BitcoinTaxes Review | UPDATED Nov. 2018

As cryptocurrency aficionados are already aware, Bitcoin transactions result in potential Bitcoin income, which is not tax-free. The IRS holds that Bitcoin should be regarded as property rather than currency, which further increases the difficulty of reporting your Bitcoin taxes accurately.

Bitcoin taxation is conducted in the same manner as with all capital assets, such as stocks, for example. Therefore, there is no "engraved" minimum threshold for Bitcoin transactions you must report. The BitcoinTaxes platform acts as a "transaction ledger," maintaining optimal functionality for each tax year. The company itself was founded by Denebrook Software LLC, a major presence on the US market since mid-2006.

BitcoinTaxes Ratings

OUR RATING
8.5/10
USER RATING
Quality Of Service
Privacy & Security
Overall Experience

bitcoinTaxes homepage

How BitcoinTaxes Works

Operating the BitcoinTaxes platform can be divided into three steps:

  • “License” creation – As with all online services, you’ll be prompted to create your personal account, aka license. This step differentiates between packages for individuals and packages for tax professionals and accountants. Note that the personal license is designed for a single user only.
  • Data import – With account setup out of the way, you’ll be able to import all of your Bitcoin/Altcoin transactions from the supported cryptocurrency exchanges, alongside any potential income, mined coins, and donations from your wallets. You can perform the importing process by uploading the required file or entering the API from your account.
  • Report inspection – Once the algorithm calculates your imported data, you will receive several reports, which you can later print as a PDF, attach as a statement to your tax return or directly import into tax software. The results will cover your capital gains report, detailing the cost basis, sale proceeds, and gain for every transaction; income report, with the calculation of all the mined values; donation report with cost basis for tips and gifts; closing report, stating your net profit /loss and cost basis going forward.

When it comes to importing trading data, the transaction tab on BitcoinTaxes supports the most popular exchanges, including Bitfinex, Bitstamp, Bittrex, BTC-e, Kraken Polonies, Virwox, and others. The Income tab can receive data from Core Wallet, BitPay, Coinbase, CEX.IO, and CSV and mining transactions for BTC, LTC, and DOGE by payout address. The Spending tab can import from Core Wallet, Blockchain.Info, Coinbase, and CSV.

Supported Coins
BitcoinLitecoinDogecoin

 

Supported Exchanges
Coinbase, Gemini, Circle, Bitstamp, BTC-e, Cryptsy, Bitfinex, Kraken, CaVirTex, CSV, Virwox and others

Supported Wallets
Core Wallet, BitPay, Coinbase, CEX.IO, and CSV

Features

The available features vary, depending on the plan you opt for. BitcoinTaxes, therefore, comes in two iterations. The Standard plan is designed for individuals with low transaction frequency while the Premium plan is made to meet your demands per tax year.

Let’s take a look at the highlights of the Standard package (free):

  • The ability to import income, spending, and mining data
  • The free package supports up to 100 transaction
  • Calculation of the capital gains with average or FIFO
  • Parallel calculations of HCFO, LIFO, and CCFO
  • Like-kind treatment available between coins
  • The platform supports Bitcoin and all Altcoins
  • Form 8949 data, TaxACT, and TurboTax

The Premium package comes with the price tag of 19.95$ per tax year. Compared with the Standard option, it allows for unlimited transactions and the view of potential transactions from blockchains.

bitcoinTaxes Features

BitcoinTaxes does a lot of things for you, basically automatizing the whole process of collecting the necessary data for your taxes. Having said that, it is crucial that you don’t confuse it for a tax preparation service. They will not report your capital gains to the IRS, meaning they “merely” provide a versatile tool to help you calculate your own taxes.

Privacy & Security

You can sign up for BitcoinTaxes with your Google account or with a simple e-mail address. If you’re concerned about your privacy (as you should always be), the provided e-mail doesn’t even have to the one you actually use. Of course, if you want to receive future website updates, you’ll have to provide your real email address.

bitcoinTaxes Privacy

As far as BitcoinTaxes is concerned, your e-mail is the only personal data they have access to. As we already said in this BitcoinTaxes review, they are not running a preparatory service for your taxes, so they won’t be able to inspect any of your imported data and final reports. If you decide to go Premium, you can pay anonymously with Bitcoin or via credit card. BitcoinTaxes utilizes Stripe card processor, which does a fraud check, but they won’t store any of the discovered data.

The company’s terms and conditions also include the privacy policy they must adhere to. The incorporated clauses state that the collected data will never be shared with third parties or anybody outside of the company. The policy also holds a “Canary clause,” meaning that there is no government information request currently being honored.

Bottom Line

BitcoinTaxes is one of the best and most comprehensive software platforms for calculating your taxes. We repeat once more that its purpose is not to deliver your data to the IRS but to help you in the process of preparing your taxes. It’ll do all the necessary calculations for you, no matter the scope of your transactions over the tax year in question.

The company, previously known as Bitcointaxes.info, was launched in early 2014 and has gone through numerous updates and feature enrichments from that time. Today, it supports the most popular exchanges and wallets, offers all the relevant data and reports for doing your taxes, and guarantees ultimate security in the process.


Pros

  • A multitude of useful features
  • Calculations for capital gains, mining, income, and spending
  • Support for Bitcoin and Altcoins
  • Multiple methods for cost basis
  • Multiple reports with exports to TaxACT, TurboTax
  • Generation of the form 8949 in PDF

Cons

  • Tabbed interface requires separate uploads of the same files for trading/spending
  • Only 100 transactions in the free version

User Reviews

  • Submitted By Johnathan Lewis on 06/19/2017
    Very handy little app and it saves me a ton of time.
    Rating
  • Submitted By Mary Wilson on 06/14/2017 
    I went premium cause I liked the site a lot and I burned through my 100 free sales in a second.
    Rating
  • Submitted By Brian Carter on 06/07/2017 
    Long term user here. It’s the cheapest and most helpful tax calculator you’ll ever see!
    Rating
  • Submitted By Eric Cooper on 05/27/2017
    The tab glitches get annoying at times so I hope they fix that.
    Rating

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BitcoinTaxes Review
Updated : 2018-11-14
Rating : 8.5/10