Crypto Tax Accountant

[Deactivated] on 10/07/2021 - 01:59

Hi,

I've jumped the ship and dived into crypto this year. I explored all that the crypto world had to offer and made some 7000 trades in the last 6 months.

I have a very hard time sorting out all of the trades and stakes and imported all into Cointracking to make it a bit easier for an accountant.

My accountant knows about crypto, he's into it as well, however, I went a bit further than him and explored Defi, daps, staking, mining, etc. This is for my missus and I.
He has a hard time wrapping his head around all of it and how it all fits in.

I was wondering if anyone here can recommend a tax accountant that specialises and knows about the crypto space a whole lot more than your average tax accountant.

Also, do you know any good software for crypto? I think I've tried them all and settled on Cointracking as it is a good compromise between what it can do and what I can do after.

Financial Accounting Cryptocurrency

Comments

  • rektrading on 10/07/2021 - 02:09
    +2

    If you made a couple of millions then move to countries like Portugal, Hong Kong or El Salvador and pay little to no tax on digital assets.

    https://decrypt.co/43513/10-countries-that-dont-tax-bitcoin-…

    • Tiredman on 10/07/2021 - 08:25

      My biggest mistake really. Have a sibling in Singapore. Should've used his account to buy it. Now i am looking at a massive tax bill.

      • rektrading on 10/07/2021 - 08:48
        +1

        Singapore has smart leaders that encourage people to work smart and invest.

        In general, capital gains derived in Singapore are not taxable, hence not required to be declared as income in the tax returns. Singapore’s zero capital gains tax policy has the aim of encouraging more entrepreneurial activity such as setting up businesses and boosting capital investment inflow into the country.
        https://pwco.com.sg/guides/capital-gain-tax-singapore/

        • Tiredman on 10/07/2021 - 09:05

          They do have some incredibly qualified and intelligent ministers.

      • aoeueoa on 10/07/2021 - 15:15
        +2

        I'm pretty sure you'll still get taxed on gains made via singapore. The ATO is cracking down on that. It's not hard to follow some wallets around the web. when you ultimately transfer it back to FIAT/your aus bank, they'll wonder where it came from. Pay the tax man so you can spend in peace.

  • aoeueoa on 10/07/2021 - 07:34
    +1

    I went down this path recently and looked around at maybe a dozen across Australia based off recommendations on whirlpool reddit etc. Sent off 10 enquiries, got maybe 3 responses. 1 immediate response, 2 received after 2-3 weeks.

    Ultimately went with crypto cate. We did a call and they asked for my APIs, wallet addresses etc and then 2 weeks later they gave me a report on the total gains/loss taxable. Pretty smooth. I think it was $800 for mine and i had under 1000 trades. Not sure if yours will necessarily cost more, it might. They do automate a lot of the stuff exported into spreadsheets so t here may not be more man hours involved. they were very responsive on email and phone (via online booking thing).

    https://cryptocate.com.au/

    -
    I did buy a cointracker online service thing but it messed up a lot of data and didnt recognise a lot of trades. it gave me nothing useful. money kinda wasted sadly

    • [Deactivated] on 10/07/2021 - 10:19

      Thank you.

      I'll send them a message and see if I can use their services.

      • jschalky on 28/11/2022 - 17:55

        i am also looking at these guys. did you end up using them?

  • Jimothy Wongingtons on 10/07/2021 - 09:26
    +1

    Any feedback on https://cryptotaxcalculator.io/ ?

    My total gain was less than 1k but over probably minimum 100 trades. Some decent gains but then panic sold a whole bunch too. I suppose if I get an accountant and the fees are more than gain it sets me at net loss to be carried forward to next financial year?

    • kusama on 10/07/2021 - 09:57
      +1

      I'm thinking of using that. Here are some deals on 3 crypto tax return sites from Coinjar email

      CryptoTaxCalculator is giving new users a massive 40% discount when they enter the code COINJAR40 at checkout. But be quick as the deal expires on July 18. If you’re already a user, the code COINJAR_BUDDY will get you 20% off.

      CoinTracker is offering 10% off all its tax plans for new users when you sign up using this link: https://www.cointracker.io/?a=coinjar

      Koinly are offering new users 20% off all plans until the end of July. Sign-up using this link: https://koinly.io/?via=COINJ21

      • Jimothy Wongingtons on 10/07/2021 - 10:05

        Any reviews from oBargainers?

        • Frostay on 10/07/2021 - 10:52

          I've used both Koinly and Cryptotaxcalculator (CTC). CTC won easily for me. There were a few no-cost basis things for me (Binance's BNB auto-convert for dust amounts of alt), both otherwise it seemed pretty spot on. Koinly was a bit confused. Dealing with 9000 trades (botting).

          I did have one other problem with CTC dealing with USDT, but I realised the large negative number was due to taking trading fees into account.

          CTC is also Australian, which was nice. I recommend them. Koinly was nicer for day-to-day tracking though IMO.

          EDIT: Also, managing each transation is nice and easy!

      • [Deactivated] on 10/07/2021 - 10:17

        As I said, I tried most of the software and all are garbage. Koinly less than cointracker.

        • kusama on 10/07/2021 - 10:21

          Thanks, the expert chimed in and saved us

          • [Deactivated] on 10/07/2021 - 10:22

            @kusama: To give you a perspective, I've used Koinly on and off for the past 6 months with at least 20 hours actively trying to sort/manage and remap transactions.

            Cointracker doesn't even let you most of that. I tried several hours with no success.

            • kusama on 10/07/2021 - 10:25

              @[Deactivated]: I've tried to use Koinly and it's a mess with mine. I'm going to try CryptoTaxCalculator later this week to hopefully use 1 year subscription over 2 year if it works that way.

              This youtube channel has an interview with a Crypto Accountant - they mentioned CryptoTaxCalculator but I think they said Koinly for the majority
              https://www.youtube.com/watch?v=7RsUN_Wn-Ho

              • [Deactivated] on 10/07/2021 - 10:30

                @kusama: Koinly's major issue is that once you've imported via API, the transactions are locked. If this would be fixed, Koinly would have his the mark for me.

              • [Deactivated] on 28/11/2022 - 21:55

                @kusama: That's what I've done and worked fine.

                They've got a bug at the moment on their reporting which I raised and they are working to fix it. I'll keep using them.

    • Jimothy Wongingtons on 10/07/2021 - 12:45

      Anyone know if a year pass does all transactions on account eg from start of trading circa 2018, or only 1 financial year?

  • StinksGoDown on 10/07/2021 - 14:05

    It all depends on if your trades are on-exchange or off-exchange, whether your coins are KYCed or not. Privacy coins pose the biggest issue here, but for reasons I will not delve into the technical aspects of this as the ATO is not paying me.

    Staking can be deemed income instead of capital gains, depending on how you received it.

    Airdrops and Forks can be deemed income, even if you never actually physically downloaded the wallet.
    I can 100% guarantee everyone here in this forum will be incorrectly reporting their income because of the nature of forks and the value of those airdrops.

    How easy it is to do your taxes depends on if you followed the cypherpunks advice or not. See Privacy Coins issue above. Did you create new wallets each time you make a transfer? Are you using the best security practices? One day you will wake up and your coins are all gone, but then you still paid capital gains on them.

    If you use an automated service to calculate the capital gains; the same advice applies that you need to check all those 1,000+ transactions, because when you sign that document you are stating it is correct…

    • aoeueoa on 10/07/2021 - 15:14

      thats why its worth it just to pay a crypto accountant to do the legwork and have some semi-confidence that they've gotten it right.

      • SBOB on 10/07/2021 - 18:53

        Doesn't cover you if they are wrong.
        Still your liability

        For the majority of crypto people playing in the thousands/tens of thousands range, being able to show your working and declaring gains/losses with some resemblance to reality will be more than enough for the ATO.

        If your a crypto millionaire then maybe you should be spending decent money on tax consulting but for most being able to summarise trades via something like bitcoin.tax etc will likely avoid any ato issues.

  • rektrading on 12/07/2021 - 07:03

    Who doesn't like the sun and beaches?

    As the name suggests, Plan B Passport offers crypto-rich clients a path to a second passport in their pick of seven, mostly tropical, tax-haven states, all of which are exempt from capital gains taxes on crypto holdings.

    Every year, Plan B Passport helps hundreds of people from countries like the U.S., the UK, Australia, and Canada obtain a second passport in one of seven countries: Saint Kitts and Nevis, Antigua and Barbuda, Dominica, Vanuatu, Grenada, Saint Lucia, and Portugal.
    https://www.cnbc.com/2021/07/11/plan-b-passport-tax-break-bi…

    • Tim183 on 23/09/2021 - 12:21
      +1

      The second you leave Australian tax residency you are triggering a CGT event on assets held at their market value on the date of departure.

      • rektrading on 23/09/2021 - 13:18

        Leaving a country to live in another requires planning.

        Liquidate tangible and intangible assets (and if applicable pay taxes) and make arrangements to send the rest before leaving the country. Depart the country empty-handed makes the trip so much lighter.

  • vee on 14/08/2021 - 11:38

    Have you managed to find an accountant? I am now into NFTs and need a good accountant to understand NFTS (purchasing using cash or other coins).

    • rektrading on 14/08/2021 - 14:44
      -1

      NTF isn't a cryptocurrency.

      People don't need an accountant to work out the PnL. Just take the sell price - cost price = profit/loss.

    • [Deactivated] on 14/08/2021 - 18:48

      Didn't find one yet. I've contacted a couple with no replies :(

    • [Deactivated] on 28/11/2022 - 21:56

      I did manage to find one, if you still need a referral, let me know.

Login or Join to leave a comment
Login Join