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.
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.
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.
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.
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.
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).
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.
This article walks through the process of filing your cryptocurrency taxes through the online version of TurboTax
This guide breaks down the fundamentals of Bitcoin taxes and walks through the reporting process in the United States.
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.
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.