How To Create Your First Tax Report With CryptoTrader.Tax
CryptoTrader.Tax is the leading tax reporting software for cryptocurrency investors. Today, thousands of bitcoin and cryptocurrency traders use the software to automatically handle their tax reporting needs. This guide walks through the 5 step process for creating your first tax report within CryptoTrader.Tax.
Step 1: Select all exchanges you have traded on
To create an accurate tax report, CryptoTrader.Tax needs your historical buys, sells, and other transaction data from every crypto exchange you have used. Without all of your transaction data from all years of transacting with cryptocurrency, the application will not have the necessary information needed to create reports.
Step 2: Import your historical data
In the example screen above, Coinbase, Binance, and Coinbase Pro are selected as the exchanges traded on. Here in step two, you need to import historical data from all years that you used these exchanges.
Depending on which exchange is selected, you will be able to upload your historical data by importing a CSV file that the specific exchange exports or by connecting your account with read-only access API. Read-only access allows CryptoTrader.Tax to read in your historical trades without being able to have any control over your account. This ensures your account stays safe.
*Note — not all exchanges have API support.
Step 3: Other Transactions
If you had any forms of cryptocurrency transactions that aren’t tracked in your exchange history (like mining income) you can add these types of transactions here into step 3. The application will automatically associate the fair market value of the specific cryptocurrency with the date and time that you provide for reporting purposes.
Other transactions that should be included within step 3 would be:
- Crypto received from air drops and/or forks
- Crypto received as a gift
- Crypto sent as a gift (as an outgoing transaction)
- Payments made in cryptocurrency (as an outgoing transaction)
You should not include exchange deposits and withdrawals in this step as these are automatically accounted for.
Step 4: Review your trades:
In step 4, you are able to review all of your imported trades. Your trades are organized by time-stamp, and here you can confirm that everything was imported correctly.
If you are missing data, the application will detect a “Warning Trade” and alert you here on step 4. Read through this help guide to understand what causes warning trades as well as how you can reconcile them.
Step 5: Run and view your reports
After reviewing all of your data, you will be able to run your reports. During this process, the application is doing all of the number crunching on your behalf as well as reconciling every trade you made with the associated USD value (or whatever value your home FIAT currency is) at the time of that trade.
Once your report is done running, you can select “View Report” and will be prompted to pay.
*Remember, you have unlimited edits to your reports, so you can always go back and update them even after running your reports without having to pay again.