Since 2014, the IRS has required all cryptocurrency traders (and miners) to report and pay taxes on their income.
For the casual trader, deciding the worth of some Bitcoin transactions might not be a giant deal. However, frequent crypto traders and miners might wantto seem for a software solution to stay their tax returns accurate.
CryptoTrader.Tax is one amongst the primary bookkeeping companies to focus on crypto trading taxes. The service integrates with all the main cryptocurrency exchanges and with two tax software companies still. Here’s what traders have to realize this service.
If you’re someone who only sold one coin, on one exchange, one-time last year, you most likely don’t need software like CryptoTrader.Tax. In fact, CryptoTrader.Tax encompasses a great guide that shows readers a way to calculate crypto taxes on their own. you’ll be able to search the US Dollar value of that transaction and add it to a Schedule D on your own.
By contrast, someone who had dozens of trades, earned interest, and received some airdrops will face difficulties calculating their taxable burden by hand. this is often where CryptoTrader.Tax comes in.
First, the software allows you to attach to dozens of crypto exchanges and wallets.