Tax Softwares

[Kaffiend]

With the end of the year drawing near and tax season on the horizon does anyone have a prefered tax software that they use such as Koinly, bitcoin.tax, accointing, etc....? This is my first tax year mining just wondering what everyone else uses and how they like it. So far Im leaning towards Koinly.

[Sarah Manter]

With the end of the year drawing near and tax season on the horizon does anyone have a prefered tax software that they use such as Koinly, bitcoin.tax, accointing, etc....? This is my first tax year mining just wondering what everyone else uses and how they like it. So far Im leaning towards Koinly.

Found this post buried in the products and services forum and moved it where we could see it. Anyone have any recommendations on this?

[cryptominingron]

I would find a competent Book-Keeper or Accountant in your area. You will also want to have an accurate account of your electric usage taxation and consumption. Also, noting any distribution service taxes that your utility company charges. Another item to note is the depreciation value of your equipment while mining can be written off as well, and the expense to maintain the equipment, your labor matters as well. If you're making more than $5,000.00 usd in the US, then you must file as a general income tax. A good accountant won't miss those details and save you a ton of extra money you will spend from your mined profits.

145 asics maintained
130 GPU's maintained

CryptoMiningRon

[unholyconfession]

i am in the same boat with this Pro Hashing does not have a API to be put into any software ie cryptotaxcalculator or Koinly it needs to be done manually. Which makes it very difficult to do. I enjoy PRo Hashing but if they dont have something like this and with the ATO being very aggressive on Crytpo tax then ill unfortunately will have to find a pool that is Tax friendly

[Kaffiend]

After a bit off messing round I figured out how to make a macro in apache open office word program. Now its just open the .csv file from prohashing, a couple clicks to run the macro and it makes the .csv useable for Koinly in seconds and ready for me to upload. Every tax software seems to want something a little different (like header name labels) but a new macro could be made for which ever one is chosen I suspect. I'm going to stick with koinly this year and hope that I made the right choice I guess.

[Guest]

would actually like to see it and make its work with crypto calculator

[Steve Sokolowski]

After a bit off messing round I figured out how to make a macro in apache open office word program. Now its just open the .csv file from prohashing, a couple clicks to run the macro and it makes the .csv useable for Koinly in seconds and ready for me to upload. Every tax software seems to want something a little different (like header name labels) but a new macro could be made for which ever one is chosen I suspect. I'm going to stick with koinly this year and hope that I made the right choice I guess.

I'm not familiar with this program. If someone is willing to provide an overview of the most popular tax software, Michael can create an export function for whichever software has the most users before the next tax season.

[Dje12487]

After a bit off messing round I figured out how to make a macro in apache open office word program. Now its just open the .csv file from prohashing, a couple clicks to run the macro and it makes the .csv useable for Koinly in seconds and ready for me to upload. Every tax software seems to want something a little different (like header name labels) but a new macro could be made for which ever one is chosen I suspect. I'm going to stick with koinly this year and hope that I made the right choice I guess.

I'm not familiar with this program. If someone is willing to provide an overview of the most popular tax software, Michael can create an export function for whichever software has the most users before the next tax season.

After a bit off messing round I figured out how to make a macro in apache open office word program. Now its just open the .csv file from prohashing, a couple clicks to run the macro and it makes the .csv useable for Koinly in seconds and ready for me to upload. Every tax software seems to want something a little different (like header name labels) but a new macro could be made for which ever one is chosen I suspect. I'm going to stick with koinly this year and hope that I made the right choice I guess.

I'm not familiar with this program. If someone is willing to provide an overview of the most popular tax software, Michael can create an export function for whichever software has the most users before the next tax season.

Zenledger is probably the most used. They just partnered with ledger so now it is integrated into ledger live.

[nate4488]

I think it would be very beneficial for prohashing to partner with one of more of the crypto tax service such a Koinly so that you could import your information. At the very least it would be nice to have the ability to export a csv file in the format that one or more of these services requires.

[Deerisland2021]

I am no way a CPA or advisor. I am trying to start a small business with my mining operations. I tried 2 free versions for Crypto tax. I believe I will need this for 2022 or 2023 tax season. I do not use a cold storage device or hardware wallet. I plan on holding for a year+ to reduce my taxes when I do sell, if I have a profit. I send payouts directly to my Kraken account/wallet. I also now send USD to my Bank account after becoming part of the trusted mining program. I have read the IRS definition for taxing mined coins. it seems too basic. The easy scenario is if I mine LTC from litecoinpool.org, the coin is mined and when threshold met it is sent - a single csv file covers the details for the events/transactions.

Sofware:
TaxBit - I was going to try this but it has no free trial. If you are an LLC/business they will let you sign up, but also tell you that you need CPA consultation at $250 for 30 minutes. That will tell you what you service you should purchase. I felt like that was backwards. Spend money - then spend more to determine my best fit and then potentially spend more if they suggest a bigger plan.

CoinTracker and Koinly - Free
Koinly: it seems to have the best free services and features. Kraken auto sync seems to have a few issues with API permissions. I did read here and elsewhere that a "csv" file can be edited for importing with some effort.

Cointracker: Free version very basic, Kraken auto sync works with ease. It updates my staking rewards regularly and notifies me via email of the transactions.

Scenarios:
What I do not understand are these 2 scenarios for reporting mining transactions. My thought is the USD scenario may be why I need the coin originally mined via merged mining and the price of it at conversion time to USD.

Does merged mining data need to be reported prior to LTC or USD conversion. If that is the case, then I cannot find an export feature on ProHashing. just a detailed view of each individual transaction.
-OR-
Once I receive the converted LTC is it tagged as a transaction when the payout to my wallet occurs. I am trying to figure out where the converted USD fits in to the tax for mining.

Conclusion:
If ProHashing could somehow get the details of the merged mining transactions to conversion, into an all-inclusive csv file that might complete the entire audit trail for tax purposes.
Again, just my thoughts an opinion. If anyone has any experience with reporting mined coins already, please add your comments about the level of detail you had to report, it could help the community out