The cryptocurrency market is one of the newest and fastest evolving financial markets in the world. In crypto, the level of innovation comes at a speed never seen before, with complicated new protocols, tokens and financial products being created and launched every day. These different projects require different accounts in order to be accessed, and with hundreds of different blockchains and tens of thousands of wallets and exchanges to choose from, it is no wonder the average crypto investor has many different wallets and exchanges with different investments.
Such a high level of innovation does come at a cost, however. Regulators and the financial infrastructure surrounding crypto markets is struggling to keep up, leaving many investors in a sticky situation with their tax obligations. There is no ‘reporting standard’ that wallets and exchanges must adhere to, instead they all decide what they want to report and which way they want to report it. This means even a single transaction category could mean something different to each exchange.
No wonder everyone is confused!
This is what we call the ‘Crypto Tax Nightmare’, and this is what we are here to help you with.
What is CryptoTaxCalculator?
CryptoTaxCalculator is a smart software product that helps you easily make sense of your complex crypto transactions. We decipher the data you provide from hundreds of different exchanges and wallets across many different blockchains in order to help you calculate your tax obligations.
Our platform lists your transactions across all accounts, wallets and blockchains in an easy-to-understand, chronological order. The platform will automatically categorize transactions with enough data, calculating capital gains, losses and income along the way.
If there are any areas that require manual input, which is unavoidable in such a complex investment area, the platform highlights what we think could be the problem and helps you to reconcile the issue. This ensures your reports are accurate and prompts you to check over complex transactions to make sure they are being reported correctly.
So far our platform has assisted over 90,000 users in calculating their tax obligations for crypto-related activities, including hundreds of accountants with thousands of clients. We want to empower individuals taking the leap into this new and innovative space by allowing them to stay on top of their investment activities and stay in-line with their tax reporting requirements for their jurisdiction.
Does CryptoTaxCalculator calculate my taxes for me?
Our platform is here to help you calculate your tax obligations in terms of your crypto investments. Your tax obligations are a big picture that encompasses all of the financial activities you partake in in all areas of your life, including your sources of income and other investments.
Crypto is likely just one component of your tax obligation and as we are not involved in calculating all other components, we cannot provide you with an exact figure to pay your local tax authority. Instead, we provide you the required information to ensure your crypto investments are included in your overall tax obligations in an easy to understand manner. We break down the components into long and short term capital gains, losses and income so you don’t have to!
For many tax jurisdictions, we have the option to download pre-filled forms that can be submitted directly to your preferred Tax platform or Accountant!
Why does this platform need my input?
Crypto tax is inherently nuanced. There are many scenarios that fall under grey areas when it comes to tax reporting. This is one of the downside of the high level of innovation apparent in the crypto space, regulators are struggling to keep up!
Our platform will highlight areas where we think you should have some manual input. This is not because we want to be annoying or waste your time but rather because we want to make sure everything is correct. If we were to handle every transaction the same way for everyone, we would find many users may not get the most optimal and correct tax outcome for their own personal situation. We want to help you get to your correct tax outcomes for you, and we believe we can do this in the most efficient way possible. Tax can be an overwhelming and scary subject at the best of times, so we want to make sure that you have checked off every complex event to make sure it is correct.
After all, no one knows your transaction history better than you do!
Does it sound like our platform is right for you?
If CryptoTaxCalculator sounds like the platform for you, then head over to https://cryptotaxcalculator.io to sign up for a free account with us! Once you see how easy we make crypto taxes, we are sure you will never want to leave.
Why not head over and test us out, you have nothing to lose; it’s free! Our free accounts have all the features for categorising your transactions. Once you see how easy and intuitive the experience is, we know you will want to get your hands on the tax reports!