Have you been wondering what the best resource is for reporting and tracking your portfolio? Better yet, have you considered your tax implications on all the trades you have been doing? Everyone eventually reaches these questions in their crypto journey, and they’re very important ones. Appropriately paying your taxes is extremely important and, while this is not tax advice (consult a tax professional/CPA for any personal questions), it looks like the IRS is planning to treat any crypto purchase/trade the same way as they would stocks. Forbes recently did an article explaining the situation.
The precedent is pretty strong. You can’t swap shares of Microsoft for shares of Google and you can’t swap a bull for a cow. They aren’t considered like-kind.
Also, all of this becomes a moot point after 1/1/18 because the new tax law ends tax-free trades under Sec 1031 for anything except real estate.
With that in mind, we’re here to help suggest a tool to help you with your taxes.
What is CoinTracking?
CoinTracking.info [Disclaimer] is a very professional, well implemented crypto portfolio tracker and reporting tool (Using our link will give you 10% off if you do decide you need an upgraded plan). It has all sorts of various reporting capabilities, but being able to generate a tax report is one of the most crucial ones within this space today. From what we have seen, there are not many good resources for generating a tax report in the crypto space today. CoinTracking is a web based UI that has a host of features, along with a very well designed mobile app for Apple iOS and Android.
How Do I Get Started?
Getting started and everything setup was surprisingly fast and easy.
- Go to Cointracking.info [Disclaimer] and select the orange “Sign Up For Free” button at the top right. Simply enter a username, email and password to continue.
- Once registered, you will be taken to your dashboard. The first thing you’ll want to do is manually add or import your trade history information from various exchanges you have participated in. Importing is very easy and the site has great instructions on how to import from a long list of exchanges. Compatible wallets and bulk imports are also great options for getting your crypto history into the platform.
We’ll use Binance as our example (https://cointracking.info/import/binance/):
If you’re more technically savvy, there is an option to setup API calls with exchanges that allow them to be able to receive more real time, and sometimes richer information. CoinTracking also has their own API if you’d like to build your own application that integrates with your data from their site.
Note: if importing from Coinbase, make sure to select the appropriate currency (BTC/ETH/LTC/BCH at time of writing).
CoinTracking has a plethora of reports to pick and choose from, with more added quite frequently as the platforms continues to develop.
Arguably one of the most important pieces of functionality is the tax report. After entering and/or importing all your information, click on the “Tax-Report” feature. There are various reporting options (FIFO, LIFO, etc.).
If you’re a frequent trader with more than 200 transactions to report, you’ll have to upgrade your account to access all the tax features you’ll need. It will cost you, at time of writing, ~$200 for a 1 year subscription to pro and ~$600 for a lifetime subscription.
A Really Solid Tool
Overall, the portfolio tracking, dashboarding, and reporting in CoinTracking is more than what most people in the crypto space need at this point, especially if you’re just starting out. There’s a lot more on the site to explore, but these are the core features to get you started.
We hope this quick guide to a great tool helps — happy trading!
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