Crypto tax reporting can be a complicated and time-consuming process, with people usually making transactions across multiple different platforms and confusion over crypto tax policies.
Nonetheless, it’s imperative that people get their taxes done on time to avoid penalties and future repercussions. When completing their crypto taxes, people have a few different options available to them. These include calculating and filing their taxes themselves, hiring an accountant, or using a specialized crypto tax reporting platform.
One such crypto tax reporting platform is CryptoTrader.Tax, which describes itself as “the easiest and most reliable way to prepare your cryptocurrency taxes.” To find out if it lives up to these claims, I tested out the platform and have provided an in-depth review for our readers below.
Import Your Trades From Any Exchange
One of the complexities of trying to calculate your crypto taxes alone is handling the vast amount of transactions made across multiple crypto exchanges. A dollar value for each trade must be established in order to calculate any gains or losses accurately. Therefore, when dealing with a lot of trades, this becomes a long and tedious task, with errors often made.
CryptoTrader.Tax allows you to quickly import your trades from any exchange by either using the API import tool or uploading your trade history files. This will enable you to efficiently manage all of your trading data on one specialized tax platform.
Also, when you upload your trades, CryptoTrader.Tax automatically establishes a fair market value and cost basis for them using historical data. This dramatically increases the speed of calculating your taxes and significantly reduces the risk of errors.
On top of your trade data, you can also add other crypto income from things like airdrops, gifts, and mining.
Generating a Tax Report
After importing all of your data, you then review your trades before generating your report. For each tax year, CryptoTrader.Tax generates an Audit Trail Report, Cryptocurrency Income Report, Short & Long Term Sales Report, IRS Form 8949, and an End of Year Positions Report.
CryptoTrader.Tax supports the FIFO, LIFO, and HIFO accounting methods, meaning people from almost anywhere in the world can use this platform for their cryptocurrency taxes. Users can also have their gains and losses calculated in any fiat currency.
When calculating your taxes, CryptoTrader.Tax uses the same methods that tax professionals use. It ensures that you are paying the correct amount and not overpaying on your taxes. CryptoTrader.Tax has built-in tax-loss harvesting tools to help you reduce and offset your capital gains.
The platform also allows you to import your capital gains and losses directly into the online or desktop versions of TurboTax and other tax platforms. CryptoTrader.Tax is Level 1 PCI compliant and uses SSL encryption to ensure that your data on the platform is secure.
CryptoTrader.Tax charges for reports as a one-time payment per tax season. It has a tiered pricing structure in place, meaning the more trades you made during the tax season, the more you pay.
This allows those with a small number of trades to pay a minimal amount, and even for those who require the ‘Unlimited’ tier, the pricing is still very competitive. When you have purchased a report, you can make unlimited revisions to it for that year. CryptoTrader.Tax’s pricing options are as follows:
Users can pay for CryptoTrader.Tax using a Visa, MasterCard, or American Express credit/debit card. However, it’s important to understand that you only have to pay for CryptoTrader.Tax when you are ready to generate your tax report. This means you can create an account, import your data, and review your transactions for free.
CryptoTrader.Tax offers a full money-back guarantee on any purchases. That means if you are not satisfied with your report, you can get a full reimbursement as long as you request it within 14 days of purchasing.
How to Create an Account
It’s quick and easy to create an account at CryptoTrader.Tax, with the option to create either an Individual Account or a Tax Professional Account. To create an Individual Account, users simply need to add an email address and create a password. Tax professionals need to provide their name, email, and create a password.
This process takes seconds, and when you have created your account, you can immediately start integrating the exchanges you use, uploading your data, and using the platforms different tools. You do not need to provide any credit card or payment details when creating an account.
CryptoTrader.Tax allows anyone to easily manage and calculate their crypto taxes at a reasonable price. What could take hours or even days can be done in minutes on the CryptoTrader.Tax platform. On top of that, CryptoTrader.Tax ensures that your Bitcoin tax report is accurate and compliant, mitigating the risk of mistakes and overpaying on your crypto taxes.
CryptoTrader.Tax’s CEO David Kemmerer was even a guest on Anthony Pompliano’s ‘Off the Chain’ podcast, where he discussed the complexities of cryptocurrency taxes. For those who would like to listen to this interview, you can find it here.
If, at any point, a user needs assistance during the tax reporting process, CryptoTrader.Tax has a professional support team in place that will get your queries resolved quickly. Overall, CryptoTrader.Tax is an excellent choice for both individuals and tax professionals who are looking to make the tax reporting process more efficient.
XRP Entered Key Accumulation Zone, Eyeing A Move Towards $0.28
XRP entered key accumulation zone as the price was in a lackluster action as of late with both sellers and buyers being unable to garner clear control over the near-term trend, hovering around $0.20 as we are reading more in the latest Ripple price news.
The consolidation came about as a result of the Bitcoin movement since it was struggling to gain any clear momentum as the price oscillates between the low region of $10,200 and the higher of $11,200. Because XRP entered key accumulation zone moving closely with BTC and the rest of the market, where it will head next will depend largely on whether the entire market will recapture the bullish momentum. With that being said, one analyst noted that the cryptocurrency is consolidating above the long-term base of support and says that this support will ultimately provide another major boost and will allow the price to start rallying towards $0.28 next.
If the XRP price moves to $0.28, it will mark a 20% climb from where it is trading now. at the time of writing, XRP is trading up over 3% at a current price of $0.24 which is around the same price level where it was trading over the past few days. The price dropped as low as $0.22 before it was able to find any major support with the bulls stepping up and making gains on the strong uptrend where this level was reached.
Bitcoin helped in the rebound as the benchmark cryptocurrency pushed from $10,200 to highs of $10,800 created a tailwind which lifted most of the assets higher. In order for XRP to continue ascending in the near-term, the bulls will have to continue defending against further losses. While speaking about where he expects XRP To go further, one analyst explained that the recent reaction to $0.22 shows how strong the base of support is for this cryptocurrency:
“XRP: The market is overly bearish, but the markets are actually on impressive support zones to accumulate some positions. Similar to XRP. Patience pays. Looking at some longs here, which could be towards $0.28 first in the next month.”
How altcoins such as XRP will trend in the upcoming weeks will depend on Bitcoin. The number one cryptocurrency has to be able to see sustained momentum if it reaches the $11,000 resistance.
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Bitcoin price recovers, resistance at $11,000
The Bitcoin price is on a recovery path after bouncing off from a support zone. The immediate resistance is at $11,000 but $12,500 of Sep 2020 highs is ideal.
- The Bitcoin price recovers, resistance at $11,000
- Russia proposes a bill which categorizes Bitcoin and crypto as property
- Binance banned in Russia
- A bill in Israel may see Bitcoin and crypto classified as currencies
The Bitcoin price is bouncing back, snapping back to trend, reversing blips of early this week. From trackers, the BTC/USD pair has pared losses but is galloping ahead of ETH.
Crypto as Currency?
Amid optimism is news from Israel.
According to a local report, four members from Knesset–Israel’s legislative body, submitted a bill on Sep 22. If adopted, the rule will significantly change the way cryptocurrencies are taxed.
Specifically, the bill seeks to change digital assets’ classification from property to currency under the country’s Income Tax Ordinance.
This shall lift the taxation burden of coin holders who currently pay 25 percent as tax on capital gains. Should Bitcoin (and cryptocurrencies) be deemed as currencies, capital gains will drop to 15 percent.
The State of Israel can be among the leaders in the field of digital currencies. If only it recognizes the use of the blockchain as a currency for everything. It is precisely in this period when the economic future is unclear It is possible to promote digital payment options due to the social distance that has been forced on us.
Russia’s Strict Proposal
In Russia, a radical proposal by the Ministry of Finance was tabled to the State Duma—the parliament, on Sep 24. Controversial, the Ministry of Finance astonishingly considers cryptocurrencies as tools of money laundering and terrorist financing.
Consequently, it proposes holders to submit any holding above $1,300 or (100K Rubles) to tax authorities.
Failure attracts a jail term of up to three years. The softer option will be forced labor as punishment. The only good news this proposal bears is the classification of Bitcoin and crypto as property.
However, this is to pave ways for tax authorities who can proceed to charge capital gains.
On the same day, Binance—the world’s largest cryptocurrency exchange, was banned by the Roskomnadzor.
Baffling, the agency says the site’s homepage promotes the buying and selling of Bitcoin. It is the second time in three months the agency is blacklisting Binance.
Bitcoin Price Prediction
The Bitcoin price is swinging between bearish and neutral judging from candlestick arrangements and technical indicators.
In the last day of trading, BTC has recovered losses against the USD and is flat. However, it is outperforming ETH in the daily and weekly charts.
Candlestick arrangements in the daily chart suggest strength in the immediate term.
There is a double bar bullish reversal pattern from the 61.8 and 78.6 percent Fibonacci retracement level of July to September trade range.
Since prices are back above the middle BB, bulls are likely to edge higher in the immediate term.
Strong liquidation levels is expected at $11,200 and $11,500. This is Sep 3 highs. A sharp, high-volume break above this level will nullify bearish attempts of Sep 1 and 2 and probably paves the way for bulls to retest $12,500.
BTC/USD Technical Indicators
- Support lies between $10,100 and $10,400
- Resistance is at $11,000 and $11,500.
- Most traders (88 percent) are bullish from sentiment analysis.
Disclaimer. The information provided is not a trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Another record-breaking WBTC mint – Bitcoin demand on Ethereum to grow?
On 25 September, crypto-trading firm Alameda Research minted the largest-ever quantity of Wrapped Bitcoin [WBTC]. News of the development was shared on Twitter by WBTC, with the tweet going on to note that the mint was worth 2,317 BTC, equivalent to $25 million.
In fact, Alameda Research beat the previous record set by Singapore-based Three Arrows Capital. Interestingly, Three Arrows Capital completed the single largest issuance of new WBTC tokens by any merchant after minting 2,316 WBTC on 24 September through Bitgo.
Before Three Arrows, Alameda Research had set the previous record with most tokens issues in a single mint. As it reclaimed its throne, Sam Bankman-Fried, Founder of Alameda Research, challenged the CEO of Three Arrows Capital to keep the friendly competition going.
— SBF (@SBF_Alameda) September 25, 2020
Despite the back and forth, Alameda Research has been leading the mint and issuance of WBTC with 37,609 tokens. On the contrary, others like CoinList and imToken followed with 28,162 and 8,991 WBTC, respectively.
Bitcoin’s demand on DeFi has been growing, including other platforms. According to data provided by Dune Analytics, the supply of WBTC has shot up by over 13,000% since January and has remained the most significant among other synthetic forms of BTC. As per Arcane Research, WBTC saw the most BTC locked, holding 67% of the total amount of Bitcoin represented on the Ethereum blockchain. RenBTC followed at the second position, with about 24% market share and HBTC with about 4%.
Bitcoin accounts for almost 5% of the TVL in DeFi now, indicating a rise in the share of DeFi capitalization represented by BTC which itself has risen by 150% in the past three and a half months.
At press time, DeFi Pulse was reporting the total BTC locked in DeFi to be at 125k. This was after the slump witnessed on 21 September, a slump that took the value of BTC down, along with the BTC locked in DeFi. The value on Monday had dipped to 82.16k, but quickly jumped back and, at the time of writing, was noting a peak.
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