Crypto Tax-Cryptocurrency Tax Calculation

Example

A user buys 1 BTC for $10,000 and later sells it for $15,000. Crypto Tax calculates the capital gain of $5,000, factoring in transaction fees and the specific holding period to determine if it's a short-term or long-term gain.

Scenario

This function is crucial during the tax filing season when users need to report their investment returns to tax authorities.

Example

If a user earns cryptocurrency through mining, Crypto Tax evaluates the fair market value of the mined coins at the time they were received. This value is considered taxable income.

Scenario

Useful for miners who need to keep detailed records of their mining rewards for tax purposes.

Example

Crypto Tax tracks losses that can be carried forward or back to offset future or past gains, respectively, optimizing a user's taxable income.

Scenario

Beneficial for traders who experience a net loss in one tax year and can use this loss to reduce taxable gains in subsequent or previous years.

Example

Crypto Tax identifies opportunities where selling assets at a loss could be beneficial to reduce the overall tax liability. It calculates the optimal time and amount to sell to maximize tax savings.

Scenario

Especially advantageous at the end of the fiscal year when users seek to minimize their taxes through strategic sales.