CryptoTrader.Tax In Brief
Cryptocurrency trackers are useful because they combine information from many different sources into a single interface. This allows you to see how your crypto portfolio is performing without the need to log into several different sites. Crypto trackers like CryptoTrader.tax, for example, specialize in helping you figure out how much you owe at tax time.
As its name suggests, taxes are CryptoTrader.tax’s specialty. The inexpensive subscription plan is a plus and its tax form generation feature automatically produce IRS form 8949. However, there’s a catch– CryptoTrader.tax is currently under construction. You can sign up now, but you won’t be able to use the site at all until you gain early access approval.
Another key fact that you should know about CryptoTrader.tax is that it doesn’t seem to have any sync features. As a result, the only time that you’ll probably use it is around tax time. Crypto trackers that can sync with crypto exchanges and wallets can send you alerts when the price of your portfolio passes a certain threshold. Lack of live customer support and limited crypto exchange compatibility are two additional drawbacks.
- Generates IRS form 8949. CryptoTrader.Tax’s tax form generation feature saves you the hassle of filling out the capital gains form at tax time.
- Inexpensive. The $39.99 subscription price is less than what similar services charge.
- Intuitive interface. Calculating your taxes is a simple 5-step process.
- Free plan lets you see how it works. You don’t have to pay anything if all you want to do is import your information. However, you have to pay if you want to download reports.
- Still under construction. There’s no way to use CryptoTrader.tax immediately. All you can do is apply to gain access to the pre-release version.
- No live customer support. CryptoTrader.tax doesn’t offer live chat or phone support. You have to create a ticket and wait for a response if you run into a problem.
- Limited compatibility. Currently, CryptoTrader.tax only integrates with hosted wallets from a handful of the most popular exchanges: Coinbase, Coinbase Pro, Bittrex, Poloniex, Binance and Gemini. If you need to provide information from some other type of crypto wallet, you have to enter it in manually.
- No auto sync functionality. The tutorials seem to indicate that CryptoTrader.tax has no ability to automatically import your data.
What is CryptoTrader.Tax?
CryptoTrader.tax is a web app that generates IRS form 8949 and other tax reports. It debuted in December of last year, according to LinkedIn.
- David Kemmerer – Co-founder. Kemmerer has been working in sales, finance and business development since 2015. He has worked for TerraForm Power, SunEdison and is currently an Account Executive at Oracle.
- Lucas Wyland – Co-founder, Software Engineer. Wyland is currently studying Computer Science at Missouri University.
CryptoTrader.tax’s main value proposition is that it’s cheaper than other crypto tax calculators. Here are some of its most notable features.
Tax form generator
CryptoTrader.tax can import your financial information from a handful of different cryptocurrency exchanges. It crunches the numbers for you automatically, thus saving you the trouble of doing the math on your own.
Two import methods
You can either import your data via CSV files or you can create an API key and use it to import your information.
CryptoTrader.tax’s main limitation is that it doesn’t automatically sync your accounts. This missing feature means that it’s really only useful at tax time. Similar products that do have a sync feature can be used as day-to-day crypto portfolio trackers.
A second limitation is that CryptoTrader.tax doesn’t seem to provide a way to automatically import transactions from individual crypto wallets. If you need to import information from a hardware, paper or some other type of crypto wallet, you have to do so manually.
Another notable downside: CryptoTrader.tax’s calculator doesn’t process margin trades or derivatives.
CryptoTrader.tax’s blog contains information on diverse topics, ranging from FBAR reporting requirements to what to do if you forgot to file your crypto taxes last year. However, its customer support knowledge base is quite limited. Basic tutorials walk you through how to import your tax information from all the various exchanges that CryptoTrader.tax supports. However, the screenshots embedded in those tutorials seem to be out of date. In addition, there is no live support. If you need to contact the team, you have to submit a ticket and wait for a response.
CryptoTrader.tax currently doesn’t have any native apps for mobile devices.
The Getting Started plan lets you upload your information to CryptoTrader.tax. This essentially lets you see how the platform works and what it looks like. If you want to download reports or tax forms, you have to buy the $39.99 Single Report plan.
Importing your tax information is a five-step process. First, you submit your basic information. Presumably, this means providing your name, address and similar data. Then, you manually add in any income gained through cryptocurrency transactions:
The next step of the process involves linking your crypto exchange accounts. You can do this by submitting a CSV file or you can use an API key to import your information.
The final report displays the tax year, the calculation method used, the number of manual entries, the number of trades, your portfolio’s net cost basis, net proceeds gained and net overall gain. Various tabs display short-term and long-term gains, income and closing positions.
To download the actual forms, choose the type of report you want (options include Short Term Gains, Long Term Gains, Income, Closing Positions and Audit Packet) and then click the Download Report button.
If you do all your trading through one or more of the six exchanges that CryptoTrader.tax supports and all you need is help with your taxes, it might be worth a look when it becomes available again. CryptoTrader.tax’s cheap plans may help it compete with similar services after the developers roll out the new and improved version.