is a crypto tax software and calculator company. Crypto users are required to fill a report to the authority taxes with their crypto assets capital. Some of the crypto users hire accountants to help them with calculating the taxes. Others, use crypto tax reporting software and some calculate the taxes themselves. With this Cryptotrader Tax Review, users can calculate taxes easily and 100% accurate details.
Cryptocurrency miners are also required to file tax reports too. The first tax report includes the total income from the USD value of the coins the miner has mined. On the second tax report, miners have to fill details with the amount the miner has earned or lost when the mined coins are sold or traded.
All cryptocurrencies such as Bitcoin, Ethereum, Ripple, etc are treated as property for tax purposed and not as a currency in the United States according to the Internal Revenue Service (IRS) guidance.
Other countries as Australia, Canada, and the United Kingdom have started to treat cryptocurrencies as taxable property. The law requires taxing, and there are consequences if the taxes aren’t reported to the tax authorities. If taxes are not reported, the user can face criminal prosecution with five years in prison and a fee of up to $250,000 in the United States.
With CryptoTrader Tax the user can calculate taxes easily in a couple of minutes by an automated system. By just importing the trades history with more than 20 popular cryptocurrency exchange websites supported.
Which exchanges are supported?
CryptoTrader Tax users can import trades history from the following exchange-listed below:
Abra, Binance, Binance US, Bittrex, Bitfinex, BitMart, Bitstamp, Bitrue, BTC Markets, Circle, Invest, Coinbase, CoinBene, CoinJar, CoinMate, CoinSpot, Coss.io, Changelly, Cryptopia, CryptoBridge, ErisX, Exodus, EXMO, GateHub, Gate.io, GDAX, Coinbase, Pro, Gemini, Huobi, itBit, Liquid, Lykke, Kraken, KuCoin, Mercatox, Poloniex, Square, Cash App, Tidex, Uphold, Voyager.
How this CryptoTrader Tax Review Works
- First, the user imports the crypto trades history from the exchange website he’s using and import them into the CryptoTrader.Tax.
- The user adds any other cryptocurrency income such as mining, exchange rewards (airdrops), gifts.
- After the transaction history has been imported, the report is generated and can be downloaded. The tax report creates the following documents for each tax year. Cryptocurrency Income Report, Short & Long Term Sales Report, IRS Form 8949, Audit Trail Report, End of Year Positions Report, TurboTax Online Direct Import.
CryptoTrader Tax calculates the taxes with the same methods applied by tax professionals. The user can download the completed report and import it into software like TaxAct or TurboTax. The tax report includes all the following documents such as income report, sales report, end of year report, IRS form, and more.
The software calculates the gains and losses by using fiat currency. The tax report can be used for any country that supports the accounting method as LIFO, FIFO, or specific calculation methods. The software has tax-loss harvesting tools added on the software to help the user by reducing the capital gains. CryptoTrader Tax allows the user to import the capital gains and losses easily with tax platforms as TurboTax or other platforms.
Tax Loss Harvesting is the practice of selling a capital asset at a loss to offset a capital gains tax liability. By realizing or “harvesting” a loss, investors are able to offset taxes on both gains and income. This is a tax reduction strategy commonly used in the world of stocks and securities.
The user can choose from 4 different pricing packages. Each pricing plan offers the same features except for the trade limit, which varies on the package plan. All of the packages are one-time use, and the list of packages is shown below:
“The Hobbyist” packages costs $49 USD and allows the user to import 100 trades history.
“Day Trader” package costs $99 USD with 1500 trades history allowed.
“High Volume Trader” allows 5,000 trades history with a price of $199 UDS.
The last package “Unlimited”, offers unlimited trades history and costs $299 USD.
All of the packages come with the same features available on each package plan listed as below: Free Report Preview, Live Chat Support, Unlimited Report Revisions, FIFO, LIFO, & Specific Identification, IRS Form 8949, Capital Gains Report, TurboTax Integration, TaxAct Integration, Tax Loss Harvesting.
Also on this website if you are interested we have a article about the Top 10 crypto wallets best fit for you.
Calculate your client’s tax report
CryptoTrader Tax offers the option to help your clients by inviting them and file the cryptocurrency taxes. After inviting your client and the imported trade history is finished, the user can generate and download the tax report and send to the client.
The user can import the client’s report tax on tax filling software as ProConnect, Drake, ATX, UltraTax, and more. The auto-generated tax report comes with the following documents: IRS Form 8949, Short & Long Term Gains, Cryptocurrency Income, End of Year Holdings, Audit Trail.
The user can invite as many clients to generate tax reports. The dashboard gives access to each account and keeps all client data protected.
Refund & Payment
The user can pay for the CryptoTrader.Tax using Visa, MasterCard, and American Express credit card. CryptoTrader Tax offers a full money-back guarantee within 14 days of your purchase.
How to create an account
CryptoTrader.Tax offers both Individual account and Professional account type to choose during the registration. The activation is instant and the user can start using the tax software to calculate their tax report.
The affiliate program offers users a 25% commission for each referral made by the user. The user can access real-time tracking to view the number of referrals, purchases amounts made by the referral user, and more. The user can request a withdrawal after earning $30 USD or more by referrals. The payment is done via PayPal and the CryptoTrader Tax offers banners and promotional material to reach more referral clients.
This CryptoTrader Tax Review makes sure that all password credentials are hashed with BKDF2 function with HMAC-SHA256, 128-bit salt, 256-bit subkey, 10000 iterations. It hashes all password of clients to ensure safety and safe data storing. It offers TLS and SLL on their webpage and the data sent from CryptoTrader Tax is encrypted using 256-bit encryption. All payments are processed with Stripe which and the user can delete all transaction data on its account.
If you are interested in using CryptoTrader Tax, without extra costs to you it would be a huge help if you click here so this website gets credit for this article.
Image via pixabay, Writer Behar H.