HOW TO
DO CRYPTOCURRENCY TAXES IN EASIEST WAY IN 2023
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 |
- 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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