Disclaimer: This is not tax advice, and this report does not guarantee this is exactly what you will owe (or not owe). It is a very powerful tool though for tracking your gains and losses with cryptocurrency and I am sure an accountant would be thrilled if you brought these reports to them. Always consult a tax professional before using this for filing purposes!
Cryptocurrency Tax Report on CoinTracking
CoinTracking is a fantastic tool when it comes time to figure out your potential tax liability with cryptocurrencies. They provide reports in multiple formats and allow for a lot of flexibility when running a report. This guide will cover running a basic cryptocurrency tax report on the CoinTracking platform.
Running a Cryptocurrency Tax Report
1. Go to the CoinTracking website and login. They do have a demo version, so you can follow along without signing up if interested.
2. Click on the “Tax-Report” tab
3. Click on the “Open setting and create a new Tax Report” button
4. Set the options for your cryptocurrency tax report. Check out this article on more detail of each individual option. In this example, I am running a tax report for the 2017 tax year (1), which will include all previous trades (2) and use a First-In First-Out (FIFO) accounting method (3). I am calculating the tax and gain (4), but it may make more sense to calculate your gain only and let the accountant figure out the taxable amounts. I’m using a 15% short term tax rate (5), notice they include a few different countries and their potential tax rates. I am setting the long-term tax rate to 10% (6) and leaving the “long-term after” option to 365 days (7). This means it will only consider a trade for the long-term tax rate if I held onto the cryptocurrency for at least one year before selling it.
5. Click the “Generate a new Tax Report now” button
That’s it for running the cryptocurrency tax report, it should now appear underneath the section you had just filled out. Note the values don’t match my example because this is from their demo account, so these were already available. Continue reading for more information on the “Load Report” and “Detailed Calculation” buttons for viewing the report you just generated.
5a. Click the “Load Report” button
This is your Capital Gains report. As you can see, there are a variety of options for exporting it (A). Form 8949, TaxACT, and TurboTax are a few of the options. There is also a nice summary in the bottom right (B) that shows the totals of the current page, filtered entries, and overall report. This should be all the information you need to report your cryptocurrency gains/losses for the tax year.
Note: If you scroll down on this page, there is also an income report, gift/donation report, lost/stolen report, and closing position report. All of these can be exported into CSV, PDF, Excel, and table formats.
5b. Click the “Detailed Calculation” report
This report shows how your capital gains report was calculated. It breaks everything down in each individual sale to show which “pool” the values are coming from. This is an interesting report and might help for tracking down incorrect values that could have been uploaded. Otherwise, you probably won’t use this report much. There is also a summary at the bottom of this report (bottom screenshot).
CoinTracking provides an amazing tool to figure out your potential cryptocurrency tax obligations. If you use an accountant, they will probably thank you quite a bit for providing your trade details in one of these formats. Please consider using the referral link (10% discount, even if you wait to upgrade from the free account) if you don’t have an account with CoinTracking yet!