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Use These Tools to Calculate Your Crypto Tax

Be sure to do your research and choose the crypto tax calculator that you think would best suit you

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People have come to realize that they can learn the fundamentals of this payment system and using a crypto Tax calculator to file and report their taxes. Pixabay

The current state of taxation on cryptocurrencies-

One of the biggest hurdles while trading in cryptocurrencies is the calculation of taxes also known as Crypto Tax of the investments and returns. Most people despise the idea of filing their regular taxes. The idea of filing taxes for cryptocurrencies is generally met with more frustration and annoyance.

Moreover, cryptocurrency tax rules vary with each country. Several countries have a severe lack of ground rules and regulations surrounding cryptocurrency taxation. Dealing with cryptocurrencies is undoubtedly much more difficult in such countries in comparison to those countries with set regulations. The general population’s confusion around cryptocurrencies is entirely understandable.

Despite this, people across the world are getting themselves involved with cryptocurrencies at varying degrees. People have come to realize that they can learn the fundamentals of this payment system and using a crypto tax calculator to file and report their taxes.

Tax
One of the biggest hurdles while trading in cryptocurrencies is the calculation of taxes also known as Crypto Tax of the investments and returns.

The need for a crypto tax calculator

A crypto tax calculator is an invaluable tool that automates and speeds up the process of calculating taxes and yields accurate results. Whether you are an enthusiastic amateur trader with a few bitcoins under your belt or you are a seasoned cryptocurrency day trader, the tools mentioned in this article are bound to help you.

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A crypto Tax calculator is an invaluable tool that automates and speeds up the process of calculating taxes and yields accurate results.

Since the inception of cryptocurrencies in 2009 spearheaded by Bitcoin, a significant number of quality crypto tax calculators have been come up to make the crypto taxpayer’s job easier. While there are countless crypto tax calculators, we will mention a few of them that you can choose from to take care of your crypto taxes.

Concern over risks that come with cryptocurrencies-

Given the volatility and complexity of cryptocurrencies, people have become apprehensive, albeit curious about the value and role of cryptocurrencies in the digital age. While most people understand the fact that cryptocurrencies are secure, they realize that they are also prone to loss and theft. No central authority or external influence can control cryptocurrency transactions. It is possible to trace transactions but impossible to track the accounts back to their respective real-world identities.

The top crypto tax calculators-

Koinly.io

Koinly is one of the most popular crypto tax calculators in recent times. It has its Headquarters in London. Owing to the sleek and intuitive UI, it is perfect for regular traders and amateur crypto enthusiasts alike.

Another point in Koinly’s favor is that a new user can start using it for free and pay when the final reports are to be generated. In addition to this, it officially supports the tax systems of over 100 countries, 33 exchanges, and six blockchains. It also has several notable features that include a portfolio tracker.

Koinly seems to have the edge over most crypto tax calculators as they develop their tax reports in partnership with audit consultants from KPMG. Hence, they are legally compliant. Their reports also support all the primary accounting methods, including the ACB (Average Cost Basis) and FIFO (First in First out) method.

CoinTracking

CoinTracking analyzes your transactions and generates real-time reports on various things like profit and loss, the value of your Bitcoins, realized and unrealized gains, and reports for taxes.

Cointracking seems to be an all-in-one solution for your cryptocurrency taxation and portfolio tracking requirements.

 It is also compatible with some third-party crypto tax calculators and software like TurboTax. Of course, this depends on the country out of which you are based.

Bitcoin.Tax

Bitcoin.Tax is known as one of the oldest crypto tax calculators. As a result, it is a highly trusted crypto tax calculator among long-time crypto investors and crypto enthusiasts.

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Bitcoin.Tax seems to suit old-school accountants owing to their not so clean interface and the presence of a large amount of text.

The downside to this crypto tax calculator is that it looks dated compared to its competitors like Koinly and Cointracking. Just like Cointracking, Bitcoin.Tax has also partnered with TurboTax to support the seamless importing of cryptocurrency tax data into mainstream income tax reports.Bitcoin.Tax seems to suit old-school accountants owing to their not so clean interface and the presence of a large amount of text.

It is likely to be the one for you if you are looking for a traditional crypto tax software.

BearTax

BearTax is similar to Coinbase due to its simple UI and design language.

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Like all other crypto Tax calculators mentioned, BearTax supports the important exchanges and cryptocurrencies. Like all other crypto tax calculators mentioned, BearTax supports the important exchanges and cryptocurrencies.

Their key selling points seem to be the diversity of features, options in pricing, and functionality.

Like all other crypto tax calculators mentioned, BearTax supports the important exchanges and cryptocurrencies. However, It should be said that BearTax could do very well with a few more intuitive features like a performance tracker.

Zenledger

Zenledger is another quality crypto tax calculator. Users can import cryptocurrency transactions and calculate their capital gains and crypto-related income.

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Zenledger is another quality crypto Tax calculator.

The transaction history is imported, following which the tool generates all the crypto tax-related entities such as capital gains, income, donations, closing reports, and profit and loss statements.

Conclusion-

As Blockchain technology continues to spread, we will witness the increase in the number of crypto tax calculators. However, a crypto trader must understand the fundamentals of cryptocurrencies to make the best use of crypto tax calculators. In order to take care of your crypto taxes seamlessly, you ought to spend some time searching for the crypto tax calculator that is right for you.

ALSO READ: How To be a Private Investigator in Lawrenceville, GA

Be sure to do your research and choose the crypto tax calculator that you think would best suit you. To do that, it is crucial that you fully understand what you want from a crypto tax calculator.

Next Story

Rob Booker’s Review of 2020

Twenty Twenty is a year that has opened up on the verge of considerable political turmoil

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2020
Twenty Twenty is a year that has opened up on the verge of considerable political turmoil creating a volatile market for investments, in particular, the Forex Trade. It is this turmoil and its impact on the value of three major currencies in the market that is the main focus of the Review for 2020, given by Rob Booker, recently.  Pixabay

 Updates and projections for the upcoming year feature all kinds of data based on the political and economic scenarios. Reviewing some of the projections and concerns raised in the latest video by Rob Booker, it is evident that in the forex trading market, several anomalies could tip the balance of the currency rate either way.    

Twenty Twenty is a year that has opened up on the verge of considerable political turmoil creating a volatile market for investments, in particular, the Forex Trade. It is this turmoil and its impact on the value of three major currencies in the market that is the main focus of the Review for 2020, given by Rob Booker, recently.  

According to Booker, the three major currencies that could behave unpredictably are the British Pound, the Canadian Dollar and the US Dollar. These three are the main currency pairs that attract investment. However, the profitability of investments will depend on the response of the market to the political instability and the turmoil that may or may not result as a result of three political and economic scenarios. 

The main events that will have an impact on the currency pairs USD/CAD and GBP/USD are the Non-Formal Payroll Report (NFP) that is coming out in the context of the instability that may arise in the US as a result of President Trump’s impeachment, the potential for a war between USA and Iran,  the Bank of Canada interest rates and Brexit. 

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With the start of the new year 2020, interest in business, currencies and how they will trade in the current year is the hot topic. Pixabay

As appropriately pointed out by Rob, the successful impeachment of the 45th President of the US by the House of Representatives has opened a trial in Senate for abuse of power and for blocking Congress, against Donald Trump. How the US economy reacts to this will become evident in the Non-Form Payroll Report (NFP), which will determine how the US Dollar trades in the Forex markets. 

A second politically explosive situation is the threatened war between Iran and the US. Motivated by the airstrikes on the Iraqi airport that killed a significant Irani general, the tensions that emerged saw the Iranian head of state promising vengeance against the US. If this situation escalates, then it is evident, it would influence the value of the US dollar.   

The second event, Rob, points out as key indicators of future investments is the interest rate set by the Bank of Canada. As these interest rates will determine how much money will flow freely in the market in the current scenario.  

In this context, Rob Booker identified the trade between the currency pair USD/CAD  is poised at a critical stage. He uses the shoulder-head analysis technique to determine the bullish-to-bearish trend reversal for the USD/CAD currency pair. The currency pair are exhibiting a traditional technical pattern, where the currency exchange is set to move potentially either showing a bearish trend down to the 1.26 level or on the other hand, the pair could climb up to the 1.34 mark, which is a climb of 500 pips and which could potentially act as a great point of resistance. Here, Booker advises a wait and watch strategy as soon as the rate climbs up to the 1.32 mark and then making a decision about securing your investment.            

Finally, the third unpredictable situation that is set to create a volatile marketplace is Britain’s exit from the UK with no deal. If there is a smooth transition and confidence in the British pound remains unaffected,  then there will be no effect on the currency pair USD/GBP. However, if there is some trouble or an unprecedented reaction, to Brexit, then it will affect the value of the British Pound.   

The projection given by Rob Booker  – how you can learn more about on the Rob Booker Trading Podcast – using the head and shoulder pattern to identify the future trend for the currency pair USD/GBP for the specified period is that if there is a strong job report and there is political instability regarding the no-deal Brexit, then the value will come down to the 1.22 mark. The counterbalance figure for this currency pair in the event of a weak job report from NFP and there is no impact resulting from the British political scenario, then the pair could go up to 1.35, and it could go on increasing for some time. However, Booker advises that investors should wait and see how it pans out in the coming weeks as there is likely to be less trade based on these currency pairs. 

Analysing this information in comparison with projections made by two forex trading experts, we found that this analysis of the market for the two currency pairs USD/CAD and USD/GBP was generally held to be true and their projections of how the currencies would behave are quite similar. G10 Forex Index for 2020 predicts a bullish climb for USD/GBP to a 1.40 mark and a reversal mark at 1.29. For the USD/CAD pair targeting 1.30 as it continues its breakdown, and the risk is set at the 1.32 mark.   

 For a review of how the two currency pairs behaved in the first few weeks of January, we studied the data from a forex website. The 100forexbrokers.com highlighted the recent rise of the British Pound against the US Dollar by 10 points totalling it near 1.3100. However, they projected that “it may remain bearish because of the higher low printed in the recent upside move”. The price may also face a horizontal resistance around the 1.3144 and 1.3165 marks, and then the December 13, 2019 mark of 1.3514. Secondly, the support levels may help sustain its value with strong support around the 1.2919 and 1.2551 marks.  

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According to Booker, the three major currencies that could behave unpredictably in 2020 are the British Pound, the Canadian Dollar and the US Dollar. Pixabay

Presenting the data by 100forexbrokers.com in the analysis of the currency pair USD/CAD, the Forex market showed an increase in the price to more than 1.300. However, the website projects that this currency pair will also follow a bearish technical bias.  USD/CAD current price is set at 1.3022 and the resistance levels marked near the 1.3052. The major support levels have been identified at the 1.2950 and 1.2727 point. 

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There is a lot of material on the internet claiming to give authentic reviews of the trading trends and markets usually accompanied by the disclaimer that history is not a predictor of future trends and most advisors analysis is based on these back trends. In any event, the data speaks quite clearly for the projections and the patterns of behavior observed. Both currencies have seen little trade, as investors have generally chosen to wait and see what happens at the political end.