Re: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies
Thank you Dario!
That worked and my gains now total my total account value. Thanks for the tip about the double transaction, I noticed it earlier and deleted it and saw it reappeared and was wondering what was going on.
I will be upgrading as this is a very needed product.
A few questions:
1. I am aggregating trades in my poloniex spreadsheet manually, because of the way they break up trades. I don't want to have to enter a million trades in my tax software at year end. Do you ignore the price column when importing?
2. Do the profit numbers on the tax return report equal the "realized gain" numbers we were discussing earlier? Or are they calculated slightly differently?
3. When calculating the profit numbers for the tax report, do you keep a database of the Bitcoin prices in USD(or of all altcoin prices), so that when we enter a trade, you simply look up the timestamp, find the USD price, and then calculate the purchase or sale price?
Thanks again.
That worked and my gains now total my total account value. Thanks for the tip about the double transaction, I noticed it earlier and deleted it and saw it reappeared and was wondering what was going on.
I will be upgrading as this is a very needed product.
A few questions:
1. I am aggregating trades in my poloniex spreadsheet manually, because of the way they break up trades. I don't want to have to enter a million trades in my tax software at year end. Do you ignore the price column when importing?
2. Do the profit numbers on the tax return report equal the "realized gain" numbers we were discussing earlier? Or are they calculated slightly differently?
3. When calculating the profit numbers for the tax report, do you keep a database of the Bitcoin prices in USD(or of all altcoin prices), so that when we enter a trade, you simply look up the timestamp, find the USD price, and then calculate the purchase or sale price?
Thanks again.
You're welcome
1) It depends on the exchange. If the exchange provides the buy amount and the sell amount (most exchanges incl. Polo do this), we ignore the "price" column, as it's just "sell amount / buy amount"
2) Using the FIFO method in the tax report tool, will result in exactly the same realized gain. It's the same calculation.
3) Yes. We are keeping the historical prices for over 4000 coins in our database.
For Coin/USD trades we do not need them (as we know the FIAT price), but for Altcoin trades like BTC/ETH a price database is inevitable.
Have a nice weekend,
Dario