2021-10-20 11:30 |
What is Crypto.com tax tool?
Crypto.com is a payment and cryptocurrency platform with a whole ecosystem of different products and services. It is constantly expanding its variety of services and of the most recent ones, established back in the spring of 2021, is their tax tool. This is still a relatively new feature on crypto.com, however it has already shown that it is pretty great actually.
The main purpose of Crypto.com tax tool is simply to reduce the complexity of filing cryptocurrency tax returns. Sounds pretty useful, isn’t it? Let’s jump into the details.
Crypto.com Tax Tool Visit Now How does it work?First of all, it is worth noting that crypto.com tax tool has a very user-friendly interface. Furthermore, this feature is completely free! It allows users to easily create well-organized and reliable crypto tax reports. These reports have a complete transaction history as well as full gains and losses information. Amazing, if you ask me.
Before tax reports are generated, users have a possibility to review them, just to check if everything seems fine to them.
What I found very interesting is that crypto.com tax tool’s actually partnered with experienced tax advisors in each country they currently support. These advisors ensure that the calculation logic complies with existing guidance and laws from country to country so that users do not make any tax-related illegal moves.
On crypto.com tax tool, users have an option to upload a CSV file or use API synchronization from supported major platforms (e.g. crypto.com app) so that they can show their crypto transaction records from different approved wallets and exchanges.
Since crypto.com tax tool has a complete integration with common wallets and exchanges, it might help the majority of cryptocurrency holders to get the job done quickly.
Supported countriesCurrently, crypto.com tax tool can be used in the following countries: USA, UK, Canada and Australia. Canada was the first supported country, followed by the US a few months later. As per the team around the feature, the plan is to expand to even more countries in the future.
Crypto.com tax tool has country-specific tax calculation formulas. This is very important since crypto is treated sometimes differently from country to country. For example in Canada it is treated as a commodity, and in the US as property.
Supported wallets & exchangesCrypto.com tax tool currently supports some of the most popular exchanges and wallets. Here are the lists:
Supported Walles:
Crypto.com appBlockchain.com walletCoinomiExodusSupported exchanges:
Crypto.com ExchangeBinanceBinance USBitbuyBittrexBlockchain.com ExchangeChangelly ProCoinbaseCoinbase ProCoinJarCoinSpotFTXGeminiKrakenKuCoinShakepayI do think that crypto.com tax tool will expand these lists. For example, the Metamask wallet as well as the Math wallet should be added in the near future. These 2 wallets have over four million users between each other, respectively.
If you are using exchanges or wallets that are not on the supported list above, you can still follow the tool’s generic CSV format, fill it out manually so that you can get your tax calculation results.
PricingWe come to the point in the article where pricing should be explained and that’s probably the most interesting thing about crypto.com tax tool since as per their website, it is an “entirely free service”.
Crypto.com tax tool is actually widely considered as the first completely free crypto tax platform. They will calculate how much is your tax obligation at no cost, no matter how many transactions you have in the past years.
It remains to be seen if crypto.com will actually charge this in the future, like its main competitors Crypto tax trader, Koinly, Zenledger, TokenTax, Cointracking who charge their crypto tax calculation hundreds of dollars.
Read also:
Binance Tax Calculators – 3 Steps to Calculate Binance TaxesBest Coinbase Tax Calculator – How To Calculate Your Coinbase TaxesBitcoin Tax Free Countries – In These Countries You Pay 0% Tax On Your Bitcoin And Crypto Crypto.com Tax Tool Visit Now FAQs What Services Does Crypto.com Tax Provide?It is good sum up all the useful services available on crypto.com tax tool so that they are all in one place:
Option to upload a CSV file or use API synchronization from supported major platformsAutomatically generated crypto taxes based on the tax reports created by the tax toolPossibility for users to review the tax reports before they are generated Complete integration with common wallets and exchangesPartnership with experienced tax advisors who are specialists for crypto taxes in supported countries I only made a loss on cryptocurrencies, do I still have to file taxes?Yes, unfortunately if you only have losses by holding and trading your cryptocurrencies, you still have to make a report to the respective tax agency or service. In fact, it is in your best interest to report your losses since this can help you to reduce your crypto taxes in the future when you (hopefully) make profit.
How Does Tax Reporting Work?In most countries, you do not have to pay for taxes by simply just holding them in your cryptocurrency wallet. However, when you exchange them for flat money, this is when you have capital gain (or loss) and then you have to pay for taxes at that point.
Tax reporting is actually quite simple – you need to create a report of your crypto transaction history and send it to your respective tax agency and they will calculate how much you need to pay. Trying to avoid paying for crypto taxes is something we strongly advise against.
I have not done my crypto taxes since 2017. Do I have to pay for every financial year?Yes, of course you have to. Just upload transaction history from each year, and the process is completely the same as described above.
Do you get taxed using crypto.com?Well, it actually depends on what you did with your cryptocurrencies. If you just bought and hold them on crypto.com, then you will not be taxed just by doing that. But again, once you decide to exchange them to fiat money, this is where you become eligible for taxes and where crypto.com tax tool can be handy and help you.
The post Crypto.com Tax Tool Review [2022] – Free Tax Calculator by Crypto.com appeared first on CaptainAltcoin.
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