Tax season is months away, which is why you need to start preparing for it now. Leave everything to the last minute and you’ll only end up cursing your procrastination. Organize your cryptocurrency activity in advance and you’ll breeze through tax deadline day without so much as flinching. Despite maddeningly vague or unfair legislation, filing your crypto taxes is surprisingly simple thanks to an array of tools that make tracking and calculating your obligations a cinch.
Crypto Taxation Doesn’t Have to Be Testing
Whatever your thoughts on paying tax, the fact of the matter is that it’s an unavoidable obligation. Unless you’re fortunate enough to live in a country that doesn’t impose income tax (here’s looking at you Bermuda, Monaco, Bahamas, Andorra and the United Arab Emirates), come April, you’re going to have to pay your dues. There’s no getting around it, but that doesn’t mean you have to approach the close of the tax year with a sense of dread. With the right planning, you can automate much of the process, saving yourself no end of time, hassle and expense.
Accurately filing your crypto taxes calls for maintaining detailed records of all your transactions and trades that occur over the course of the year. As a result, most of the specialist tax software on the market also doubles as an excellent portfolio tracker. That’s right: even if you have no interest in paying tax, you can still derive value from a product that records all of your crypto gains (and losses), and presents them in an attractive package that can be viewed on desktop or mobile. The following tools provide all that plus a whole lot more.