Topic: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies - page 99. (Read 121677 times)

@Dario3000 and Kevin,
Feature Request:
Put cryptos that are pegged to fiat/real currencies in a category by themselves, or even include them in the "real" currencies category. Right now, CT says how much I have invested in cryptos and what my gain is. That seems a bit distorted because I have a fair amount in Tether (USDT) until this selloff blows itself out.

Obviously, this is not a high priority, but it would be nice.

Thanks,

Steve

One more thing, in case you are wondering if Robert Green knows his stuff. I noticed his email had a unique domain and so I went to their website:

https://www.greentradertax.com/

Doing taxes for traders is about all they do.

So, as I said in my original post, believing the urban myth that you don't have to report gains until you trade back into fiat is just that: An urban myth.

I think the theory behind the myth is that as long as you stay in cryptos, the IRS will never know what your gains are. That might be true and then again it might not. Of course all of this only applies to Americans as far as I know. People in other countries should check with a tax accountant. As they say on TV "Your mileage may vary." 

@Dario3000 That's totally awesome!

@sgjenks01:
I have created all imports (API and CSV) to detect the fee correctly.
Some exchanges are including the fee, so we can use those values.
Most of them do not include it, so our system adds or subtracts them automatically from the right value.
But when you are using your own CSV files or the Excel import, you would have to add them correctly if they are not already included.

@Dario,
My Ledger Nano S wallet reports the total amount with a note that says "Includes Fees of X currency". So the total amount spent is the amount to report.
But Bitshares reports the amount spent AND a transaction fee in BTS. To get the quantities right, I have to subtract the spend from the currency account and also subtract the fee from the BTS account. So, the total "spend" is not the total amount spent! Plus, they send the transaction to OpenLedger, who takes more fees out to transfer it to wherever you are sending the money. From what I can tell, that amount is not reported anywhere, so the fee is the difference from what left BitShares and what arrived at the destination.
I also have a ETH based wallet (Exodus) that you have to have ETH in the wallet to send any of the other coins anywhere, because it subtracts the amount sent from the account and the fee separately in ETH, which accounts for part of the spend for the transaction.
And I have OmniWallet, which is a BTC based wallet. You have to have BTC in the wallet to send any of the other coins from the wallet, because it deducts the quantity sent from that account and some BTC from the BTC account.
With Bittrex, the spent amount includes the commission and the commission is reported separately, but it is part of the "spent" amount, so it's like the Ledger Nano S in that regard.

So, basically, sometimes the fee is just a note to tell the user how much it cost to do the transaction and so the fee is included in the "spend". Other times the fee really is a fee in addition to the amount reported in the "spend", so the fee has to be reported as a "spend" as well. Then there is the case of Bitshares/OpenLedger which just shows a "disappearance" that is another fee.

Are you saying you have a way for CT to handle these different use cases?
 

@ebliever

Here is the question I sent to: Robert A. Green, CPA and writer for Forbes Magazine

Can you please clarify how you think trades among cryptocurrencies (e.g. Bitcoin to Litecoin and back) should be reported, if at all? If there was a gain on Bitcoin at the time I traded it for Litecoin, would that be a reportable event?

And here is the answer from: Robert A. Green, CPA and writer for Forbes Magazine

"All trades in crypto currency's are taxable as capital gains on intangible assets."

Haha, thanks a lot
I'm glad you and your wife like it.

Best regards,
Dario

just wanted to thank you for this great site!

It is free, and it works!

It allows my wife to see how we stand

I love this.

You need to check the "Take into account Deposits & Withdrawals" checkbox on the Short & Long page to add deposits to the list.

I have entered several mined transactions from 2011 in the form below, but the Tax-free coins and have Short & Long shows nothing long in 2017, why not?

Type: In | Buy: 1 | Cur: BTC | Exchange: Bitcoin-QT | Date: 2011-07-23 21:34:36

I've entered a lot of transactions using local time. I input them manually at the time of the trade, so it's not exact, but it's close. When you make this change, will it change any of the times that are already there?

Right now, yes.
But I will adjust the time zones very soon, so it will use your selected time zone.

Dario

@Dario & @Kevin,
I know you are working on this, but for now, when CT figures out the equivalent cost of a transaction (in BTC or USD), are you assuming the transaction time was GMT?

Thanks,

Steve

@ebliever This article: https://www.forbes.com/sites/greatspeculations/2017/02/21/if-you-traded-bitcoin-you-should-report-capital-gains-to-the-irs/#2ccc3eb9e3d8 seems like a good one to read if you are an American. The author doesn't specifically address if one were to trade say, from BTC to LTC and back to BTC, and those trades results in a gain of BTC, would that result in a taxable transaction... So, I wrote him and asked (he's a CPA). If he answers me, I will let you know what he says.

Hi @mela65,

thanks for letting us know about your opinion.
We hope you like what we do.

You are totally right, to be a consistent winner it is necessary to keep track of P/L in detail.
Our service offers this possibility.

thanks for your wishes, we really appreciate it. 

Best regards,
Keven

Dario,

Thank you for reply and addressing issue. I was concerned I misunderstood something so I'm relieved that it is an actual issue.

Allan

Very impressive and detail idea. Those who do not keep a profit and loss details, they always lose. I wish success to you and your project.

The gains report is calculated for your trades only.
That's why it's taken into account all your trades and trade fees.

But it's not calculating transactions fees at this moment.
I will add them soon.

That's why your data will result in a gain of $1 because according to your data, 0.01 DASH has a value of 1 USD:
A> Type: Trade   | Buy: 1 DASH   | Sell: 100 USD   | Fee:   | Comment: Bought 1 DASH from Exchange A
D> Type: Trade   | Buy: 100 USD   | Sell: .99 DASH   | Fee:   | Comment: Trade .99 DASH for 100 USD on Exchange B

I will try to add tx fees in the next 2-3 days to the gains report. This will solve tx fee offsets.

Dario

Do you have any information to the contrary for any country? So far as I know this is generally true (that capital gains are only calculated on conversion back to fiat), but I'm sure we'd all like to know of any exceptions.

I've heard this theory before (that only gains matter if they are back to fiat). This sounds like an urban legend about cryptocurrencies that is likely to get some folks in hot water with the taxing authorities. Before you decide to take this approach, you would be wise to consult a qualified tax adviser.