With the continued growth of the cryptocurrency ecosystem, millions of people around the world have started investing in the crypto market to take advantage of the unique opportunities it provides to generate income in different ways.
CryptoTaxCalculator was created to help crypto investors in the United States, Canada, New Zealand, United Kingdom, and Australia, identify which taxes they are subject to when it comes to crypto investments easily and automatically.
You can ensure that you don’t incur the IRS’s, or your local tax agency’s wrath in the future.
As crypto investment grew, so did the oversight of governments around the world who started not only regulating access to cryptocurrency buying services but also decided to tax crypto holders as they would with other types of property.
One of such countries was the United States, with the internal Revenue Service (IRS) classifying cryptocurrencies as property, making those investors who sold, traded, or used crypto as a payment method at some point subject to capital gain taxes.
CryptoTaxCalculator: Making Crypto Investment Easier
The taxing process is one of the most complex bureaucratic procedures in any country, requiring millions of people each year to go through a painstaking process to calculate how much taxes they have to pay, with cryptocurrencies being one of the most unknown areas when it comes to calculating.
While multiple solutions have been created to facilitate the calculation of how much should be paid in taxes each year there are a lot of doubts and a low number of platforms that have integrated such features when it comes to cryptocurrencies.
What is CryptoTaxCalculator?
Created back in 2018 soon after the Initial Coin Offering (ICO) boom of 2017, CryptoTaxCalculator was created as a solution to traditional tax assistance software to deal with the calculation of complex crypto transactions efficiently.
Shane Brunette, a software engineer with a Master’s in Artificial Intelligence and a double degree in Psychology/Economics, shared his proof of concept on Reddit and used the feedback to create the prototype of what would become CryptoTaxCalculator.
Version 2 of the product was launched in 2020, supporting over 100 crypto exchanges without requiring its users to run complex calculations or procedures.
Normally, crypto investors will have to invest days of bookkeeping and manual calculations when dealing with taxes. If a user has been investing in Decentralized Finance (DeFi) protocols, the process could take even longer and be significantly more difficult.
CryptoTaxCalculator will automate the process of tax calculation by directly connecting to the user’s exchange information, categorizing transaction history, and processing the information to generate tax reports depending on the assessment.
How Does CryptoTaxCalculator Work?
CryptoTaxCalculator works by connecting to a user’s exchange data by using an Application Programming Interface (API) or Comma Separated Values (CSV) files, a process that is simpler than it sounds from the acronyms, or to their public wallet address.
Once it connects to the data source(s), the tool will automatically import the information to process it and generate a tax report based on the specific obligations of the user, automating all of the processes.
With CryptoTaxCalculator, users can connect to more than 100 exchanges and platforms to automatically import their data.
It operates with the most popular platforms such as Binance, Binance.US, BitFinex, BlockFi, Coinbase, Bybit, Coinbase, Crypto.com, Kraken, Huobi, Ledger Wallets, Uniswap, Yoroi, and many more.
If the exchange or platform you are using is not in the list of compatible platforms, you can contact CryptoTaxCalculator’s support team to get assistance on how to import the data to get your tax reports as fast and easy as possible.
Something else you should keep in mind is that CryptoTaxCalculator also offers support for Non-Fungible Tokens (NFT), which are a developing niche in the crypto ecosystem not supported by similar tools.
How Much Does CryptoTaxCalculator Cost?
CryptoTaxCalculator works with an annual subscription model which you can use to generate reports for all previous tax years, instead of paying for a single annual report.
This means that if you need to amend a report due to forgetting to add a waller or similar incident, you won’t need to pay extra.
There are 4 tiers to choose from, with all of them including a 30-day money-back guarantee that you can take advantage of if you are not satisfied with how the platform works.
At this time. these tiers start at $49 a year and can go up to $299, with the difference being the number of transactions supported.
The “Rookie”, ”Hobbyist”, and “Investor” tiers offer the same features but different transaction limits of 100, 2500, and 1000 transactions respectively. The features included on these tiers are:
- Unlimited Exchanges
- Exchange API Sync
- CSV File ImportFIFO, LIFO, & Specific ID
- Capital Gains Tax Report
- Income Tax Report
- Inventory Report
- Online Chat Support
- Covers all tax years from 2013-2021
The “Trader” tier is the most expensive of the fourth but supports 100k transactions and includes all of the other plan’s features plus support for trading as a business and comparing taxing strategies.
The Team Behind CryptoTaxCalculator
CryptoTaxCalculator was founded by Shane Brunette as the result of his own experience when doing his taxes during 2017 as Australia was one of the first countries to create legislation around cryptocurrency Taxation.
He is a software engineer with a Masters’s in Artificial intelligence, a double degree in psychology and economics, and years of experience in the cryptocurrency market at the time of developing the platform’s prototype.
While Shane is the Founder and Chief Executive Officer (CEO) of the company, his brother Tim Brunnete acts as the Chief Technology Officer (CTO).
Tim worked as a software engineer for Accenture for many years and also holds a Master in Artificial Intelligence, with the addition of an undergraduate degree in Space Engineering
In addition to the brothers, the company works with multiple accountants and software engineers to constantly improve the platform based on users’ feedback. while also providing top-notch customer service.
Who Needs CryptoTaxCalculator?
CryptoTaxCalculator is designed to help accountants and cryptocurrency investors of all levels who live in a country with strict tax regulations that require them to pay taxes for their cryptocurrency transactions and/or holdings.
DeFi users, Day Traders, and Crypto Investors who are not familiar with tax laws or want to automate the process to ensure their tax reports are correct can make use of the tool to free themselves from the trouble and worries that tax season brings, especially at a time when crypto regulations continue to change around the world.
At this time, the platform supports English-speaking countries like United States, Canada, New Zealand, United Kingdom, and Australia, but support for other countries could be added in the future.
Take a Look at CryptoTaxCalculator
No matter how much experience someone has paid taxes, tax season will always be one of the most important and stressing seasons in any given fiscal year.
With the crypto industry being young and governments still getting familiar with it, crypto investors have an added reason to worry about it.
Automation tools like CryptoTaxCalculator are an easy way for investors to ensure they are correctly paying their taxes to prevent any issues in the long-term which could be costlier than the taxes themselves.
While there are other tools available for crypto investors, it is important to ensure you choose one that offers good customer support, supports your country, and is up-to-date when it comes to types of digital assets, exchanges, and platforms.
Making use of such a tool can not only prevent issues for you but also save you money when paying taxes as in certain situations you might see a reduction in the amount you need to pay as a result of your crypto investments.
It doesn’t matter if you are looking for security, simplicity, detailed reports, or just to have more time to invest in a hobby (or crypto), CryptoTaxCalculator is one of the best ways to achieve that.
The post CryptoTaxCalculator Review: Simplify Your Cryptocurrency Taxes appeared first on Blockonomi.
April 06, 2021 at 06:06AM https://blockonomi.com from Blockonomi https://ift.tt/3dH5gnY
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