Crypto Tax Reporting- Step by Step Guide

As more and more countries increase their regulations towards cryptocurrencies, the higher the likelihood that you will need a crypto tax reporting tool. Keeping track of all your trades and transactions means having to compile the buy and sell date, cost basis, transfer fees and by using a specific regulatory system, determine what is to be expected to be calculated as income tax and what is a capital gain. ACCOINTING.com is a tool made by crypto trades for crypto traders and we understand your needs.

As a crypto trader you want to:

1. understand the possible opportunities in the market for tax loss harvesting easily and accurately
2. make more money and not waste time compiling transactions for crypto tax reporting

In order to do all of that, handling cryptocurrency has to be simple, fast, reliable, accurate, safe, transparent, affordable, and user-friendly. All the right variables need to be in the right place doing the right thing at the right time with a specific purpose.

Crypto Tax Reporting

In this section, you’ll learn some basics about tax reporting in ACCOINTING.com, as well as the different tools you have on the desktop site. Feel free to check the Crypto Tax Guide for more information.

a. Report

TopicDescription
Short term gainsGains generated less than a year, including margin gains
Long term gainsGains generated more than a year
Total feesFees due to transactions on the last year

ACCOINTING.com allows you to download different types of report files depending on your needs.

TopicDescriptionDownloadable files
File with CPAIt is recommended for people who participate in different crypto markets, like staking, margin trading, mining, etc.Full Tax Report PDF + CSV 
Form 8949 PDF + CSV
All files in Excel
File aloneThis option is for people that want to do their tax report themselves.Full Tax Report PDF
Form 8949 PDF
How to file taxes PDF
File with an online toolFor people who have external tax reporting apps Turbo Tax CD
Turbo Tax Online
Form 8949 CSV

b. Holding Period

Here, you can check and analyze your portfolio balance when you’re making long-term (more than a year) investments. It helps you identify when is the best time to claim your gains depending on your tax preferences and the time you’re willing to wait.

As you move the chart bar, ACCOINTING.com estimates the amount of crypto that can be claimed as long-term gains represented in a percentage. 

  1. Holdings summary
  2. % long-term gains vs. time chart
  3. Holdings table

Holdings summary:

Topic Description
Total Crypto ValueThe total value of your portfolio
Gains < 1 YearGains obtained in less than a year calculated using current prices.
Gains > 1 YearGains obtained in more than a year calculated using current prices.

% long-term gains vs. time chart: this percentage is calculated using the long-term earnings of your total value at a specific time. This space is also used to analyze the selected assets. If you click on a particular crypto coin, it’ll appear a chart that allows you to realize the timeframe when your selected crypto is beginning to produce long-term gains.  

Holding table:

Topic Description
ASSETName of your asset/wallet
VALUE/AMOUNTValue of your amount of crypto at the current price
POSITIONSPercentage of your gains 
CURRENT PRICEThe present value of one coin
GAINS<1YGains less than a year (short-term gains) since the first trade
GAINS>1YGains more than a year (long-term gains) since the first trade
DETAILSShow the distribution of your asset between wallets/exchanges and short-long gains in the amount of crypto

c. Tax Methods 

As stated in General Settings, you can change your tax preferences depending on your trade style or circumstances. The following is a summary of each method, so you can better understand their differences. For further explanation, visit chapter 8 of the crypto tax guide.

N:  units sold

n: first units purchased

nL: last units purchased

nH: last units purchased with the highest price

P: price sold (current price)

p: first price purchased

pL: last price purchased

pH: Highest price purchased

CG = Capital Gain

Tax methodAbbreviationDescriptionBetter scenarioFormula
First In, First OutFIFOCoins are sold in the exact chronology as they were purchased.General circumstances N*P – N*p = CG
Last In, First OutLIFOThe last coins purchased as the first ones for sale.Leveraging long-term holding period N*P – n*pL + (N-n)*p = CG
Highest In, First OutHIFOHighest purchased coins as the one sold first.Reducing taxes by using the most significant capital losses and the lowest capital gainsN*P – nH*pH + (N-nH)*p = CG
c

d. Transaction Classifications for Crypto Taxes

For crypto tax reporting, the implications of the different types of transactions that you made will vary per country. Here’s a list of the different regulations per each of the supported countries in ACCOINTING.com

USA

UK

Germany

Here’s a list of the symbols per transaction inside of ACCOINTING.com. For staking income, classify it as income.

ClassificationSymbol
Add funds
Airdrop
Bounty
Classify
Gift received
Gift sent
Ignored
Income
Internal
Margin fee
Margin gain
Margin loss
MIned
Payments
Remove funds
Staked
Standard
Swap

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