Is There Any Free Tool for Crypto Tax Filing Prep?

virhlpool on 02/03/2022 - 02:42
Last edited 02/03/2022 - 09:37

Most of the websites (such as Koinly) that I came across charge fees starting from $49 to calculate capital gain/ loss and income numbers using the crypto transactions file downloaded from any exchange/ platform e.g. Swyftx, Binance, etc.

As an OzBargainer, I feel that it's a sad state of affair wherein you need to spend anywhere between $49 to $125 per year on an external tool just to derive the numbers required for crypto taxation, on top of the hefty fees paid to the exchanges for the transactions themselves. This expense becomes even more significant when one hasn't made any profit in the year in the first place. Strangely enough, Sharesight is a similar platform used for stocks but it doesn't work for crypto which means that you need to spend on different tools for stocks and crypto respectively.

Is anyone aware of any free website for calculation off around 100 transactions in a year (some provide free report but limited to only 25 transactions)? Thanks in advance for sharing your knowledge.

PS: I came across Crypto.com (which is free), but it doesn't support Swyftx's output file - haven't checked for the other common exchanges used in Aus.

Financial

Comments

  • rektrading on 02/03/2022 - 06:36
    +3

    The best free tool is a spreadsheet. Why pay for an inferior app when everything one needs can be DIY?

  • activ8newbs on 02/03/2022 - 06:55

    I use binance. Is there a way to download an extract of all my trades til date and at what price?

    I must've purchased hundreds of times in the past couple years but have never noted the dates and prices down.

    • dust on 02/03/2022 - 08:48

      Yes.

      • activ8newbs on 02/03/2022 - 11:28

        How? Can you please enlighten me?

  • ln28909 on 02/03/2022 - 07:58

    Think of it this way, a swap on ethereum regularly cost $100 usd anyway

  • randomusername2017 on 02/03/2022 - 08:35

    Wouldn't think cost would be an issue with the massive profits all crypto traders are raking in…🤔

    • rektrading on 02/03/2022 - 09:25

      Traders that aren't budget-conscious will miss out on profits by paying unnecessary Tx fees.

    • virhlpool on 02/03/2022 - 09:36
      +1

      Well.. if that was the case, no trader/ investor would incur losses. It doesn't work that way.

  • DemocracyManifest on 02/03/2022 - 09:33
    +2

    Lmao, and if you (profanity) up it will cost your more with an ATO bill. Not something to cheap out on

    • Jimothy Wongingtons on 02/03/2022 - 09:48

      This.

    • rektrading on 02/03/2022 - 09:53

      The tax office will ask the OP to fix the return. It's not the end of the world.

      • Roentgenium on 02/03/2022 - 10:00

        You probably won't get a penalty but the bill will be excessive

  • bobbified on 02/03/2022 - 09:38
    +1

    I feel that it's a sad state of affair wherein you need to spend anywhere between $49 to $125 per year on an external tool

    ha!! It's a 'sad state of affairs' when you have to pay for something that someone's spent their time on???
    (If it's that easy, why don't you do it yourself?)

    • virhlpool on 02/03/2022 - 09:40
      +1

      I didn't mean that, nor I said it is easy. I believe that the exchanges themselves should be able to output these numbers so you don't have to go to any third party tool. Think of a bank account - you do all transactions all year and at the end of the year it gives you interest statement which you then use for tax returns. You don't upload your transactions summary on some other platform in order to get the numbers you want.

  • Jimothy Wongingtons on 02/03/2022 - 09:50

    If it's any consolation 1) there are discount codes around usually after June 30 2) the costs of managing your financial affairs is a deductible?

  • Hvrd on 02/03/2022 - 10:37

    btc markets does a tax report

  • freefall101 on 02/03/2022 - 10:52
    +2

    There's no need to pay for Koinly, use the free version to calculate your capital gains/losses and plug that into your tax return. That's all you need to do, the ATO website is really useful on where to put that info into your return.

    That said, I'd weigh up how much you have in it. If you have 5-6 figures then do it properly, put together a spreadsheet to track all your transactions (or better yet, talk to an accountant). But if you're just playing around with a couple of grand then the gains/losses aren't going to be that big, grab the number Koinly spits out and use that.

    If you get it wrong, the ATO aren't going to come crashing down on you (unless you report something ridiculous, use some common sense). With the number of exchanges around the world the ATO will know you're trading but not exactly what your gains and losses are. It's not like with shares where they know if you don't report your dividends exactly right. They're pretty unlikely to audit you over the risk you're $100 out on your gains or losses.

  • babolat360 on 02/03/2022 - 21:44
    +1

    Anyone got a spreadsheet they are willing to share?

  • AlienC on 03/03/2022 - 18:21

    Anyone recommend a Sydney service that does tax services for crypto assets.

    Thinking might pay for a tax accountant this year if I decide to sell my crypto.

    Is it true if you don't sell you don't have to report it and you only report it once you sell it and convert it to aud.

    • virhlpool on 03/03/2022 - 19:05

      Well, it works like stocks. If you didn't sell during the financial year (i.e. no sell transactions at all) then obviously you haven't incurred any losses or made any profits during the year. You only make profit/ loss when you transact, not when you hold.

      Stocks are slightly different in a way that they sometimes earn dividends even if you didn't sell any stocks in a year and dividends are reported as 'income' vs sale proceeds as 'capital gain' (short term or long term, depending on how long you held).

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