Last Updated: March 20th, 2024|9 mins

CoinTracking: Your Top Choice for Crypto Taxes in the US

Press Release

CoinTracking is the most complete crypto tax tool in the market with 1.5 million users, helping US investors comply with all the changing requirements.

Why CoinTracking excels in crypto taxation

CoinTracking has been on the market since 2013, one of the first tax software specifically designed to help crypto investors across countries, including the US.

Since then, the crypto market has evolved a lot, but CoinTracking has consistently been the most complete tax software, given its existence since the inception of the crypto market!

US investors will find all the features they need to do their crypto taxes with CoinTracking, from importing crypto trades from hundreds of exchanges, blockchains and wallets, to generating the necessary tax reports.

But it doesn't end there! With advanced reporting capabilities, investors can easily track their crypto activities comprehensively, from portfolio management to tax obligations.

For investors pressed for time or dealing with complex trading scenarios, CoinTracking's Full-Service provides a hassle-free solution where a team of experts does their taxes for them.

The US crypto tax deadline is coming on April 15, and this is the time for investors to take care of their crypto taxes. But why?

Why should investors be concerned about crypto taxes?

The IRS taxes cryptocurrencies through various mechanisms, making its tax code one of the most comprehensive and complex frameworks for digital assets. As a result, investors must comply with these guidelines and fulfill their crypto tax obligations each tax season.

In 2014, the IRS issued its first guideline outlining how cryptocurrencies are treated from a tax point of view in the United States, categorizing them as commodities. This classification has significant implications for individuals engaging in crypto-related activities, from trading to
earning income.

Since then, the IRS has issued new guidelines and revised the tax code to adapt to emerging trends in the market, such as NFTs, staking, and DeFi. These updates aim to address the evolving landscape of digital assets while clarifying the most common questions raised by investors over the years.

Despite these efforts to clarify regulations, the US crypto tax code remains complex for investors due to the intricacies and "gray areas" inherent in specific crypto transactions, ranging from liquidity pools to Web3 protocols.

However, US citizens and investors have the responsibility to report their crypto taxes correctly to avoid fines and penalties. The most straightforward approach to compliance is to work with a
tax professional, ensuring correct filing through a hands-free process. Even in less complex tax situations, investors still need crypto tax software to track their trades, determine gains/losses
and income, and generate the right tax forms for digital assets.

However, to leverage these tools effectively, investors need to know what to track and what transactions are taxable events.

The US taxes various crypto transactions

The IRS applies capital gains tax rates to trading cryptocurrencies, with rates ranging from 0% to 37%, depending on the holding period of the initially held coin.

Investors trading any cryptocurrency for other cryptocurrencies, NFTs, or FIAT currency will be subject to capital gains tax.

If investors hold their initially purchased cryptocurrency for over 12 months before selling it for another asset or FIAT currency, they face a long-term capital gains tax rate, ranging from 0% to 20%, depending on personal factors (e.g., filing status).

On the other hand, if investors hold their cryptocurrencies for less than 12 months before selling them for FIAT, NFTs, or other cryptocurrencies, they are taxed at a short-term capital gains tax rate, ranging from 10% to 37%.

Trading NFTs is also subject to capital gains tax, following the same methodology. The same principle applies to trading DeFi tokens, or any tokens traded on decentralized exchanges, regardless of whether the trading occurs on centralized or decentralized platforms.

If investors engage in leveraged trading, such as Futures or Margin trading, they must also calculate their gains and losses, similar to spot trading.

On the income side, crypto investors can earn income through various transaction types, including staking rewards, crypto interest (in the form of new tokens), receiving new coins from hard forks, airdrops, receiving salaries in cryptocurrencies, receiving payments as freelancers/contractors in digital assets, selling NFTs or other digital art as creators, and more.

When investors receive crypto income, they must determine the Fair Market Value (in USD) of every batch of interest, rewards, or proceeds they receive at the time of receipt. Sometimes, due to the unique nature of certain coins received, such as through airdrops or hard forks, tracking the proper Fair Market Value of each batch of new coins can be challenging. However, once this data is available, investors need to record it.

In addition to keeping proper records of all crypto gains and income, investors must file specific forms to report their crypto taxes.

Investors trading cryptocurrencies/NFTs and realizing capital gains/losses must report them on Form 1040, Form 8949, and Schedule D. To file these forms, investors need to keep track of certain information on a frequent basis, including:

Dates of acquisition and sale of digital assets
Cost basis
Sales proceeds
Gains/losses on each crypto transaction
Split your gains/losses into long-term and short-term categories, etc

Investors earning any type of crypto income need to report the Fair Market Value (in USD) on their US Individual Income Tax Return (Form 1040). Investors need to add all their crypto income into their income from other activities (e.g., salaries). The tax rate will depend on the total income bracket that investors fall under and other personal factors (e.g., filing status).

To become fully compliant in the US, given all the requirements and challenges of maintaining proper records, investors need to resort to tools that streamline this process. Crypto tax software is the answer to navigating this landscape.

Crypto tax software empowers US investors to become compliant

Crypto tax tools like CoinTracking were specifically designed to meet the needs of US investors and simplify the process of filing their crypto taxes.

When evaluating crypto tax software, investors should pay attention to several factors, including:

1. Number of importers

This is a crucial feature of crypto tax software. Busy investors often trade on various crypto exchanges, decentralized protocols, Web3 gaming platforms, and blockchain networks. A top-tier crypto tax tool should support these avenues and enable investors to track their trades, gains, and income from different activities and sources.

CoinTracking supports over 300 importers, including the most popular exchanges, emerging blockchain networks, and wallets, making it the most comprehensive tax software available.

2. Supported transactions

Crypto tax software must allow investors to import various crypto trades beyond simple spot transactions. CoinTracking covers most transactions in crypto, including DeFi income, staking, NFTs, play-to-earn gaming income, and more.

3. Accounting methods

In the US, the IRS accepts specific accounting methods for calculating gains. Investors must use one of these methods consistently across tax years to accurately report their crypto taxes.

CoinTracking supports all the popular accounting methods approved in the US, including FIFO, LIFO, HIFO, LOFO, OPTI, and others.

4. Tax reports and filling integrations

Investors dealing with cryptocurrencies must address the "crypto question" on tax returns and file specific tax forms to report their gains/losses and income.

US investors should select crypto tax software that prefills all the necessary information in the forms, such as Form 8949.

CoinTracking supports the generation of the right crypto tax forms while integrating with popular filing platforms like TurboTax and Drake Software.

5. Advanced reporting features

Crypto tax software should offer more than just determining gains and generating tax reports.

CoinTracking can, for example, show investors which coins in their portfolio may be eligible for a long-term capital gains tax rate (a lower tax rate) based on the holding period of their coins. In the US, investors can take advantage of this benefit!

6. Value for money

Many crypto tax tools do not offer a free plan to investors with few trades. However, CoinTracking supports crypto enthusiasts with as few as ten trades and investors with thousands of transactions through convenient pricing plans. Premium plans (up to 3,500 trades) start at €9.99/month with CoinTracking.

7. Security

Security is paramount for a professional tax tool to truly help crypto investors.

Investors should pay attention to the permissions granted to these tax tools and how they handle their data.

For instance, CoinTracking recently received its ISO/IEC 27001 certification, reinforcing its commitment to data protection and security.

"In the US, crypto taxes can quickly become complex! We've addressed all the main challenges that investors face and designed a tool that is cost-effective, intuitive, and robust for the 2024 crypto tax season," remarked Dario Kachel, founder and CEO of CoinTracking.

Full-Service in the US: The hands-free solution for US crypto taxes

CoinTracking’s crypto tax tool, combined with the assistance of a crypto tax professional, offers a foolproof method for navigating this crypto tax season with ease.

CoinTracking Full-Service has helped thousands of US investors complete their crypto taxes through a completely hands-free process each tax season. CoinTracking experts and partner crypto tax firms review, validate, and adjust their transactions to ensure accurate tax reporting.

Investors can choose from a wide range of services under Full-Service, ranging from an initial onboarding call to a full account review. For those seeking clarification and quick fixes for their crypto tracking, premium support packages or 30-minute calls are available.

Investors requiring additional support in managing the volume and complexity of their trades can subscribe to more comprehensive packages, such as the Express Account Service or Account Reviews and Services. Additionally, our crypto tax partner in the US can handle investors’ complete crypto tax returns through the Crypto & US Tax Return Service.

About CoinTracking

CoinTracking is the leading cryptocurrency tax software and portfolio tracker, supporting over 1.5 million customers worldwide.

With CoinTracking, investors can import their crypto transactions, track their crypto gains/losses, generate tax reports, and much more.

Press contact:
Agnieszka Mojsiej
Marketing Manager, CoinTracking
[email protected]

Disclaimer: The publication of a paid press release on this page should not be viewed as an endorsement by the Coin Bureau or its affiliated entities. Readers should do their own research before investing funds in any company or service.

Key Takeaways

CoinTracking is a crypto tax tool that has been on the market since 2013, making it one of the first tax software options designed specifically to assist crypto investors, including those in the US. With 15 million users, CoinTracking is known for being the most comprehensive tax software available due to its long-standing presence in the market.
For US investors, CoinTracking offers a range of features to help them with their crypto taxes. This includes the ability to import crypto trades from hundreds of exchanges, blockchains, and wallets, as well as generate the necessary tax reports. The software also provides advanced reporting capabilities, allowing investors to comprehensively track their crypto activities, manage their portfolios, and fulfill their tax obligations.
CoinTracking recognizes that some investors may not have the time or expertise to handle their tax reporting themselves. As a solution, they offer their FullService option, where a team of experts will handle the tax filing process for investors, providing a hassle-free experience.
The article emphasizes the importance of investors being concerned about their crypto taxes. The IRS taxes cryptocurrencies through various mechanisms, making the US crypto tax code complex and comprehensive. It is crucial for investors to comply with these guidelines and fulfill their tax obligations each tax season to avoid fines and penalties.
The IRS initially categorized cryptocurrencies as commodities in 2014, and since then, they have issued new guidelines and revised the tax code to adapt to emerging trends in the market, such as NFTs, staking, and DeFi. Despite efforts to clarify regulations, the complexity of specific crypto transactions, from liquidity pools to Web3 protocols, adds to the challenges faced by investors in correctly reporting their crypto taxes.
To become compliant, investors should work with tax professionals and utilize crypto tax software. Crypto tax software streamlines the process by allowing investors to track their trades, calculate gains/losses, determine income, and generate the necessary tax forms for digital assets. CoinTracking is highlighted as a leading option in this regard.
The article explains the various types of crypto transactions that are subject to taxation in the US, including trading cryptocurrencies for other cryptocurrencies, NFTs, or fiat currency, as well as engaging in leveraged trading or earning income from activities such as staking rewards or receiving salaries in cryptocurrencies.
To accurately report their crypto taxes, investors must maintain proper records and file specific forms, such as Form 1040, Form 8949, and Schedule D. Crypto tax software such as CoinTracking can streamline this process by prefilling the necessary information in the forms and offering features like advanced reporting and integration with popular filing platforms like TurboTax and Drake Software.
The article emphasizes several factors that investors should consider when evaluating crypto tax software, including the number of importers supported, the types of transactions covered, the accounting methods available, the generation of tax reports and integration with filing platforms, advanced reporting features, value for money, and security. CoinTracking is highlighted as a software that meets these criteria, offering support for over 300 importers, covering various transaction types, supporting popular accounting methods, generating the right tax forms, providing advanced reporting features, offering cost-effective pricing plans, and prioritizing data protection and security with its ISO/IEC 27001 certification.
For those investors who prefer a hands-free approach, CoinTracking's FullService option is highlighted. This service involves CoinTracking experts and partner crypto tax firms reviewing, validating, and adjusting investors' transactions to ensure accurate tax reporting. Various levels of support are available within the FullService option, including onboarding calls, account reviews, premium support packages, and complete crypto tax return handling through the Crypto & US Tax Return Service.
The article concludes by highlighting CoinTracking's status as the leading cryptocurrency tax software and portfolio tracker, trusted by over 15 million customers worldwide. CoinTracking enables investors to import their crypto transactions, track their gains/losses, generate tax reports, and offers a range of services to assist with tax filing and compliance.
Overall, the article provides an extensive overview of why CoinTracking excels in crypto taxation and highlights the importance for US investors to be concerned about their crypto taxes. It emphasizes the complexities of the US crypto tax code and the need for investors to utilize tax professionals and crypto tax software to ensure compliance.

Editorial Team

The Coin Bureau Editorial Team are your dedicated guides through the dynamic world of cryptocurrency. With a passion for educating the masses on blockchain technology and a commitment to unbiased, shill-free content, we unravel the complexities of the industry through in-depth research. We aim to empower the crypto community with the knowledge needed to navigate the crypto landscape successfully and safely, equipping our community with the knowledge and understanding they need to navigate this new digital frontier.

CoinTracking Makes Crypto Taxes Easy With Full-Service In The US

Press Release

February 27th, 2024

CoinTracking Makes Crypto Taxes Easy With Full-Service In The US

In the article titled "Exploring the Frontier: The Top Crypto Narratives Shaping 2024," the author delves into the evolving crypto landscape, highlighting the importance of staying updated with the latest crypto narratives. The article aims to provide a comprehensive analysis of the top crypto narratives that will shape the year 2024. The article begins with an introduction that provides a brief overview of the crypto landscape in 2024 and emphasizes the significance of understanding these narratives for investors and enthusiasts. The author then presents a keyword research instruction, suggesting the use of SEO tools to identify high-conversion keywords, long-tail keywords, and related keywords to enhance topical relevance. The main content of the article is divided into several sections, each discussing a specific crypto narrative. The first narrative discussed is the "Restaking Revolution." The author explains the concept of restaking, which involves delegating economic security to a specialized security layer through liquid staking tokens. The impact of restaking on the crypto economy is also explored, highlighting how it lowers the barrier to entry for emerging layer 1 networks and incentivizes new participants. The next narrative is "BRC20s," which refers to tokens that bring enhanced interoperability to the Bitcoin blockchain. The author explains how BRC20 tokens inscribe JSON files onto individual satoshis, imbuing them with distinct properties and identities. The advantages and limitations of BRC20 tokens are discussed, as well as their potential future prospects in widening Bitcoin's use cases. Another narrative discussed is ERC 7621 tokens, a new token standard that enables the creation and management of on-chain multi-token asset portfolios and investment baskets. The author explains the features and innovations of the ERC 7621 standard, such as transferability and liquidity, and provides examples of notable projects utilizing this token standard. The article also explores ERC 404 tokens, another experimental token standard developed by Pandora Labs. ERC 404 tokens introduce the concept of semi-fungible tokens that combine the non-fungibility of NFTs with the liquidity of ERC20 tokens. The author explains the concept of ERC 404 tokens, highlighting their uniqueness and divisibility. The potential applications and risks of ERC 404 tokens are also discussed. The narrative of liquid staking tokens is then explored, which addresses the liquidity constraints of traditional staking models. The author explains how liquid staking allows participants to maintain liquidity while their assets are staked, enhancing operational efficiency and financial opportunities. The benefits, risks, and prominent projects in the liquid staking space are discussed. Data Availability Layer 1s are highlighted as the backbone of tomorrow's crypto, ensuring the accessibility and validity of transaction data in the consensus process. The article explores notable data availability projects such as Celestia, Polygon Avail, and EigenDA, discussing their significance in the blockchain ecosystem. The concept of ordinals is discussed as a new dimension in digital asset identification, introducing a unique mechanism for creating and identifying tokens. The applications and implications of ordinals in the blockchain space are explored, along with future trajectories for this concept. DePIN, which stands for Decentralized Personal Identification, is introduced as a movement that leverages blockchain technology to decentralize personal identification systems. The advantages of DePIN over traditional systems are discussed, along with the challenges and solutions in implementing this decentralized approach. Decentralized Science (DeSci) is presented as a movement that revolutionizes research and innovation by utilizing blockchain technology to foster open collaboration, transparency, and decentralized funding mechanisms. The role of DeSci in data sharing, research publishing, and funding is explained, and notable projects in the DeSci space, such as VitaDAO and Athena DAO, are highlighted. The Gamble-Fi narrative is explored, which merges gaming and finance in the crypto space. The concept of Gamble-Fi, its mechanics, ethical considerations, and future prospects are discussed. The article then discusses RWAs (Real-World Assets) tokenization, which involves converting ownership rights of physical assets into digital tokens on the blockchain. The benefits and risks of RWAs tokenization are explored, along with notable projects in the RWA sector, such as ONDO, Polymesh, and MANTRA. Lastly, the narrative of decentralized social platforms (SocialFi) is discussed, highlighting the benefits and challenges of decentralized social interactions. Emerging trends and key players in the SocialFi space are also explored. The conclusion of the article summarizes the key points discussed and emphasizes the importance of understanding these narratives for investors and enthusiasts. A call to action is provided, encouraging readers to delve deeper into each narrative by following specific projects or engaging in community discussions. Overall, the article provides a detailed and comprehensive analysis of the top crypto narratives shaping 2024. It offers insights into the concepts, advantages, limitations, and future prospects of each narrative, as well as notable projects and their impact on the crypto ecosystem. The article serves as a valuable resource for readers interested in understanding the evolving crypto landscape and its potential implications.

By Editorial Team