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Author Topic: Software to calculate trade-earnings? (for taxation)  (Read 1746 times)
bitcointaxes
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March 09, 2014, 01:05:35 AM
 #21

This year it's easy, because I started bitcoin in 2013. I know I made an initial deposit of $X and at the end of the year I had $Y and I subtract them. Otherwise I wouldn't know what the hell to do because I've not only done bitcoin trading but arbitrage, altcoin trading, and altcoin arbitrage, used about 8 exchanges, and half of the exchanges I've used have closed.

Agree, if you started in 2013 and paid one currency, bought Bitcoin, sold them all, got your USD back.

But if you have some Bitcoin left, you need to be calculating their cost basis for next year. If you sold any then bought them back at all, traded alt-coins,  it will have changed.

https://bitcoin.tax - calculate taxes for Bitcoin and digital-currencies
Roccker (OP)
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March 09, 2014, 02:34:40 AM
 #22

All our fiat conversions are the daily average taken from oanda.com. The date is the date that the conversion happened, i.e. the sale date for a sell and the buy date for a buy.

Great, thanks!
Just quickly to make sure: the trading fee’s are already substracted from the trading gains? Are buying fees already in buy-prize (“proceeds”) and selling fee’s already in sell-prize (“cost basis”)?

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update 2018: not total newb anymore i guess- now turned megalomaniac
bitcointaxes
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March 09, 2014, 04:18:27 AM
 #23

Just quickly to make sure: the trading fee’s are already substracted from the trading gains? Are buying fees already in buy-prize (“proceeds”) and selling fee’s already in sell-prize (“cost basis”)?

Yes, the cost basis is the cost of buying, (price * volume) + fees.

Proceeds are, (price * volume) - fees.

Gain is their difference.

https://bitcoin.tax - calculate taxes for Bitcoin and digital-currencies
TERA
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March 09, 2014, 04:33:26 AM
 #24

This year it's easy, because I started bitcoin in 2013. I know I made an initial deposit of $X and at the end of the year I had $Y and I subtract them. Otherwise I wouldn't know what the hell to do because I've not only done bitcoin trading but arbitrage, altcoin trading, and altcoin arbitrage, used about 8 exchanges, and half of the exchanges I've used have closed.

Agree, if you started in 2013 and paid one currency, bought Bitcoin, sold them all, got your USD back.

But if you have some Bitcoin left, you need to be calculating their cost basis for next year. If you sold any then bought them back at all, traded alt-coins,  it will have changed.
I wasn't all in USD at the end of year. I had some bitcoin, so I was able to subtract the unrealized gains I had on those bitcoins, and they will apply to next year. I think I avoided a tax bracket this way.
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