What Are The Top 5 Sources To Help With Crypto Tax Calculations?

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.

Taxtoken

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able to identify the lingering tax filing issues in cryptocurrency, they observed that the traditional tax approach was outdated, tedious, expensive and time consuming.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.

Cryptotaxprep

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

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.

Bitcoin Taxes

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.

 

Cryptocurrency Facts

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:

To conclude

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.

22 Comments

  • Emma April 2018 - Reply

    Very informative! As far as I know, spending Crypto Tax may generate capital gains or losses. This could be a short or long-term capital gain subject to different rates which is depending on the holding period.

  • Harry Thomas April 2018 - Reply

    That’s true that this saves time and stress! I like it due to it speed of transaction. We can send money anywhere and to anyone in a matter of minutes.

  • Kevin April 2018 - Reply

    I’m focusing my efforts on learning how to get the most out of my investment and I don’t have time to deal with taxes. I will take a look at Visor because I really don’t want to have to deal with these things and the yearly fee sounds ok. Thanks for mentioning Visor.

    • Glen Mikkelsen April 2018 - Reply

      Too bad taxes are a part of the game huh? Being able to leave that to someone else to worry about for you is a bonus when dealing with cryptocurrencies and other investments where the value is changing on a daily basis.

  • James Beam April 2018 - Reply

    I bet this is one topic that most interested in cryptocurrency are not even thinking about. The market moves so much, all people can think about is making money. What about when the tax man comes? This is a very good list. I checked through all of the options and they all seem to offer good services!

  • Caroline May 2018 - Reply

    Those dreaded taxes, right? I mean, am I the only one that hates their guts? I don’t know which of these sources I will end up using but I will use one for sure. I guess I’ll go with the one that looks the easiest to use.

    • Samantha June 2018 - Reply

      Tell me about it! I hate having to do my own taxes and thus I haven’t been doing this for some time now. Been using Taxtoken instead and now I don’t even think about it too much.

  • Vera Lyons May 2018 - Reply

    Most people prefer to get help on their taxes so there are no mistakes, that and filing taxes is time-consuming and just plain boring. It’s good to know there are companies that cater specifically to cryptocurrencies and that will get the job done.

  • Rachel Alp May 2018 - Reply

    Cryptocurrency and tax time stress me out! It’s really important to avoid mistaking mistakes when determining what you owe. I’ll need to take a look at these solutions for help with that. Thanks for sharing.

  • Charlotte Douglas June 2018 - Reply

    I am wondering how many different types of cryptocurrencies have even thought about the tax side of things for the consumer. Every time there is another way to make a million bucks on the internet, the taxes are the first thing that is forgotten.

  • Frederica Rivera June 2018 - Reply

    At least a couple of these are all-in-one solutions. Not that you have to sign up for more than one only to get all the features that you really want. Thanks for the write up, these are all very helpful!

  • Ethan Martinez July 2018 - Reply

    Great information , I will be sure to use one of these. I would not want the tax man having any reason to be unhappy with me.

  • Oliver Williams July 2018 - Reply

    There are many ways to watch your back but I know I can rest easy with crypto tax. Good article thanks for sharing

  • Ben Amstutz July 2018 - Reply

    These are good things to keep in mind! Thanks for the warnings about paying taxes.

  • Josh Sprunger July 2018 - Reply

    Taxes are always a stressful situation. Hopefully these will make terms easier. Thanks for this post!

  • Keiron Armstrong August 2018 - Reply

    So much confusion around taxes and cryptocurrency I think. I hear it all the time from people. These tools would really help with making some calculations to give you an idea of your tax liability. I’ll be passing this article around to some friends.

  • Kean Bowers August 2018 - Reply

    I’m always so confused when tax season rolls around. Fortunately my CPA is knowledgeable, but I’d like to do calculations and estimates on my own to save money. Cryptotaxprep looks to have a ton of features. I’ll be checking them out!

  • Sania September 2018 - Reply

    These are all great options! Thanks so much for this great information

  • Mylee September 2018 - Reply

    It is a confusing topic when its your first time around the block! I can remember those days!

  • Catherine Bent November 2018 - Reply

    It really is amazing how many different companies can be started that deal with all of the things that cryptocurrency brings to the market. I wasn’t even thinking about taxes related to bitcoin, but that is a very good conversation to have!

  • Marie Libbey November 2018 - Reply

    It only makes sense that you have something lined up for any income you have in the bitcoin world, but what if you are litterally talking about decimals of a dollar? Is it really still that important?

  • Raquel Billings November 2018 - Reply

    Taxes are never going to be something that you can understand without some kind of direction from an expert. I feel that if there are services out there that make it easier to understand it, then it is worth the money for the help.

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