One of the most common questions people ask me is how do I calculate the tax due on cryptocurrencies and keep records?
When I first started out I was so keen to trade and swap different cryptos at varying prices that when I sat down and tried to calculate profits, prices paid etc, it was a complete nightmare trying to work it all out and calculate any taxes that may be due .
Whenever I have a problem I genuinely believe I’m not the only person on the planet with the same problem and was pleased to discover yet again that this was true.
I discovered a site a couple of years ago that calculates the lot for me just by sending out an email to a couple of friends!
A friend in the United States and a friend in Germany (I’m in the UK) both used the same site and recommended it so I thought I would use it for a good while before recommending it myself too.
The Site Here is available in over twenty countries and produces crypto tax reports for anyone buying, selling or trading many cryptos on many exchanges.
My friend in the states uses the Newbie version and my German friend uses the Trader version and both are very happy with it.
As neither a Newbie, or particularly fanatical trader these days, I use the Hodler version and am delighted with it.
The automatic calculation of tax due and reports on my profits and asset costs and trades makes this probably the best value and necessary tool I have in my ‘cypto toolkit’
There is a completely free version available to sign up to too but I haven’t used it myself as the low yearly cost, the extra detailed reports and the ability to download the extra reports available is, in my eyes, an absolute bargain and I like to keep my records on file for my accountant.
Another reason I personally didn’t go for the free version is in case an exchange folds and I’m left with records I can’t easily access, but that’s just me as I like to keep easily accessible copies and back-ups.
The site integrates with over 350 exchanges and plenty of wallets and you can either link to your exchange or upload the CSV file your exchange keeps for you in your site settings.
I love the site, it’s low-cost, reliable and the detailed level of reporting gives me an incredible level of clarity. The reports can be downloaded in a few formats and there’s more than enough detail to satisfy tax authorities and know exactly how you’re doing profit/loss/transaction wise.
Keeping detailed records is very important when holding or trading crypto or any assets and I’m very particular about it. Having a sensible and low-cost way of keeping a good handle on all of your trading information should be a priority in my opinion.
I’m pleased to recommend this site, why not take a look around and hopefully it may sort out any worries you have about calculating your taxes and keeping useful, detailed and relevant records.
Have a great day friends
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