CoinTracking — Simply the Best
Following on the referral arrangement with @CryptoTaxGirl announced in April, we have a nice supplement to reinforce our commitment to directing our users to the highest quality information and supplemental services. We are now able to also offer an affiliate link which provides users a 10% discount when they create an account on CoinTracking! CoinTracking not only allows you to easily import and calculate a huge variety of trade data, it also is capable of generating a number of different tax reports.
Navigating a New Landscape
In order to do your cryptocurrency taxes, you first need to have a complete record of all the cryptocurrency transactions you initiated during the previous tax year. CoinTracking.info greatly simplifies the process of compiling this data.
Here’s everything you need to do to create a tax report with CoinTracking.info.
Step 1: Create an account
Go to CoinTracking.info and click the Login / Register button on the top right hand side of the screen. Then, create a username and type in a password and email address.
Step 2: Import your cryptocurrency trading data
The easiest way to import your trading data is by linking all your cryptocurrency exchange accounts to your CoinTracking.info account. (If the exchange you use doesn’t have a public API, you import a CSV file of your trading data instead.)
First, select the Enter Coins drop-down menu. Then, open Exchange Imports (API) and pick the exchange you want to link to CoinTracking.info.
Next, you’ll need to log into your cryptocurrency exchange account and create an API key. You’ll be able to find the option to create an API key in the settings menu of whatever exchange you use.
After you’ve finished creating the API key, copy and paste your API key and API private key (sometimes called an API secret) into the appropriate blanks.
After your first data import is complete, repeat the process if there are any other cryptocurrency exchanges or wallets that you need to add.
Step 3: Generate your crypto tax report
Once you’ve imported all your data, it’s time to generate your tax report.
Click Tax Report from the main menu, then click the red Open settings and create a new Tax Report button. You will see this:
The accounting method you use will determine the way that CoinTracking.info determines the cost basis of your cryptocurrency assets. The IRS accepts several different accounting methods. However, once you choose a method, you should stick with it. (If you’re having trouble deciding which method to use, schedule a free consultation with Founder’s CPA.)
The short term and long term tax rates you’ll use will depend on how much money you made during the last tax year. If you reside in the US, use the information provided below to select the appropriate tax rates:
Long term capital gains rates for 2018
Short term capital gains rates for 2018
Step 4 (Optional): Export your crypto tax report and generate IRS form 8949
The data contained in your CoinTracking.info crypto tax report can be exported to a number of different software programs, including TaxACT, TurboTax, Drake and others. You can also print out IRS form 8949, which is the form you need to submit with your tax return to report a capital gain or loss.