Cryptocurrency traders need to pay taxes for capital gain according to the latest regulations issued by the ATO (Australian Tax Office). The tax authority is planning to create a task force specifically for fighting crypto tax evasion.
However, the key issue is that most traders have no idea how to calculate and file their taxes on cryptocurrencies. Aside from tax experts who can handle your crypto tax returns, you can also do it yourself with a new online tool, CryptoTrader.Tax.
A Cryptocurrency Tax Calculator Anyone Can Use
The idea behind CrpytoTradet.Tax is simple: traders need a user-friendly online calculator that will prepare their tax return for cryptocurrency capital gains. The capital gain (or loss) is realised when a person exchanges, trades or uses crypto to buy products or services.
Thus, the gain/loss represents the difference between the value of the cryptocurrency in AUD at the moment of trading and the value at the moment of obtaining it. For the average person who holds crypto for a while and then trades it, this can be a problem. Also, it is even more complicated when the person holds different types of cryptocurrencies.
But CryptoTrader.Tax aims to help with that and make it simple, clear and accurate. The tax calculator developers have adapted it to consider the tax rules in Australia and thus help traders prepare their tax return correctly.
How Does the Crypto Tax Software Work?
According to CryptoTrader.Tax, the user only has to import their trading history into the cryptocurrency tax calculator. They can do it by:
- Connecting to one of the +20 exchanges supported by the software;
- Using the Generic Exchange template;
- Importing the CSV file with the list of transactions.
Then, with just one click, the cryptocurrency tax software generates the tax report. This report has the standard format required by ATO. The user can send it by mail, deliver it to their tax consultant or upload it into the tax filing software.
For David Kemmerer, the co-founder and CEO of CryptoTrader.Tax, the expansion to Australia is an
exciting development for the company.
With this expansion, Australian crypto users will easily be able to import their cryptocurrency trades and transactions into the platform. The software will automatically crunch capital gains and losses numbers and generate necessary tax documents, he said in a press release.
How Can Traders Access the Software?
If you want to try CryptoTrader.Tax, you can test how it works for free. This free evaluation includes:
- Importing trade history
- Importing crypto income
- Live chat support
- Capital gains report
- Reconciliation assistance
If you want to download your report, you will have to opt for one of the paid plans:
- Hobbyist for up to 100 trades – US$49 per year (around AU$70)
- Pro Trader for up to 2,500 trades – US$99 per year (around AU$140)
- High Volume Trader for over 2,500 trades – US$199 per year (around AU$283).
Aside from listing the report, the paid plans also offer unlimited report revisions. As for means of payment, CryptoTrader.Tax accepts Visa, MasterCard or American Express credit cards.
Tamara is a marketing and PR professional, enthusiastic about crypto, blockchain and technology in general. She’s the editor at Bitcoin Australia.