Post: #1

Hey guys, just curious what if anything you guys are using to calculate your profits and losses as well as capital gains if you plan on paying taxes.

I've tried Cointracking, Cryptocompare, and Altpocket and have had problems with all of them not correctly tracking my cost basis. Wondering if there's a better solution.

As for capital gains the best site I've found thus far is Bitcoin.Tax, however I have a couple unrecognized deposits that are throwing off my numbers and also it doesn't look like they support Bittrex.

One last thing for any of you traders. I have a hard time wrapping my head around how to look at my profits do you try to factor in terms of Dollars or Bitcoins in terms of trying to see what you gained?

Post: #2

If you're having issues, it might be worth it to hire a CPA. Bitcoin.Tax has a list of qualified CPAs.

Cointracking is the GOAT, Bitcoin.Tax is the runner-up. If you go to a CPA, they will probably use one of these two softwares.

Re: tracking profits

You do it as dollars (because that's what you pay taxes on). Even if you buy and sell using BTC, your cost basis and sale price are measured in dollars.

Let's pretend you buy 10 LTC with 1 BTC when 1 BTC = $10k (round numbers for simplicity).

LTC appreciates vs. BTC and BTC appreciates vs. USD at the same time. You sell the 10 LTC for a total of 2 BTC when 1 BTC = $15k.

Cost basis: $10k
Revenue: $30k
Profits: $20k (this is what you pay taxes on)

Cointracking & Bitcoin.tax do all of this for you.