Think You Might Owe Taxes on Cryptocurrency Transactions for 2018 - Help is Here

in #bitcoin5 years ago (edited)

Disclaimer upfront. I'm not a tax person, not an account, not a CPA, not a lawyer. But I live in the USA and needed to address my cryptocurrency transactions for tax liability. I reached out to a friend of mine to see what he was doing this year. And, he was kind enough to tell me about BitcoinTax and Cointracking.

Now I'm still researching, so do not take this as a recommendation. I started with BitcoinTax. While they have a free version, it is too limited, so I paid a few dollars for the middle of the road program, I think 5,000 transactions. Way more than I needed. The website has been easy to use and self explanatory so far.

The site, with your permission, will download transactions from various exchanges. Then it parses them, adds key info, i.e. the price of the coin at the time of transaction, and creates easy to understand reports. But what really sold me on this program was that I could send the report info, i.e. my gain and loses, directly to the tax software I've been using since 2003. Yeah, I know, a long time.

Now, I'm still in the evaluation stage, but know that there may be one or two people like myself that tend to wait way too close to the tax deadline, so I wanted to share the information as early as possible. Just in case you needed it.

I suspect there are others needing help with taxes and like myself prefer to do it themselves. Of course, I am still prepared to go to an accountant if it doesn't make sense, but so far so good.

Please share this post and let me know what you think of the programs. Or, if you've found something better.

P.S. The links are not affiliate links, so I make nothing if you sign up.

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Hi
Thank you for writing this very informative article. I think it’s great information. I have upvoted and resteemed.

Thank you @shortsegments. Appreciate the thoughtfulness.

What would happen if you has a bank account in Malta and paid all earnings directly to there.

LOL. Good question @cryptoandcoffee. Now, I'm not a tax person, not an account, not a CPA, not a lawyer, but I think if you live in the USA, you have to report the bank account anyway on the Federal return. If you are in another country, like some place in South Africa, you more than likely have different regulations. Nothing can compete with a competent CPA. Thank you for dropping by. Much appreciated!

I have been looking into it as it is going to become more important going forward. Will let you know my findings as it is a loophole . I think it is legitimate if you have a bank account and maybe a post box as a postal address there.

I wasn't aware of the fact you need to pay taxes over it as well. So... what is the profit of it if it comes to the coin we usually use (you $ me €)?
Sounds helpful wonder if it exists in Holland too (don't think so).

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Always have to start with a disclaimer on this topic. I'm not an account nor a CPA and this is not tax advice. Please seek appropriate counsel for your particular district in the world. OK, that said, in the US it is my understanding that we treat cryptos more like property and therefore they are subject to capital gains taxes here in the US. Different countries are approaching differently and there may be a few countries that are pending direction. When Bitcoin first came out, the infrastructure to track who the Bitcoin went to was just not there. Now, many companies and governments are looking for a piece of the pie and may start investigating Bitcoin and cryptocurrency transactions. So it pays to know your local laws. Thank you for dropping by @wakeupkitty.

I thank you for taking the time to answer.

I doubt our government will invest they just want a big piece of the pie or even better have it out of the world.

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Hi, this post received an upvote from the anti-shitcoin team. Thanks for your contribution.
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Thank you @niel96. Appreciate the vote and restream. It will be nice to get the word out.

@niel96, thank you for posting your results. Glad to see someone else tried the system and liked it. Let's see if anyone else gives it a try. Again, thank you for your efforts.

The reward of this comment goes 100 % to the author guysellars. This is done by setting the beneficiaries of this comment to 100 %.

its is enjoyble

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