Which programs do you prefer to use for calculating taxes on crypto events. I am trying to be as ready as I can for my coming purchases.
I’m a CPA and the programs that we have suggested our readers use are:
We’ve not seen any other widely available programs that match the features of these applications.
This is much appreciated. Thank you. I have been trying to prep my household, I want to do this right.
My intent is to dollar cost average and hold, thru mainly US based exchanges.
Is there anything any other advice you can give someone knew to this space?
Cointracking.info - is free up to 300 trades. A trade includes transfers between wallets and mining income deposits. I have seen some think that when it says 300 trades it is just trades on exchanges.
My one piece of advice is to keep a journal / log of your events even if you use a service like cointracking.info.
This will help you determine what the transactions are and what you were doing that day. I have found several times the API calls did not work properly on cointracking.info and a few of them were hard to recall what those transactions were.
Lastly get in a routine. Almost all of us were brought up allowing others (banks) to do a lot of this for us. Start small and slow until you get a routine built.
Maybe the next time i am visiting HP there in town we can grab lunch.
Cointracking is free up to 200 trades -
The rest of your advice is on point.
I have with already started small, purchases. I have yet to send any bitcoin anyway, I will be setting up my Trezor soon though.
What are facts that I should include on the notes?
I am thinking the type of interaction, in my case purchase. Should I include the amount purchased, and at what cost in dollars and bitcoin?
What other info should I include? Or should this be sufficient.
I would like to meet when you are in town. You already know I am in Houston area, message me when you are in town I will see if my wife will let me out of the house.
Date purchased or sold, market utilized, type of coin (eg btc, bch, eth), units purchased, cost of coin, any markups or fees paid.
For Forks/ Airdrops - Units received, date of fork, date claimed and deposited into your wallet
For me it is more of a journal style not a ledger. The wallets and exchanges have all the information that @Peter_Rehm mentioned or at least the ones that I use seem too.
My entries are along the lines of this:
Date Time - Bought D3 from $1000 in LTC. Purchased LTC on coinbase for this transaction
Date Time - Moved NEO from Bittrex to Nano.
This way when I go back to look at my spreadsheets from cointracking.info if say Coinbase API didn’t show this transaction on cointracking.info I can view Coinbase for the exact details but I know what was happening on Day 1. Also any movement from Coinbase to another wallet is considered a sell on their part so I use this to classify the transaction properly. This is just how I do it as I have not found a need to all the information. @Peter_Rehm’s way is probably the correct way
I have fallen a bit behind on my tracking. I have kept and a saved all transaction info. I intend to take time off from work and create my own spread sheet.
Thanks again for all the info, I am nearly done with my initial investment capital. It should pretty much be dca from here to the moon.