The bitcoin taxation season is almost upon us, which highlights a very important problem. Most people are unaware of how they should incorporate bitcoin into their tax assessment. Thankfully, there are quite a few tools available which will help users take care of these problems with relative ease. It is important to keep in mind very few countries require bitcoin users to take cryptocurrency earnings into account right now.
3. BITCOIN TAXES
As the name of this powerful tool suggests, the ultimate objective is to help users calculate capital gains and losses for bitcoin. Since most people aren’t aware of the cost-bases of every BTC they own or how much profit they made exactly, it is very important to have access to the right data. Bitcoin Taxes claims to offer this solution free of charge, which makes it quite a powerful tool to help during the tax season.
Some of the Bitcoin Taxes features include support for major world currencies, importing mining income, and importing trade histories from multiple exchanges. Additionally, the company also provides tax professional and accountant packages for users looking for more advanced bitcoin tax solutions. Additionally, the platform also supports various altcoins, including Ethereum and Dogecoin.
The name CoinTracking does exactly what it says: track user’s coin history and determine how much tax needs to be paid as a result. With a wide range of supported cryptocurrencies – including bitcoin, Ethereum, Ripple, and thousands of others – filling in those tax forms becomes very straightforward. Moreover, this platform is specialized doing extracting trading information from individual exchanges, which makes it quite attractive.
Generating the capital gains report for cryptocurrency activity remains the primary objective for CoinTrack. Additionally, the platform supports 25 different exchanges users can import data from, which makes everything very straightforward. Users will also receive interactive charts for all their currencies and trades, as well as an overview of potentially unrealized gains.
One of the oldest bitcoin taxation solutions goes by the name of LibraTax. The company likes to position itself as the management information layer for blockchain technology, which is quite a mouthful. The company also has a thorough FAQ on their website explaining the bitcoin taxation process as a whole. Interestingly enough, LibraTax for individuals is free of charge, albeit there is a paid plan for users who prefer to receive an option report.
It is important to keep in mind LibraTax is only useful for people who live in the United States. After all, the US is one of the few companies who actively tax bitcoin capital gains in the first place. That situation may change in the future, though. LibraTax has been around for quite some time and remains one of the most commonly used platforms for bitcoin taxation calculations.
(Contributing Source: themerkle.com)