it again, to see if it would ask for a recalculation, but it said it was already imported, though the data was gone? I think there needs to be a way to add the transaction (with cost) at just before the paper wallets creation?
EDIT 2 - I added the purchase of the coins just prior to the paper wallets creation. Coins were held two years. It asked for a recalculation and my taxes went up. :-(   This is not making sense.

[hgmichna]

I think there needs to be a way to add the transaction (with cost) at just before the paper wallets creation?

Yes, since the wallet neither buys nor sells, it has no effect on the tax.

Perhaps you can simply have your paper wallet loaded with an income transaction on the paper wallet, which, I think, automatically values the coins at the time of the transaction as if you bought them.

I could not find definitions of what the transaction types actually do, so I still have to guess and test a little bit.

[Digital Asset]

Dear Cointracking, I am unable to login to your App, please advise.

You have been BLOCKED because of evil or suspicious bot behavior.
If you are a human, please let us know and we will unlock you immediately.

[Its About Sharing]

I think there needs to be a way to add the transaction (with cost) at just before the paper wallets creation?

Yes, since the wallet neither buys nor sells, it has no effect on the tax.

Perhaps you can simply have your paper wallet loaded with an income transaction on the paper wallet, which, I think, automatically values the coins at the time of the transaction as if you bought them.

I could not find definitions of what the transaction types actually do, so I still have to guess and test a little bit.

I figure since I am using FIFO, that even though I bought the BTC right before the paper wallet was opened, it still didn't use it. So, we need to do what you said. It just seems, there should have been this functionality in the software a while ago, it is around since 2013 I think. It appears like we are figuring out a work around.

I can probably find the original transaction for the purchase of those coins by using the blockchain, but how do we link that to the paper wallet? I would think the software should do this as part of the import, but clearly it hasn't (even after a recalculation) for as I said, my taxes went up.

Thanks for the help
I'm placing a support ticket and will report back next week or whenever they get back to me.

[Onda_su_onda]

there is an error between the BitCAD token (BCD) and BitcoinDiamond (BCD)

[Its About Sharing]

Tech support was fast! I have yet to try the paper wallet solution, but here it is:

There are two ways to achieve this.

You can use our group feature in order to assign the same group to the transactions you would like to bundle for the Tax-Report.

Later you first calculate the taxes for these groups only and and exclude them from the total Tax-Report. This can easily be done with the filter on the Tax-Report page.

The second possibility is to link/use multiple accounts, as described in our FAQ and to completely separate exchange and Wallet data.

We always recommend to talk to a professional accountant in order to find the best solution for your tax declaration.

I hope it helps.

[sgjenks01]

H Dario et al,
I've been kind of ignoring cryptos for a while, which included ignoring CoinTracking. You guys have been BUSY! I just signed up for your lifetime service, that's just how awesome I think this service is!

Now, I do have a question. I ran the tax report for 2017 and it told me I had two errors (no buy for a sell). The first time I ran the report, it told me (somewhere) what coins were involved in the error (KMD and BCN). I made some changes in KMD and I could find nothing wrong with BCN. I ran the report again and now it says there is one error somewhere. Unfortunately, I can no longer find where CT told me which coins were involved in the first place and I am a loss to find the error.

Any hints?

Also, I'm not following the logic on mining income. Apparently, the cost basis is being increased by the quantity mined times the price of the crypto on the date the mining was reported to CT. It had the result of increasing my cost per coin such that the unrealized gains dollar amount didn't change. Shouldn't the cost basis of the mined coins be zero??? Done that way, the cost per coin would only show the cost for the initial purchase of coins and only the number of coins held would increase. The only way I could get it to reflect unrealized gains the way I thought it should work is by making a trade transaction "buying" the amount of mined coins and selling $0 USD (or any other coin). Doing it that way left the dollar basis of the coins unchanged, reduced the cost per coin, increased the current balance and showed the gains in Unrealized Gains.

What am I missing here?

One more thing: Do you have a write-up on how to handle forks? (BCH, BTG)

Thanks,

Steve

[depi]

Guys.

2 questions:
1) How do you deal with TREZOR legacy + segwit accounts? When I import both, my data is screwed up.
2) How should I import ETC?

[hgmichna]

How can I enter tax-free coins? Let me give a few examples.

1. I let an exchange or some other kind of company keep coins on my behalf. The company goes bankrupt or at least stops operating. I book the coins as lost. I might not even have used CoinTracking then. Years later the company comes back to life and still has some of my coins. Since they have been held for more than a year, these coins should incur lower or no taxes. How can I book them into CoinTracking without falsely incurring fully taxable gains when I sell them soon thereafter?

2. I lose the key to a wallet and book the coins as lost. Years later I find the key again. Since I have held these coins for longer than a year, they should be taxed lower or not at all. How do I book these in CoinTracking?

3. I win bitcoins in a bet. Winnings from bets are tax-free in my country, so how do I book them in CoinTracking? Obviously they have to be included in FiFo calculations if at all applicable, i.e. when these coins are sold under a FiFo regimen, the sale should be tax-free.

I have to correct my earlier posting and have to rethink bets. I'm not sure about these any more. They may be taxed like gifts, i.e. their acquisition is tax-free, but selling them later is taxed normall. Does anybody have more precise information about how bets are taxed in different countries?

Let me try again for the other two cases. How can I enter tax-free coins? Examples:

1. I let an exchange or some other kind of company keep coins on my behalf. The company halts operations. I book the coins as lost. I might not even have used CoinTracking at the time. Years later the company comes back to life and still has some of my coins. Since they have been held for more than a year, these coins should incur lower or no taxes. How can I book them into CoinTracking without falsely incurring fully taxable gains when I sell them soon thereafter and without having to alter bookings in previous years?

2. I lose the key to a wallet and book the coins as lost. Years later I find the key again. Since I have held these coins for longer than a year, they should be taxed lower or not at all. How do I book these in CoinTracking, again without having to alter historic bookings?

[Its About Sharing]

ICO question - I have inputted about 4 ICO trades that were closed as losses (so as to offset some gains). So, I have the purchase (in ETH) input and I have sales at a loss a few months later input. When I look at the report, it is saying that the cost basis for every trade is zero and showing profitable trades for all. These were manually entered. Might it be related to trades prior in ETH? or ?

It looks like this:
I Bought X for $560
I Sold X for $151

Program says:
Cost basis $ 0
Profit $151

I experimented by buying ETH right before the above purchase, in the software, still says basis is 0. (Note - I did that as I have some warnings with no prior trades showing.)

[Silviu77]

Hi guys,

I just started using CoinTracker and i find it really awesome!

I'm checking the new Current Balance report and it has a nice trend chart for past 30 days next to each coin.
I wonder if there is any option/setting somewhere to show the 30 days trend chart in BTC instead ?

Would be really interesting to track the coin performance in BTC terms if possible.

Hope someone figured it out already : )

Cheers!

[sgjenks01]

I wonder if there is any option/setting somewhere to show the 30 days trend chart in BTC instead ?

@Silviu77
There is a box at the top of the graph that shows "in USD". It has a enumerator (down arrow) to the right. Just click on that and select BTC instead of USD

[Silviu77]

@sgjenks01
Thanks a lot for the quick feedback!

I'm looking at the page for that enumerator but i can't seem to find it for the life of me..

I'm attaching a screenshot below URL, possible to highlight exactly where should i click? : )

https://imgur.com/a/2R1g1

Cheers!

[sgjenks01]

I'm looking at the page for that enumerator but i can't seem to find it for the life of me..

Ahh! I was referring to the chart on the Dashboard page which shows all your combined hodlings.

You are right, it would be nice to see the thumbnail charts priced in BTC as well as USD (a toggle). That would be a feature request to Dario or Kevin.

[Silviu77]

You are right, it would be nice to see the thumbnail charts priced in BTC as well as USD (a toggle). That would be a feature request to Dario or Kevin.

@sgjenks01
Indeed, i think so too. It will be a really useful feature to be able to toggle the Current Balance report 30 days chart to either BTC/USD.

*** Official request to Dario and Kevin ***
Guys think would be possible to add this in?
Pretty please : )

Cheers!