/biz/ - Business & Finance

>>8784972
*December 31st

help biz

>>8784972
I used bitcoin tax. It doesnt take long. I also have an accountant who actually does the filing. I just gave him the report i printed from bitcointax. Had to pay around 35k.

Move to the netherlands.
No tax.
Thank fucking god.

>>8785327
but will bitcoin tax tell me what I owe on the whole thing in the form of a single number? Or do I still need an accountant to parse whatever scribe they produce?

Bitcoin tax does everything for u. You just have to figure out where to input the info on TurboTax ect.

>>8785487
thanks

>>8785505
It’s honesrly simple as fuck. Idk why people pay for it.

>>8785400
Yeah bitcoin.tax was easy as fuck.

>>8784972
>2700 trades
Desperation is a helluva drug.

>>8785525
did you owe a lot?

I'm worried that if the software isn't pulling exact moment to moment BTC prices from the exchanges I was using, then the calculations may be slightly off. If their unfavorably off, multiplied by 3000 trades, then I could be royally boned

>>8785590
I've been at it for almost a year exactly. And only 500 or so were manual trades. I do a lot of market trades so one order gets broken into 5+ trades

>>8785607
*they're

>>8785607
It will show you each transaction date and btc price. You can try it free you enter a portion ofvtrades that doesnt exceedd trial number.

>>8785626
It deals with that. The only places i found issues were moving between exchsnges and wallets but the report will highlight those trades so you can adjust as needed. I was sceptical at first but i was finished in a couple hours. I had a cpuple thousand trades. Lots of market orders.

>>8785653
>>8785709
thanks anon. Why do you need to report moving coins between wallets and exchanges though?

>>8785729
If you move coins between exchanges it seemed to track it as long asd the number didnt change. But sometimes if it went to say a hardware wallet and then back to exchange things got a little tricky. Say you send 40eth to wallet but only 35eth back. If it cant match the transaction it will report the whole gain as cost basis zero instead of taking the price paid into account. This means it will say you owe more than what is true. Just make sure you look over everything. I found a couple of these issues but they were easy enough to resolve with calculator. Like i said it will mark discrepancies.

>>8784972

Taxes are easy.

bitcoin.tax. you can use API keys to import everything.

you can even do ether delta (if you want).
https://deltabalances.github.io/history.html
Put in your address and it exports a bitcoin.tax importable csv

The only issues you run into if you used sketchy exchanges that don't keep long records (liqui is the only one I've seen not be able to provide history). Otherwise you can scrap history and format into a csv. Personally, I'd only report fiat transactions, or transactions on bittrex (because they seem to want to be complaint). I wouldn't bother with anything you aren't IDed on...

Once its imported use the best accounting methods for each coin to minimize your gains. It doesn't matter you can cherry pick for each coin. Do not use like kind. It'll probably be accepted but its harder to do the form and its only deferred for one year anyway.

If you aren't doing like kind you can just import your data straight into turbotax or taxact.

>>8785824
sorry, my question was even more brainlet than that. Why does the software need withdrawal/deposit information to calculate taxes? It's not crypto -> crypto or crypto -> fiat. Why does moving from one wallet to another need to be reported? I assume it's not necessary for the software to do its job when its just going through csv files and or API

>>8785914

It doesn't need that data at all... tracking addresses is only if the IRS audits you and you want to be sure your accounting method takes into account the address the coins were in... If you are that deep into an audit you will probably have a CPA looking at your return anyway.

i did cointracking + cpa, less stressful and no confusion.

>>8785896
bitcoin.tax's marginal advantage over cointracking is that you can choose the method to calculate gains per coin (i.e. LIFO, FIFO, etc.). Everything else cointracking does several times better. I've paid for unlimited subscriptions for both services.

FYI the trade calculations on cointracking take seconds whereas the ones on bitcoin tax can take very long periods of time depending on the amt of trades you had ( i had ~12000)

>>8785896
>>8785943
thanks, anon. This was really helpful. What about estimated quarterly taxes, though? I've read that the IRS will sort of give you a free pass for the first year. But it's now April. Technically we should have already paid last month?

>>8785955
you just took the 8949 and gave it to a regular CPA?
>>8785977
I see cointracking has choice between LIFO and FIFO as well, but doesn't look like you can toggle between each coin. Do you think this would save any significant sum or money, or not worth bothering?

>>8786023
yeah i had a weird situation where i already e-filed just showing my withdrawals over purchases and then did a bit of research online and found that that's not likely going to cut it.

So i spoke with a CPA for how to file all this shit as an amendment and he printed out my trades and re-did my state & gov returns (ended up being 150 pages double sided for those 12k trades)

>>8786086
whoops, yeah i used cointracking to generate the 8949.

Between bitcoin tax and cointracking, just use cointracking unless you think you can save a significant margin on your gains. I certainly didn't see much difference for my trades though.

>>8786086
shit, how much did that cost? The cryptotax CPAs want roughly 2000$ for that many trades

>>8786023
Don't keep switching methods between coins anyway, or you'll get audited, you're supposed to be consistent.

>>8786106
think I'll start with cointracking. If the number is reasonable I'll stick with it. If not I'll do bitcoin.tax as well and take the lower figure. Thanks man

>>8786111
calculate them on your own. You know your trades better than them. They will literally use bitcoin.tax or cointracking.info for you and charge you by the hour if you don't do it yourself.

>>8786124
ah i didn't know that. lucky me.

>>8784972
dude...
use bitcoin tax, it costs like 29 bucks then export ur shit to a TXF file.
get turbo tax premier and do your return. takes 30 mins. when you get to the income/capital gains section import your txf file that you saved from bitcoin tax website with all your transactions that you imported from the exchanges you made trades on.
turbo tax premier will tell u how much you owe at the end. if you dont wanna cash out your crypto to pay taxes then just file and then call the irs and set up a payment plan. this is the brainlet proof step by step guide. not that hard.

also fuck using a CPA unless you know you prob owe a lot of cap gains. youre gonna have to shell out a lot

>>8786136
that's kinda why I made this thread. I was gonna pay them 1200 bucks but I was fairly sure I have to give them API keys for all exchanges. Which made me wonder wtf they're getting paid for that I can't do. Thought I was missing something. Nice to have a seal of approval I guess tho

>>8786176
seems like biz is having more success with bitcoin tax than plebbit. Every1 on there is complaining that it breaks down and gives wildly wrong figures with high trade volume

>>8786111
Coming from someone who has been using a cpa for years. That price is fair and could be worth it. When a cpa stamps your return it means something. Its a professional seal and the cpa is bound by ethical guidelines. It will seperate your return from someone who does there own paperwork. Also a good cpa can save you money on all kinds of things. I generally pay about 1500 a year in a lower cost city.

>>8786194
No i just gave him the report i printed out. You dont want to pay them to go through all those trades.

>>8786216
they are retarded

Step 1. Use bitcoin.tax Step 2. Export to a txf file Step 3. Get the CD/Download version of Turbotax and upload txf file (Do not use the online version, you can not upload txf's) Step 4. Profit

>>8786323
this guys got it

>>8784972
i threw everything into bitcoin.tax and then generated a tax form. Gave that to my cpa and that was that.

also had to pay taxes like a good goy but oh well. Didnt want (((them))) to come fuck me in the ass later

>>8786279
>>8786111

You probably need to worry more about finding someone who isn't fully booked at the end of the tax season if you do want a CPA.

(I'm also saying that I didn't pay *that* much for it after doing my own trade calculations)

>>8785985

Income from capital gains only has to be paid yearly.

>>8784972
Just pay the interest for late payment and wait it out. Better that than cashing out immediately.

>>8784972
So let me get this straight, you haven't even cashed out but you're paying taxes.
>implyign you're not an irs shill

>>8785985
the other anon is wrong, you need to pay estimated taxes if you owe them to avoid penalty, but it's not a free pass - people just generally don't fall into penalty territory their first year. I just paid $5k in estimated taxes for Q1 2018 (both state and federal) to avoid penalty, and I paid them Q3 and Q4 in 2017 (but I wouldn't have had a penalty in 2017 because it was the first year I blew past the limit).

so I have to calculate all my trades at the end of each quarter (you need to look up the dates on the IRS website) and then balance that with what taxes you already paid via a W-2 job or other estimated payments, then if it's over $1000 or some other limits, you need to pay to avoid penalties. both state and federal generally.

>>8786706
guess im fucked. Thinking I'll owe between 20-40k for last year. Might hire a CPA after all...