How Coinigy Users Can Automate Their Crypto Tax Reporting With CryptoTrader.Tax

Coinigy has officially partnered up with CryptoTrader.Tax to bring streamlined crypto tax reporting to users! 

CryptoTrader.Tax is like TurboTax for cryptocurrency. It is the leading tax reporting software for crypto investors and enthusiasts. Users of the platform are able to import their historical cryptocurrency transactions and generate necessary tax reports with the click of a button. With their 2018 partnership with tax giant TurboTax, CryptoTrader.Tax is truly bringing cryptocurrency tax reporting to the mainstream. 

How does CryptoTrader.Tax work?

CryptoTrader.Tax integrates with major cryptocurrency exchanges and platforms to allow users to import historical transactions. After importing your transactions, the software will assign fiat currency prices for each transaction and generate your required tax reports that you can then import into platforms like TurboTax or TaxAct, or simply send to your tax professional to file on your behalf.

CryptoTrader.Tax follows a five step process for tax report creation. We will walk through each of these steps below.

Step 1 - Select Your Exchanges / Platforms

image__13___1_.png

In step one, simply select each of the exchanges and platforms that you have used to buy, sell, trade, or earn cryptocurrency. These are the platforms that you will be importing historical data from.

Step 2 - Import Trades

5dd1bad4edfe6ae6db701a4c_Crypto_Tax_Import_Trades-p-1600.png

For each platform that you select on Step 1, you will see an option to import historical data from it within step 2. Import your data from each of these platforms by connecting your account via API key or by dropping in the transaction history CSV file that your exchange exports. Either option works. Once you have imported data from all of your exchanges, you can move ahead.

Step 3 - Other Transactions

5dd1baedee42463b602035bb_Bitcoin_Taxes_Mining_Income-p-1600.png

Step three is for importing transactions that are not captured at the exchange level. Incoming transactions like receiving coins from mining, staking, interest accounts, or other means should be added as incoming transactions. These types of events result in taxable income. CryptoTrader.Tax generates a complete income report for you detailing all of your mining or staking income that you received over the course of the year in USD, or your home fiat currency, values.

 

Payments and gifts sent to friends should be added as outgoing transactions within step three.

Step 4 - Review

image__14___1_.png

Once you reach step four, all of your data will be imported into the system. All of your data is ordered chronologically to make it easy to review. Make sure that everything is accounted for within step 4.

Step 5 - Create Report 

5dd1baffef6ed9725ec0a414_Bitcoin_Taxes_Capital_Gains-p-1600.png

Lastly, generate your complete tax report with the click of a button on Step 5! Included in your tax report is IRS Form 8949, short and long term sales reports, an income report, as well as a complete audit trail detailing how every single taxable event was calculated. Checkout an example cryptocurrency tax report here.

You can import your complete cryptocurrency tax report into tax filing software like TurboTax or TaxAct, send it to your tax professional, or file it yourself!

In Conclusion

With 5 easy steps, CryptoTrader.Tax streamlines all of your crypto tax reporting so you don’t have to spend countless hours manually working through all of your data. As a result of our partnership with the CryptoTrader.Tax team, Coinigy users can receive 10% off all of their cryptocurrency tax reports.

 

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Comments

0 comments

Article is closed for comments.