HOW TO DO CRYPTOCURRENCY TAXES IN EASIEST WAY IN 2021

  
HOW TO DO CRYPTOCURRENCY TAXES IN EASIEST WAY IN 2021

How to do your cryptocurrency taxes or just what's the easiest way. In today's article, I want to share with you a step by step walkthrough of how to use crypto trader tax, which is tax software. I personally used them last year, I'll be using them this year, they are a partner of the channel. And no matter which platform, you use support for every cryptocurrency exchange, whether it's Coinbase binance, a plethora of others, even uniswap, and then, of course, you can download upload or it syncs directly with your TurboTax.

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HOW TO DO CRYPTOCURRENCY TAXES



INDEX-
  • Intro
  • Import Trading History (.csv file)
  • Import Trading History (thru API)
  • Import Uniswap Trade History
  • Mining/Income/Staking/Hardforks
  • Review Data/Create Report
  • Final Thoughts

 And let's jump in. By the way, specifically for you, This is the main page after we log in. Step number one, import trading history from exchanges. So the three exchanges we'll check out today, we will do Coinbase as one. We'll do Coinbase Pro. As another example, and then I do want to take you through uniswap.

Now any of the three walkthroughs we're doing today can be applied to any of these options on the list. But let's start with Coinbase, so you can see it asks us to upload a transaction history file from your exchange, actually, we can connect to the API from an exchange, or just upload the file. I'll show you both. Click to upload Coinbase transactions.

 It will be a dot CSV file like this right here, we'll click it, we will open it. and it will automatically import success 40 transactions have been imported. Looks good. Now how do I get that dot CSV file from Coinbase, or from any of these exchanges?

Well, something I like about crypto trader tax is that for every auction, they have a step by step guide to taking you through it. Read the Coinbase import guide.

So we're going to click it, if you didn't know how to access that file from Coinbase. They got pictures, they'll tell you exactly how to do it. You would download the report, and then just upload it right to crypto trader dot Tex.



Okay, let's keep going, Coinbase Pro. So for this example, I'm going to show you how to import your trading history by connecting your exchange account via a read-only API. So we could do it the same way. Let's do the API version.

This time, so we're going to have to input our API key API secret and an API passphrase again, there is a guide if you need to know how to find that information whether it's by Nance Coinbase whatever, they'll have the guide, you can click it, find it, and then upload it.

Okay, this is what mine looks like. Keep in mind, this is a dummy account so I'm not actually doing it myself, I'm using this as an example. once they input it once their input. Connect.

Yes, I like it to 75 transactions that have been imported successfully, just by connecting the API. And it should be noted that this is read-only access. So when crypto trader dot tax connects to exchange. This does not give access to private keys, nor any ability to move your transactions, you made on that exchange. Alright, so we did want them to. And let's go to uniswap, so we can import our trades from uniswap, just by plugging in our public eathereum address wallet address, at least the wallet, that you interacted with uniswap with, so this is probably your meta mask public eathereum address. Here's, again, not mine but an example of one. So a crypto trader is reading the Ethereum blockchain. specifically, all the transactions that were associated with that eathereum wallet address.

And here we are success for transactions that have been imported. Okay, step one complete. Moving on to step two other transactions. So this is where you'll add any other transaction that you made that wasn't on an exchange.

For example, if you got paid in Bitcoin, you can add it, or theorem, or Litecoin or whatever. If you're a miner, and you have mining rewards you can add these transactions here. Or, if you got a gift. You've been staking you add any other form of transaction. This one's pretty self-explanatory. Moving on to Step three, which is now that we've inputted, the data, or review it, this is every single thing. We just uploaded in chronological order, based on asset-based on type based on platform transaction ledger looks good. And finally, we generate our tax report.

So you can see right here, individual tax seasons are broken up. Obviously, we'll do the most current year. Start report.

Boom, success. Let's view it. Here's our tax report. As you can see, we can see all our short-term gains or long-term gains This is based on the information that we just filled out, as well as the audit trail.

So you have a complete report for yourself on exactly how this was broken down, you can keep these for your records. If you want, or just, you're going to go to download right here. And this is what I like. you can send it directly to your TurboTax if you use that app TurboTax online desktop version, whatever, or just print it out directly for your accountant or for the IRS directly.

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