Cryptocurrency Tax Blog

Demystify Crypto Taxes

The Ultimate Guide to Cryptocurrency Tax Loss Harvesting

Tax loss harvesting is one of the most effective ways to reduce your tax bill for the year. This guide outlines what tax loss harvesting is, how you can use it to reduce your bitcoin and crypto tax liability, and how you can use CryptoTrader.Tax’s Tax Loss Harvesting tool to automatically detect your greatest opportunities for tax savings.

Guides

November 25, 2019

Canada Cryptocurrency Taxes - The Complete 2019 Guide

Canada’s cryptocurrency tax policy is receiving more attention as Bitcoin and other cryptocurrencies have gained significant popularity over the past few years. This guide discusses how cryptocurrencies are taxed in Canada and provides tips on making tax compliance easy and fast for citizens through the use of cryptocurrency tax software.

Guides

November 20, 2019

IRS Clarifies Crypto Tax Treatment of Like-Kind Exchange, Airdrops, and FBAR Reporting

Key individuals and regulators in the crypto tax space clarified a variety of topics yesterday (Nov. 13, 2019) at the AICPA national tax conference in Washington, DC. Topics of clarification included the tax treatment around 1031 Like-Kind exchange, airdrops, specific identification, and FBAR reporting requirements.

Crypto Taxes

November 14, 2019

How Taxes Work - Crypto Loans, DeFi, and Margin Trading

Cryptocurrency loans contain some unique features and have different tax implications separate from simply buying, selling, and holding cryptocurrency. This guide discusses the tax implications for these new types of cryptocurrency financial services.

Guides

November 5, 2019

150 Million Taxpayers Will Have to Answer This Cryptocurrency Question on New IRS Tax Form

Two days after the IRS released their updated and highly anticipated new cryptocurrency tax guidance in October of 2019, the agency circulated a draft of the new 1040 Schedule 1 for the upcoming 2019 tax season. On this new tax form, which will be filled out by all taxpayers in one way or another (aprox. 150 million), there is a check “yes” or “no” question at the very top:

Crypto Taxes

October 30, 2019

US Residents Losing Access to Poloniex - Here’s How You Should Prepare

Poloniex recently announced that it will be shutting down US operations and no longer provide services to US users. This guide discusses how you should prepare from both a trading and a tax reporting perspective.

Crypto Taxes

October 18, 2019

How To Do Your KuCoin Taxes - Building Your Crypto Tax Forms

When it comes to doing your KuCoin taxes and building out your required KuCoin tax forms, a number of challenges arise. This article discusses these issues and explains the easiest way to build out your required KuCoin and cryptocurrency tax forms.

Guides

October 15, 2019

Breaking Down the New IRS Cryptocurrency Tax Guidance

For the first time since 2014, the IRS has issued new cryptocurrency tax guidance. This guide breaks down everything you need to know.

Crypto Taxes

October 10, 2019

How To Do Your Bittrex Taxes - Building Your Crypto Tax Forms

This article explains the easiest way to build out your required Bittrex and cryptocurrency tax forms.

Guides

October 3, 2019

I Paid For Something With Crypto - How Do I Do My Taxes?

Paying for a good or service with crypto is a taxable event and you realize capital gains or capital losses on the payment transaction. These gains and losses need to be reported on your taxes.

Crypto Taxes

October 1, 2019

I Created My Cryptocurrency Tax Report - Now What?

This article breaks down the next steps for including your crypto tax reports with your entire tax return. As you will see, you have a few different options depending on how you typically file your taxes every year:

Guides

September 29, 2019

How are Cryptocurrency Hard Forks Taxed?

In this guide, we explore cryptocurrency forks and the current best practices for handling them from a tax perspective.

Crypto Taxes

September 24, 2019

How To Do Your Kraken Taxes - Building Your Crypto Tax Forms

This article explains the easiest way to build out your required Kraken tax forms. Many traders use Kraken because it operates and complies within the strict regulatory environment present in the United States.

Guides

September 20, 2019

CryptoTrader.Tax for Tax Pros: Calculating Cryptocurrency Capital Gains and Losses For Clients

Calculating cryptocurrency gains and losses to report on Form 8949 can be an excruciating task for accountants. CryptoTrader.Tax is a platform built to automate the entire crypto tax reporting process and make your life as an accountant a whole lot less painful.

Guides

September 16, 2019

How To Do Taxes For Your Bitcoin Gains

This guide walks through exactly how cryptocurrencies like bitcoin are treated from a tax perspective. It will also demonstrate how software tools can be used to automate the entire tax reporting process.

Crypto Taxes

September 5, 2019

IRS Notice CP2000 for Cryptocurrency - What Do I Do?

This guide walks through CP2000, how cryptocurrency is treated for tax purposes, and what you can do about the CP2000 notice.

Crypto Taxes

August 16, 2019

IRS Letter 6174 & 6173 for Cryptocurrency - What Do I Do?

The IRS is beginning to crackdown on individuals who transacted with Bitcoin and other cryptocurrencies but did not report it on their taxes. 

Crypto Taxes

July 18, 2019

Australia Cryptocurrency Taxes - The Complete 2019 Guide

This guide discusses how cryptocurrencies are taxed in Australia and provides tips on making compliance easy for citizens.‍ Australia’s cryptocurrency tax policy is receiving more focus after the ATO announced its plans to create a special task force focused on tackling cryptocurrency tax evasion.

Guides

July 11, 2019

How To Do Your Gemini Taxes - Building Your Crypto Tax Forms

When it comes to doing your Gemini taxes and building out your required Gemini tax forms, many challenges arise. This article dives into the issue and explains the easiest way to build out your required Gemini tax forms.

Guides

July 9, 2019

The Cryptocurrency Tax Problem - Why Exchanges Can’t Provide Users With Accurate Tax Documentation

Cryptocurrency exchanges can't provide users with accurate tax documents. This guide breaks down why that is and discuss a solution

Crypto Taxes

June 27, 2019

Reporting Stolen or Lost Cryptocurrency for Tax Purposes

Losing crypto from exchange shutdowns, wallet hacks, scams, and other events are unfortunately common in the world of cryptocurrency today. From a tax perspective, these events are not all treated the same, and it largely depends on the specifics of the circumstances. This guide walks through the most common forms of theft and crypto losses and the possible ways to treat them from a tax perspective in the U.S.

Crypto Taxes

June 19, 2019

US Residents Losing Access to Binance - Here’s How You Should Prepare

Binance recently announced that it will block all cryptocurrency exchange services to users in the US in the future. This guide describes how you should prepare for the loss of access from both a trading and a tax compliance perspective.

Guides

June 17, 2019

How to Handle Your Client’s Cryptocurrency Tax Forms

Many tax professionals are having to learn about the world of cryptocurrencies and how they are taxed as their clients have increasingly started to invest, trade, and transact in the digital asset.

Guides

June 10, 2019

How To Do Your Binance Taxes - Building Your Required Crypto Tax Forms

When it comes to doing your Binance taxes and building out your required Binance tax forms, many challenges arise. This article dives into the issue and explains the easiest way to build out your required Binance tax forms.

Crypto Taxes

May 31, 2019

How to Import Cryptocurrency Trades into Drake Accounting Software

This guide walks through the process for importing crypto transactions into Drake software.Drake accounting software is a widely used platform for tax professionals preparing tax returns on behalf of their clients. With the growth in popularity of bitcoin and other cryptocurrencies, many tax professionals find themselves wondering how to import their clients crypto transactions into the platform.

Guides

May 22, 2019

How is Cryptocurrency Taxed?

Cryptocurrencies like bitcoin and ethereum have grown in popularity over the past five years. This article walks through how cryptocurrency is taxed and what you need to understand so that you can stay compliant

Crypto Taxes

May 13, 2019

The Ultimate Guide to API Access for your Crypto Exchange Accounts

Application program interfaces (API’s) provide a way for one system to interact with another. In the case of cryptocurrency, API’s are often used as a way to interact with cryptocurrency exchanges. Many complementary businesses and tools have been built allowing users to connect to these exchange API’s like portfolio trackers, crypto trading bots, tax software tools, and many more.

Guides

May 9, 2019

How to Create Your First Tax Report with CryptoTrader.Tax

This guide walks through how to create your first tax report within CryptoTrader.Tax. To create an accurate tax report, CryptoTrader.Tax needs your historical buys, sells, and other transaction data from every crypto exchange you have used. Without all of your transaction data from all years of transacting with cryptocurrency, the application will not have the necessary information needed to create reports.

Guides

April 29, 2019

Mailing in form 8949 for e-Filing cryptocurrency traders

Depending on how many cryptocurrency trades you made during the year, CryptoTrader.Tax may automatically consolidate your 8949 form into a single line. This is in accordance with section 2 of the IRS 8949 instructions, and will happen for those that have many trades (see example of consolidated 8949 below).

Guides

April 22, 2019

How to File Your Bitcoin and Crypto Taxes with TaxAct

You can easily file your bitcoin and crypto taxes with popular tax filing software TaxAct by importing your crypto tax reports from CryptoTrader.Tax. This guide walks through the step by step process, so that you can quickly file your cryptocurrency transactions.

Guides

April 19, 2019

Cryptocurrency Tax Calculations - FIFO, LIFO, HIFO, and Specific ID

FIFO, LIFO, and HIFO costing methods explained. The new 2019 guidance officially declares that specific identification methods like LIFO (last-in first-out) or HIFO (highest-in first-out) can be used provided that you can specifically identify particular units of cryptocurrency.

Crypto Taxes

April 17, 2019

The Best Companies for Crypto and Bitcoin Loans

Bitcoin loans are becoming popular amongst crypto investors who are looking for liquidity without having to sell their crypto. Using crypto as collateral is a great way to do things like buy a house, fund a business, or pay off high-cost debt. Additionally, there can be tax benefits to borrowing crypto

Tools

April 11, 2019

How to Handle Cryptocurrency Mining on Your Taxes

Cryptocurrency received from mining is treated in two ways for tax purposes.This article breaks down each of these two taxable events and explains the implications of reporting your crypto and bitcoin mining transactions on your taxes.

Crypto Taxes

April 8, 2019

When Do You Owe Taxes on Your Bitcoin and Cryptocurrency?

This article breaks down taxable events and explains when you do or do not owe capital gains tax on your cryptocurrency transactions.

Crypto Taxes

April 4, 2019

Why Coinbase Can’t Provide Accurate Tax Information to Users

This article breaks down why Coinbase taxes are so problematic and often times completely inaccurate for users

Crypto Taxes

March 20, 2019

6 Hacks to Decrease Your Crypto Tax Liability

This article walks through six strategies that can be used to decrease your crypto tax liability

Crypto Taxes

March 10, 2019

The Top 5 Mistakes Made When Doing Crypto Taxes

A list of the most common mistakes that we see made when doing crypto taxes

Crypto Taxes

February 18, 2019

The Ultimate Crypto Tax Checklist - Everything You Need to Properly File Your Cryptocurrency Taxes

This checklist runs through everything that you need in order to easily complete your crypto taxes.

Tools

February 8, 2019

How To File Your Cryptocurrency Taxes with TurboTax

This article walks through the process of filing your cryptocurrency taxes through the online version of TurboTax

Guides

January 19, 2019

TurboTax partners with CryptoTrader.Tax to offer Bitcoin and Cryptocurrency tax services

Turbotax is now offering tax support for Bitcoin and other cryptocurrencies through their partnership with leading crypto tax software company, CryptoTrader.Tax.

Development Updates

January 18, 2019

Paying Taxes On Bitcoin - Everything You Need to Know

This guide walks through the fundamentals of paying taxes on Bitcoin and other cryptocurrencies

Crypto Taxes

January 5, 2019

The Ultimate Resource List For Crypto Traders & Investors

Charting tools, decentralized exchanges, news aggregators, ICO information, and every resource you need for your crypto trading.

Tools

December 20, 2018

How I Filed my Crypto Taxes in 20 Minutes Using CryptoTrader.Tax

I used CryptoTrader.Tax this year to automate the whole process. In this article, I am going to detail exactly how I filed my crypto taxes using the platform.

Crypto Taxes

December 15, 2018

Rebalancing vs. HODL - Which Strategy Drives Higher Crypto Portfolio Returns?

This article provides a comparison of how rebalancing performs when compared to holding as they relate to crypto portfolios

Tools

November 30, 2018

The Best Tools To Automate Your Crypto Trading Strategy

Professional tools to automate your crypto trading strategy.

Crypto Trading Bots

October 25, 2018

FBAR Reporting Requirements for Cryptocurrency

Does the Report of Foreign Bank and Financial Accounts (FBAR) apply to Cryptocurrency? This is a popular question within the crypto tax community to which no one has a definite answer.

Crypto Taxes

October 21, 2018

Cryptocurrency Tax Laws - Here’s What You Need to Know

This article addresses the current state of cryptocurrency tax laws and outlines the most important elements that you need to be aware of as a market participant.

Crypto Taxes

October 16, 2018

What to do with your 1099-K from Coinbase, Gemini, or GDAX for crypto taxes

What do you do with your 1099-K that you received from Coinbase? This article addresses how to handle the necessary tax forms you need for your crypto taxes

Crypto Taxes

September 29, 2018

How to Handle Your Bitcoin and Crypto Losses for Tax Purposes

This article discusses how to handle your losses and the important things that you need to keep in mind for your crypto taxes.

Crypto Taxes

August 9, 2018

The 2019 Guide To Cryptocurrency Taxes

This guide breaks down everything you need to know about cryptocurrency taxes so that you aren’t caught unprepared when tax season roles around.

Guides

August 5, 2018

How to Calculate Your Bitcoin Taxes: 2019 Guide

This guide breaks down the fundamentals of Bitcoin taxes and walks through the reporting process in the United States.

Guides

August 4, 2018

The 6 Things you need to know before going to a CPA for your Crypto Taxes

Crypto taxes are the ultimate Wild West right now. Here are six things that you should be aware of before forking over thousands of dollars to a CPA for your crypto taxes.

Crypto Taxes

June 12, 2018

What to Do If You Forgot to Report Your Crypto Trades On Last Year's Tax Return

A lot of crypto investors and traders are nervous about winding up with an audit and tax bill years down the road that they can't afford. The best solution to this is to simply be proactive.

Crypto Taxes

June 3, 2018

The Best Charting Tools For Crypto Traders

There are many different charting solutions on the market, but these three were the best we could find in terms of feature sets, ease of use, and exchange integration.

Tools

June 1, 2018

How to Report Cryptocurrency on Taxes: 2019

This article dives into the specifics behind reporting your crypto transactions on your taxes. If you are reading this, you are probably a crypto-trader or enthusiast concerned with the process of paying taxes on your trading activity.

Guides

May 25, 2018

The Best Open Source (and Free) Crypto Trading Bots

Crypto trading bots are tools used by traders to take the fear and emotion out of their trading.

Crypto Trading Bots

May 11, 2018

How To Calculate Your Trading Gains With CryptoTrader.Tax

If you were stuck calculating your gains and losses by hand this past tax season, you know first-hand how difficult it is to find historical price data for all of your trades.

Guides

April 12, 2018

Crypto Taxes: Common Questions Answered

The most commonly asked crypto tax questions all answered in one place.

Crypto Taxes

March 10, 2018

No obligations. No credit card needed. Instant tax forms.

Get Started For Free