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Bitcoin & Cryptocurrency Profit & Loss Trackers & Capital Gains Calculators
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jamaicabound Offline
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Bitcoin & Cryptocurrency Profit & Loss Trackers & Capital Gains Calculators
Hey guys, just curious what if anything you guys are using to calculate your profits and losses as well as capital gains if you plan on paying taxes.

I've tried Cointracking, Cryptocompare, and Altpocket and have had problems with all of them not correctly tracking my cost basis. Wondering if there's a better solution.

As for capital gains the best site I've found thus far is Bitcoin.Tax, however I have a couple unrecognized deposits that are throwing off my numbers and also it doesn't look like they support Bittrex.

One last thing for any of you traders. I have a hard time wrapping my head around how to look at my profits do you try to factor in terms of Dollars or Bitcoins in terms of trying to see what you gained?
08-24-2017 03:32 PM
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redbeard Online
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RE: Bitcoin & Cryptocurrency Profit & Loss Trackers & Capital Gains Calculators
If you're having issues, it might be worth it to hire a CPA. Bitcoin.Tax has a list of qualified CPAs.

Cointracking is the GOAT, Bitcoin.Tax is the runner-up. If you go to a CPA, they will probably use one of these two softwares.

Re: tracking profits

You do it as dollars (because that's what you pay taxes on). Even if you buy and sell using BTC, your cost basis and sale price are measured in dollars.

Let's pretend you buy 10 LTC with 1 BTC when 1 BTC = $10k (round numbers for simplicity).

LTC appreciates vs. BTC and BTC appreciates vs. USD at the same time. You sell the 10 LTC for a total of 2 BTC when 1 BTC = $15k.

Cost basis: $10k
Revenue: $30k
Profits: $20k (this is what you pay taxes on)

Cointracking & Bitcoin.tax do all of this for you.

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12-28-2018 12:54 PM
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RE: Bitcoin & Cryptocurrency Profit & Loss Trackers & Capital Gains Calculators
Bumping this old thread

Tax Professional here. After years of seeing the IRS focus on overseas bank accounts and tax payers the IRS's next 'pet project' is going to be crypto currency. The IRS really only seems to have the ability to focus on one thing at once like so:

2006-2012: Paypal accounts and income
2013-2018: Offshore income
2020? - ? : Cryptocurrency

The agency is full of boomer's and NPC's so every CNN story about how Crypto is the currency of drug dealers and hitmen drives policy. If you don't have good records, start keeping them. You'll know that the 'eye of sauron' has fully turned when you see the first celebrity/famous trader in the news for some sort of back taxes. The IRS does 'celebrity' audits on purpose to promote tax compliance to the broader population. I can 'smell' it already as all of the professional journals seem to be saturated with 'what about bitcoin' type of articles.

If you doubt that it they can ever track everyone down, they have other means. I expect some sort of stupid law like they did with foreign income. It wasn't that the foreign income was taxable, it was that you had to file "information returns" which told about all of the foreign bank accounts and assets that you have. If you file the forms wrong, or not at all you get hit with a $10k/year penalty. The IRS loves it, as it requires no technical competence from an auditor and taxpayers can't argue against it. I expect something equally ham-fisted with Crypto...so they can really crush the few people that they actually catch and scare everyone else.

Bitcoin.tax is good but regardless make sure you have your records in order for now so that you a ready for when the IRS puts boots to Crypto enforcement.

Why do the heathen rage and the people imagine a vain thing? Psalm 2:1 KJV
06-01-2019 09:03 AM
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