The CoinTracer is a Windows software for managing and evaluating private trading activities with bitcoins, litecoins and any other crypto currencies. The CoinTracer calculates the "realized profit" within a selected period according to almost arbitrary configurable procedures.
Attention: The software was created for a personal motivation, is in beta-stage, is provided free of charge and is certainly not free of errors. If you want to use them, then please check the generated reports and information carefully before doing anything legally or tax relevant! There can be no liability for any - especially financial - damages.
Realized profit ?!
The - possibly in USA, Germany and in other countries tax relevant - profit from trading in coins is not the simple formula "current value of my coins minus the purchase price". Rather, each "private sale", ie each sale of coins, the respective profit must be determined. Basically, it is quite simple: the proceeds of the sale, the purchase price of the coins and possibly other costs such. B. deducted fees. The remaining amount is the respective profit.
Unfortunately, the devil is in the detail here: How to determine the purchase price of the coins of a particular sales campaign, if you have made a variety of purchases and sales in different quantities best also on different trading platforms with any number of back-and-forth transfers? And how do you consider that sales proceeds of coins are tax-free after a one-year holding period ?! And how do I know as a taxpayer that I have stated everything correctly?
What does the CoinTracer do?
First of all, according to the current state (April 2019), apart from the requirement to apply the FiFo procedure in general, there is still no consensus on generally binding regulations to my knowledge. There are some sources of information and many more opinions. The situation itself is not clearer by CoinTracer - but the software offers a wide range of settings options, so you can choose flexibly, in which way the personal gain or loss should be calculated.
Very important: Concrete legal or tax issues, please discuss with the tax consultant of your trust!
The CoinTracer essentially provides an experimental profit / loss report that can provide a guide to determining the actual tax burden.
Manual
1 . Import trade data
After the first start of the CoinTracer logically no data is available yet:
2. Updating the dollar rates
Only necessary if you trade in dollars: the CoinTracer already contains all daily dollar exchange rates until the respective release date of the program. A simple click picks up current price information from the Bundesbank. Alternatively, you can download the CSV file with course information yourself from the Bundesbank website and import it using the import method shown above(URL: http://www.bundesbank.de/Navigation/DE/Statistiken/Aussenwirtschaft/Devisen_Euro_Referenzkurse_Goldpreise/Tabellen/tabellen_zeitreihenliste.html?id=21422).
3. Set the calculation methods for the profit / loss calculation
Now for the interesting part: In the second tab "Calculations" you can specify separately for each type of transaction which coins should be used for this purpose. The default setting is "FiFo" (first in, first out), but the program also allows other settings.
You can also determine whether you want to favor coins younger or older than one year for each trade type. If you do so, you have the option to apply different settings for coins over one year old than for coins less than a year old.
This is because, according to current circumstances, the sale of coins that have been in their own possession for more than a year is not considered a private sale transaction and is thus tax-free. Then it may make sense to make the setting for tax-free sellable coins so that there is the highest possible profit, while the setting for coins younger than a year is exactly the other way around (low profit = less taxable amount).
Finally, you can specify whether the respective transaction should only use coins that were also on the relevant platform at the time (= "Separated to Wallet"), or whether all available coins are available, regardless of the "location". , is to be accessed (= "wallet-comprehensive").
4. Perform the profit / loss calculation
After you have made the desired settings, click on "Calculate" and then can read off the calculated profit or loss.
5. Create the report
In the third tab "Report" you can now display the report. Select the period, determine whether each trade is listed individually or summarize calendar days, and also determine whether only tax-relevant trades are listed (default) or all trades and click "load report".
6. What else?
The software was created for a personal motivation, is in beta-stage, is provided free of charge and is certainly not free of errors! If you use them, then carefully check the generated reports and information before doing anything legally or tax relevant! There can be no liability for any - especially financial - damages.
And last but not least: the motivation for the further development of the software can be gladly received by donations! ;-)
My bitcoin address:1JGwqnSDt78KwcABCSPXDv8DtmL61HzaqY
Download link : https://github.com/Cointrracer/Cointracer