CryptoCurrency Profit/Loss Monitor for Poloniex
It’s tax time, and time to get a grip on reporting my digital currency holdings.
After exporting my trade history — I wanted to know how to calculate the profit and loss of all my trades on Poloniex, and was searching for a something like a spreadsheet that could calculate that for you… rather than trying to calculate my 1000’s of trades manually.
Is a formula for profit loss all you need for tax reporting?
No, there is more.
You can deduct the cost of your trading fees: once when you buy and once when you sell. The fees on every trade also need to be converted from your crypto to Fiat, on the exchange rate for that day, for tax reporting purposes.
After investigating details about You are required to keep records of all your bitcoin and digital currency trades.
Reporting your bitcoin on your taxes includes the initial cost, sale amount, profit or loss reporting and any trading fees. Losses can be written off, and profits are subject to potential capital gains taxes.
This gets very complicated, especially after buying and selling various positions in hundreds of digital currencies, as you must report the gains made for each individual trade, converted to your local fiat currency, on the prevailing exchange rate…
Frequently asked questions about Bitcoin and Taxes.
I bought some things with Bitcoins directly, do I owe taxes?
When doing my Taxes, do I have to report every thing I buy with Bitcoin?
In the US, The IRS are treating Bitcoin as property. Any gains made from the sale of personal property are subject to capital gains tax.
In Canada Tax Rules For Bitcoin Miners state:
Bitcoin mining is a taxable business, says CRA. Tax is payable on the fair market value of your inventory at the end of the year.
The Tax Implications of Barter Transactions
Q. Do tax rules apply when digital currency is used?
A. Canada Revenue Agency States: Yes. Where digital currency is used to pay for goods or services, the rules for barter transactions apply.
But Tax Reporting your bitcoin and cryptocurrency trading requires more than just an excel-sheet of the tradehistory.csv exported from Poloniex…
The Journey To Finding A Good Coin Tracking Tool
Necessity really is the spark that drives new learning. As I started compiling the resources and information about Tax Report Rules for Bitcoin in Canada, and realizing how much accounting was needed… the prospect of manually calculating all my digital currency trades seemed like almost an impossible task…
… and it occurred to me that tens of thousands of Poloniex Traders in Canada, the USA, and all international traders need this very same solution… (most of them either don’t realize it, or they are in denial about it) …and someone must have produced something that will take this raw data and create a useful report…
So I started searching for a spreadsheet that might help.
THEN — I Found CoinTracking!
CoinTracking calculates all your trades exact to the cent and prepares them automatically, so that they only have to be attached in the tax return.
Profit/Loss Portfolio Monitor and Tax Reporting Tool for over 4000 Digital Currencies.
Track and evaluate your Poloniex Trade Profits and Losses, and easily create a full reports you can attach to you Tax Return for Tax Declaration.
Canada CRA, United States IRS and more. Variable parameters for all countries.
- Capital Gains Report
- FIFO, LIFO, HIFO and LOFO calculation
- Prepared for accountants and tax office
This online cryptocurrency trade tracking and tax reporting software is available in many languages, and can adapt to the laws, financial statements and forms of different countries.
Join CoinTracking for free to check it out — track up to 200 trades for free — AND — get a nice 10% discount for all Account Upgrades.