Step 1, is to select the tax year at the top left. You will want to select the tax year that you are filing taxes for. For example, if it is 2019 and you are filing taxes for 2018, you will want to choose tax year 2018. Step 2, is to go to the trading tab.
This tab is where you will do most of your work. You will import all of your trades, for buys and sells of crypto, and you can import them using two methods. First, on the left. is the manual import method. This is used mainly for importing single oneoff trades.
Then on the right, you have several supported exchanges. For this example, I am going to use the standard CSV option. This is good for any exchanges that provide a CSV file but are not currently supported by Bitcoin.Tax. To do so, you just choose a file, my file is in Documents, yours may be located somewhere else And you can see it imported 11 trades. Now if I scroll up, you will be able to see the 11 trades here at the top.
Step 3, the income tab is an optional step. Here you will add any income you received, through mining or any gifts that you received. Once again, you have two methods to import them, you can either do the manual method on the left, or you can use the several supported exchanges. Step 4, the spending tab, is an optional step as well. This is very similar to the income tab, and you will add any spending you did of crypto, for, lost or stolen, things you purchased, or gifts that you gave.
And again, there are two methods, you can use the manual import method on the left, or you can use the supported exchanges on the right. Step 5, is the opening tab, and is optional as well. Here you will add any crypto that you had from previous years. Or, if you had already entered crypto for previous years, it will appear here as well. So, for example, lets say I had bought 1 Ethereum on 12302017 for 1, 000 And click Add, now thats added and the software will use it for calculations going forward.
Step 6, is the calculate tab. Here is where you will see your capital gains or losses, and the tax methods that are available to you. The software defaults to FIFO in the US but you can change it if you would like and the green highlighted tax methods shows you what would be the least amount of tax you would have to pay In this case it is LIFO but it may not always be that. Step 7, is the reports and exports tab.
Here you can see any of your closing positions for crypto that you still currently hold. As well as a brief overview of your capital gains and losses. And you can also download tax files to use in different tax software, for example, TurboTax, there is a TXF file for them.
There is also a TaxACT specific file that you can download, as well as 8949 statements and forms The statement and form are very similar just different formats, so for this instance I will download the 8949 statement. Thats it, thats the 7 steps to using Bitcoin.Tax, and it really is that simple.p