Bitcoin Taxes is a great platform to help keep track of your cryptocurrency trading for tax purposes. They have been around for a while and offer some nice features to make it an effortless process. The pricing is also very good, and they do offer a free version.
This review will cover the important aspects of Bitcoin Taxes and how it can make your life easier when tax time comes around. Please consider using my referral link if you choose to sign up!
Exchange and Wallet Tracking
Bitcoin Taxes is flexible when it comes to tracking transactions from wallets and exchanges. The categories for transactions are Trading, Income, Spending, Opening, and Addresses. Each are outlined below:
The Trading section allows for manual entry of trades, importing reports from exchanges, and manual entry of fees. They support some exchanges for API importing, otherwise you can upload a report generated from the exchange into Bitcoin Taxes. They do have an option to import a generic CSV file, so you can upload a report from an exchange not on the list. It needs to be in the format Bitcoin Taxes accepts though.
The Income section allows for manual entry of income, importing reports from exchanges, and entering addresses that are used for mining income. It treats all incoming deposits of the addresses you list for mining as income. This is nice if you have specific addresses for mining rewards. The screenshot below shows the manual entry fields and import options.
The Spending section allows for manual entry of purchases and a few options for importing from wallets, Coinbase, and a generic CSV file. The screenshot below shows the available fields and import sources that can be used.
The Opening section is used for transactions that happened prior to the current tax year. It only allows for manual entry or importing of a generic CSV file. The screenshot bellows shows the available fields and formatting instructions for the CSV file.
The Addresses section is used to track transactions going in and out of wallets. They also offer the option of connecting your Coinbase wallet, so those transactions can be imported automatically. The screenshot below shows the options for this section.
The focus with Bitcoin Taxes really is the tax tracking aspect, so I wouldn’t use this to also track your portfolio. While they provide a couple of charts, it’s hard to get a real in-depth overview of your portfolio. However, there are a lot of other applications that do that, so it’s not a bad thing. If you are interested in an all-in-one tracker, check out my CoinTracking review!
One excellent feature of their tax tracking is the ability to see the impact of using different accounting methods in one quick glance. They also allow you to use different accounting methods for different assets, as well as highlight the method with the lowest tax in green. The screenshot below shows the different accounting methods they allow. Note that they also allow for using a like-kind exchange method, which means it would not count a crypto -> crypto trade as a taxable event.
For reporting, they offer reports in Form 8949, TaxACT, and TurboTax TXF formats. They also provide an income report. A screenshot of the capital gains report is below.
A handy resource is their tax accountants section. They provide a page for finding a tax accountant that’s versed in cryptocurrency taxes. This is a great benefit and is highly recommended. If you are an experienced tax accountant in the cryptocurrency space, they have a page that allows you to add your contact details. It is a great place for some exposure! They currently have accountants listed for the United States, Europe, Canada, and Australia.
The pricing is very cheap for what they offer. If you don’t do a lot of trading, the standard free version may work fine. It does seem like they only allow tax reports for current tax years to be produced for premium members though, so you will likely need to upgrade at some point. Below is a screenshot showing the pricing of their premium levels for ‘Individuals’ and ‘Traders’.
Bitcoin Taxes is a great platform for those that just need help with taxes and aren’t worried about portfolio tracking too. For a portfolio and tax tracker, check out my review of CoinTracking. The flexibility of adding transactions makes it easy, and it’s nice that they include a directory to contact an actual accountant who has experience in this space. The IRS and other government bodies will be cracking down on this stuff, so be sure to stay ahead of the curve! Please consider using my referral link if you choose to sign up!