Post by @carstenpoetter • Hey
it's necessary but a not very welcome topic: taxes 😬
which tools are you using to prepare your tax reports?
my requirements:
- support of multiple wallet
Comments
- today one of my favourite newsletters, Milkroad, has published a report on crypto tax software. and it's as hilarious as you might have guessed (and probably feared). they only made a few transactions and the differences are, well, striking. and that's only for the US...
https://milkroad.com/tax
- I think, I'll keep Cointracking this year. spent a few hours with it but had to upgrade to another tier. 🫤
some of the problems I've encountered are probably relevant to all tools.
at first, Cointracking reported gains of about 10,000 EUR and displayed some 430 warnings. I know that I should be in the red, though. so I had a closer look.
if your tool allows, sort tokens by highest value. I quickly realized that there are scam tokens that displayed the same ticker symbol as legit ones. identify them, blacklist and delete them. Cointracking would re-import them with the next API call, so blacklisting is recommended to prevent this. it's beneficial if you know at least the basics of block explorers, btw.
Cointracking is displaying some correct ticker symbols but it chooses the wrong token nevertheless. for example, it displayed the OP ticker but it wasn't for Optimism but an older token. fortunately, Optimism is in its database. Optimism is OP3 now.
the tool identified a missing cost basis for some transactions. remember to add transaction from various on-/off-ramps like Transak, Mt Pelerin,... if you use them.
I did some more cleaning like blacklisting and deleting the Lens follower NFTs (one by one, because Cointracking doesn't support blacklisting of various contracts in one go 🤪).
I'm a good amount of EUR in the red now and there are 34 warnings left. I don't know how to deal with them yet. one of the major problems is DeFi. Will also have another look at bridging transactions (if I can identify them all).
happy tax filing!
p.s. things should go more smoothly in the future if I start making amendments regularly (ok, four months have passed already this year).
- @thumbsup.lens what’s the tool you’ve using for tax?
- Crypto tax calculator is ggs
- Here in Switzerland there are some bad and some good things. How taxes are handled is definitely one of the good things: Mistakes in tax declaration have no consequences. Only tax fraud. You can do a sloppy tax declaration in 20 minutes and send it in 6 months late and a nice tax man will take care of it and correct it for you. So my advice for you would be to move to Switzerland and not care about any of this.
- took me one weekend last year .. with koinly. It’s far from perfect - especially when it comes to bridging and I’m not sure if it supports zksync and StarkNet now … and lens … ;-)
- there is only one well working app and its Cryptoworth, everything else is broken
- Curious about that too 👀
- Accointing by @glassnodeofficial.lens is the way
- I've tried to find a website or software that does it all, but no luck so far :/
- Excel
- I haven't really went into it that much (although I should)... However, I think the easiest way is to get controlled the CEX's numbers. Some time ago I read on "Berlin Expats" (Facebook group) that actually this is the only point of control were the government could tell you something, i.e., when you get incomes in €. Before that, if you're just trading coins, inventing NFTs out of nowhere, getting "airdrops" (whatever that might mean in the physical world), etc., then moving in the crypto space should not make any difference for tax purposes, just the profit should be the concern.
Hope that might help!
PS: the guy who wrote that post on Facebook made reference to some laws and stuff, so I bet the information is reliable, but as I said above, I haven't checked that much, also because my profits are super low...
- Sure! Taxes are a necessary but often dreaded topic, especially when it comes to reporting crypto transactions. It sounds like you have some specific requirements for your tax reporting tools, including support for multiple wallets and chains, compliance with German tax regulations, and import from CEXes. Consider checking out options like Koinly, CryptoTax, or Accointing to find the one that works best for you. In the end, staying compliant with regulations is important, so good luck with your search!
- I tried pretty much all of them last year, and sadly there's no way around Cointracking atm. It's just by far the most used tool among tax advisors and accountants. There's a HUGE upfront cost of learning the tool and slowly learning to accept its terrible UX but once you learn to think like the tool, it gets a little better..
- None of the tax programs are good yet, accountants not well versed in general, and there is no legal clarity by legislatures yet. Hopefully in a few years it will get better : )
- Crypto tax calculator is ggs.
- Thank god that for non sophisticated investors we don't have crypto to crypto taxes in france (yet)
- I have been using Koinly for my tax return for the last couple of years.
- TAX MEANS CONTROL BACK TO GOVERNMENT ... WORLD WAR 3 - GOVERNMENT VS PEOPLE .... @stani.lens
- Why not just keep crypto in ur wallet? No cash out then no tax problems...
If you really need to cash out, just find a Token Friendly country to go with P2P
- yes ，very necessary topic.
- For France and Belgium there is: https://waltio.co/
I haven't tested it personally because I don't cash out, but I only have good feedback, even if it's a bit expensive...
- Multi-chaining is indeed a hard requirement
- Multi-chaining is indeed a hard requirement.
- if you make minimum wage you aint need to pay taxes
- dont tell anyone but i dont pay taxes
- Why not just keep crypto
- national level
- good topic
- there is only Cryptoworth, world is broken
- good suggestion ! hope gas can be less .
- Helpful post
- Im using a leafblower because I didnt make enough to live off of this year because the gov’t is silencing anyone they believe to be capable of making any difference in opinion while also holding contempt for the people they’re supposed to be serving.
- what tool?
- ggs
- Such an important message! 🙏🏼💪🏼🌎
- good point! i will try the methods u mentioned
- I will also be using a rake, a shovel, and water to be growing my own damn food. A thank you, GOD literally please bless America.
- too complicated 😵😵😵
- So true! 👌
- T
- Your words are inspiring! 🌟
- Like during the testing phase, I don't feel too friendly.
- 💜
- 💗
- 😊