Setting an account up on TaxBit is simple. We just need your name, email and a password. To get started calculating your taxes you will need to link your account to an exchange/wallet.
No. We only require read only access to your wallets and exchanges through their official API’s.
Please contact us for help on deleting your account.
Currently we only support customers in the US. We will be expanding to other countries soon.
TaxBit supports all currencies and converts it to the user’s native currency.
We support all the coins listed on any of our supported exchanges, as well as thousands of other coins.
Coinbase, Coinbase Pro (GDAX), Binance, Bittrex, Uphold.
TaxBit plans to integrate the following exchanges in February: Kraken, Gemini, Poloniex, Bitfinex, Cex.io, and KuCoin
We pull crypto pricing from Coinmarketcap and Cryptocompare.
No, you can optionally import your transactions through our CSV upload feature.
Not yet. We plan to release native mobile apps in the future. However currently our web app is fully responsive and works great on mobile devices.
Yes. Prior to 2018, most cryptocurrency users chose only to report cryptocurrency transactions that were classified as sales to fiat currency. Trades between different cryptocurrencies (i.e; trading Bitcoin for Ethereum) were often not reported, with traders claiming that such trades were “like-kind” exchanges. A like-kind exchange is a common tax deferral strategy, typically used in real estate, that delays the taxation on swaps of similar property until the property is ultimately converted to fiat. This strategy is not allowed for stocks and securities. The IRS has stated that cryptocurrency is treated as property for U.S. tax purposes.
As part of the 2018 tax reform, the IRS clarified that like-kind exchanges are only allowed for “real property,” or in other words, real estate. This clarified that cryptocurrency traders recognize a capital gain or loss each time that they trade cryptocurrency for other cryptocurrency, in addition to when they sell cryptocurrency for fiat. This new amendment essentially treats cryptocurrency like securities. To further eliminate any confusion, the IRS released a notice specific to holders of cryptocurrency that they must report every transaction, and failure to do so can result in penalties, interest, and criminal prosecution.
Aside from fear of the IRS, most cryptocurrency users who transacted in 2018 are actually incentivized to report their 2018 transactions. The IRS not only collects taxes in times when the market is hot, but they also provide relief during tough markets, such as the cryptocurrency market in 2018. If cryptocurrency users realized losses during 2018, they are eligible to recoup some or all of those losses now, or over time. Taxpayers are allowed to deduct losses up to $3,000 if married filing jointly, or $1,500 if single, in the year that the loss was incurred, and then they can also carry forward any losses above those limits into future tax years to offset future gains.
For example, if you are married and generated $10,000 in taxable losses in 2018, you will be able to claim a tax deduction of $3,000 this year, which will increase your tax refund. The excess $7,000 of losses can then be carried forward into 2019, and offset dollar for dollar against any gains during 2019 or subsequent years. By reporting your losses in 2018 you will increase your tax refund! Also, you will lock in the ability to offset future gains should your 2018 losses exceed the permitted loss deduction limits (we hope you did not lose more than $3,000 this year, but if you did, CARRY THEM FORWARD!)
TaxBit was founded by the perfect trio of CPAs, tax attorneys, and software developers who all graduated from the top programs in their respective fields. TaxBit is a leader, backed by VCs, in the cryptocurrency taxation space. TaxBit always has full-time in-house tax attorneys and CPA’s to ensure that user’s taxes are handled correctly.
Taxpayers are allowed to deduct losses up to $3,000 in the year that the loss was incurred, and then you can also carry forward any losses above those limits into future tax years to offset future gains. TaxBit produces the tax forms necessary to claim the capital loss deduction if users lost money on their cryptocurrency transactions. TaxBit produces the tax forms necessary to claim the capital loss deduction if users lost money on their cryptocurrency transactions.
No. Transferring cryptocurrency between exchanges or wallets does not constitute a taxable event. Capital gains and losses are measured by your “cost basis” (the value you paid for the cryptocurrency, and by the price you sold or traded the cryptocurrency for. If you don’t dispose of the cryptocurrency for fiat or another cryptocurrency then you don’t have a taxable event. For this reason users should ensure that they connect all of their exchanges. If users only held cryptocurrency in their wallet and did not dispose of it then it is not necessary to connect your hardware wallets. TaxBit accurately keeps track of your cost basis and tax liability for taxable transactions.
The United States distinguishes between long-term and short-term capital gains. If you hold a particular cryptocurrency for one year or less then they are considered short-term capital gains. Short-term capital gains are added to your income and taxed at your ordinary income tax rate.
If you held a particular cryptocurrency for more than one year then you are eligible for tax preferred long-term capital gains. In 2018 the capital gains tax rates are either 0%, 15% or 20% for assets held for more than a year. Capital gains tax rates on assets held for less than a year correspond to ordinary income tax brackets (10%, 12%, 22%, 24%, 32%, 35% or 37%).
For single filers you will pay 0% in long-term capital gains if your income is $0-$38,600, 15% if your income is $38,601-$425,800, and 20% if your income is $425,801 or more. For married filers filing jointly you will pay 0% if your income $0-$77,200, 15% if your income is $77,201-$479,000, and 20% if your income is $479,001 or more.
The difference between your capital gains and losses is called your “net capital gain.” if your losses exceed your gains, you can deduct the difference on your tax return, up to $3,000 per year ($1,500 if single). If you have net capital losses for the year that exceed the deductible amount then the IRS allows you to carry the excess into the next year, allowing you to deduct it on that year’s return.
TaxBit is integrated with many exchanges’ APIs and TaxBit is rapidly integrating new exchanges. “Read only” API’s allows users to connect their exchanges one time and all past and future transactions will automatically populate into TaxBit’s user interface and user’s can see a real-time view of their tax liability throughout the year.
If TaxBit does not yet offer API integrations with an exchange then user’s can download their transaction history from the exchange and import the transactions into TaxBit’s interface using the CSV import ability. This enables users to import their information from any source into TaxBit.
IRS Form 8949 (Sales and Other Dispositions of Capital Assets) lists all of your capital gains and losses and whether you incurred a net capital gain or loss. After you connect all of your exchanges to TaxBit you can export your complete IRS 8949 tax form. The form will automatically populate all of your transactions for the year that were taxable events.
If TaxBit is integrated with the exchange you bought the ICO from then it will automatically handle the transaction. However, often times ICOs are purchased from small or obscure sources. If this is the case you can upload your transactions from any source through CSV import. If you have your transaction history from where you bought it then you can import that information into a TaxBit through CSV. Otherwise you will have to remember how much you purchased the currency for. If the ICO is now worthless and disposed of then you should enter a sale price in the CSV document of $0. This will calculate the ICO as a complete loss.
No. TaxBit provides users the tools necessary to generate their own tax forms. User’s information is their own and TaxBit does not share user’s information with anyone for any reason other than to perform our services or when required by law.