Last year, cryptocurrency taxes were the ‘party spoiler’ that affected all Bitcoin and altcoin transactions. The industry has witnessed a set back from the taxman’s crackdown on mining, exchanges, spending, training, etc. The IRS has started wielding its mighty arm on investors and it you don’t want to be caught, you better file your returns.
Why File Taxes if you invest in Crypto-Assets and Digital Currencies?
- The IRS views digital currencies, bonds, stocks and other investments as property.
- Cryptocurrency trade is considered the same as fiat.
- Cryptocurrencies are used in the purchase of items and so, it can be taxed.
- Cryptocurrency activities such as exchanges, receiving payments, converting, mining and ICOs attracts taxes.
If you’re not sure where to begin, below we’ve listed our top five sources to help with crypto tax calculations.
You shouldn’t have to hire expensive accountants or keep meticulous records and receipts in order to pay their taxes. TaxToken aims to make filing easier. TaxToken leverages artificial intelligence on blockchain to update accounting practices. The TaxToken team claim that they were able to identify the lingering tax filing issues in cryptocurrency, they observed that the traditional tax approach was outdated, tedious, expensive and time consuming. They also noticed that these shortcomings were resulting in defaults in the standard deduction and so, people weren’t taking full advantage of the tax code to maximize refunds.
Taxtoken’s aim is to offer a platform that ensures that you pay only what they owe – without having to waste a lot of time or effort figuring it out. TaxToken will auto fill your tax forms through its integration with exchanges, smart cards, wallets and mobile phones. The entire tax filing process can be confusing but with the aid of blockchain these complications will be eliminated or at the very least, minimized.
Tax token aims to create a platform that offers a precise, secure and automated tax prep process.
Crypto Tax Prep is an accounting and tax preparation service found at CryptoTaxPrep.com, which was designed to cater specifically to the cryptocurrency industry. It aims to become the world’s first Fintech Company willing to offer both Bitcoin and crypto accounting and tax preparation. They claim to be the most knowledgeable crypto and Bitcoin tax preparation establishment in the US and are certified by US based Certified Public Accountants (CPAs).
Their client base spans across different fields including early adopters, casual investors, miners and businesses that accept cryptocurrency. Crypto Tax Prep prepares taxes for users located in all the states in the US and they are making sure that you only pay what you have to pay.
Benefits of Crypto Tax Prep Services include;
- Guaranteed accuracy
- Completely free audit assistance
- Year round support
- You pay the least possible amount as tax
- You stop worrying if your taxes were properly filed
- Save time and stress
- Enjoy expert CPA services
They have several years of experience across different digital currencies some of which include Bitcoin, Bitcoin Cash, Bitcoin gold, zCash, EOS, Steem, Litecoin, Dash, Ripple, ether and many other altcoins. Basically with cryptotaxprep, you get all the good stuff with none of the attendant problems.
Low taxes, less time and less stress – what more could you ask for?
Visor.com is an online tax filing and consultancy platform with very vast client base, owing to the fact that it has a flat annual fee, is run by experienced tax advisors and has an indisputable reputation. Visor is an amazing choice for calculating cryptocurrency taxes. It even intends to soon add a service that’ll help you file your taxes with very little effort on your part!
Recently, Visor designed a tab aimed at helping crypto investors comply with the IRS and if you’ve used it, you’ll agree that everything about it is straightforward.
Visor helps its users in 6 simple ways which include:
- Calculating cost basis
- Ensuring that everything relating to accounting is handled by skilled and experienced accountants.
- Filing state and federal taxes professionally
- Handling the different digital currencies and their distinguishing transactions
- Rewarding investors
- Starting an annual plan and IRS audit protection.
To register, you have to answer a few questions and indicate the nature of your business after which you’ll be required to upload some documents. Visor then files the tax document on your behalf.
Right now, this platform charges a one-year flat fee of $399.
Just as the name implies, Bitcoin Taxes is an amazing tool designed specially to assist users calculate capital gains and losses for Bitcoin. Many people are unaware of the cost-bases of every BTC they own or the exact amount they made in profit and this data is very important. This is what Bitcoin Taxes focuses on and the best part is they do this completely free of charge!
Some major features of Bitcoin Taxes include importing mining income, support for major world currencies and importing trade histories from multiple exchanges. Bitcoin taxes also offers accounting packages and the services of tax professionals for users who are searching for more advanced Bitcoin tax solutions. They also support many altcoins including Dodgecoin and Ethereum.
It can be really difficult to keep track of all your investments whether you’re a swing trader, day trader or just a HODLer – it can be such a nightmare. If you’ve been looking for a place to read up on digital currencies and everything there is to know about the taxes associated with them, then you are in luck. Cryptocurrency facts is a site that has everything you need to know about crypto taxes, it also covers all aspects of crypto taxes including:
- Cryptocurrency and Business
- Cryptocurrency Mining and Taxes
- Forms to file for cryptocurrency
- When to pay taxes on crypto gains
- Form used to calculate gains and losses
- How capital gains and losses work
- Even if I have never cashed out, do I owe taxes on cryptocurrency?
- How capital gains tax relates to ordinary income and the progressive tax system:
There are a lot of tax related issues facing coin traders and investors – a major one being non-compliance and the IRS are now wise to this. Avoid these mistakes by taking advantage of any of the tax solutions mentioned above.
If after going through you’re still unsure, it may be wiser to get the services of tax filing and advisory accountants especially when you consider the rigorous and lengthy tax filing process in the US.