Save money & time filing taxes on Bitcoin with Blockpit

FIRST STEPS WITH BLOCKPIT: CREATE A WIDGET AND DOWNLOAD YOUR TAX REPORT

The end of the year is approaching — and with it the end of the 2018 tax period. It is no longer a secret that profits from cryptocurrencies are taxable. But many traders do not think about the fact that an optimized calculation of their tax base is only possible if they can present a complete documentation of all transactions. We’ll show you how to use Blockpit to document trades and create tax reports to keep track of your portfolio and save both time and money.

Recording transactions is important not only for tax purposes, but also so that you can deposit your profits with banks. Banks are subject to strict anti money laundering regulations and therefore require proof of origin for larger sums. Documentation is therefore relevant for both hodlers and daytraders. In another blog post, our CEO Florian explains what else you should keep in mind if you want to invest in cryptocurrencies.

Once you have created a Blockpit account, you can start importing trades from your exchanges and wallets.

How do I create a widget?

Data is summarized in Blockpit as widgets and displayed clearly in the dashboard. It is advisable to create a separate widget for each exchange or wallet. You can create additional widgets if you want to display certain transactions together. For example, these could be fees that are already included in the rate you pay at an exchange. If you calculate the fees and enter them as separate transactions, they are deducted from the tax base.

If you want to create a new widget, you can choose between “Exchange” and “Manual Input”. Under “Exchange” all exchanges are listed for which you can import data via API access or CSV upload. If you cannot find your desired exchange in the list, automatic import is not yet available for that exchange. In this case, you can instead create a manual widget in which you manually enter the transactions.

What does API and CSV mean?

APIs are interfaces provided by exchanges that allow Blockpit to import data. For example, if you create a widget for your trades on Binance, you will need an API key and an API password from Binance. This access data is necessary so that we can transfer your data from Binance to your Blockpit account. Of course, Blockpit only has read-access to your data. We cannot change anything in your transactions, the API only allows us to display the trades in your account.

You will find the key and password, usually referred to as API key and secret, in your account with the respective exchange. Our Help Center provides detailed instructions on how to get exchange keys and secrets from each available exchange. Currently we can import data from 12 exchanges via API:

The advantage of API widgets is that you can track your data almost in real-time at any time. Once you have created the widget, your transactions are automatically displayed. However, some exchanges do not offer an interface for automatic access, but it is possible to save a CSV file and upload it to Blockpit. Blockpit currently offers CSV import for Bitcoin.de, Bitpanda and Coinfinity. CSV files contain your trades as spreadsheet tables and can be read automatically by Blockpit. However, you have to upload a current file each time you want to update your widget.

We are working on the possibility to import data from all exchanges automatically. If you cannot find your desired exchange in the list, there is no CSV or API import available for that exchange. Please select “Manual Input” to enter transactions manually. For hot and cold wallets like the Ledger Nano S, Trezor, KeepKeys or MyEtherWallet you can create a manual widget and enter the data yourself. Blockpit will also be able to obtain data automatically from wallets in the future.

Once you have chosen a data source, all you have to do is name and save your new widget. Special cases such as airdrops, hard forks, gift and the like can also be easily documented using Blockpit. Detailed information can be found in our blog article on special cases.

How do I get a tax report?

After your Blockpit account is filled with data, you can create a tax report and download it as a PDF document. The tax report consists of all the transactions registered within your account. In addition, the time stamp, quantity, currency and fees for each transaction are noted. The report provides information on the realised gains and losses. As soon as all transactions are documented correctly, calculations are made and you can download your tax report.

Upon the first initialisation, the calculation of profits or losses can take up to twelve hours. This depends on what data we receive from the exchanges. Please be patient, we are already working to make the calculations faster.

You also have the option of using different calculation methods for the tax base. In Austria, provided that all transactions are fully documented, an “optimized” calculation is allowed, which can save a considerable percentage of taxes. Furthermore, it can make sense to realize losses in either in the old or new tax year — depending on when you can more efficiently deduct these losses from profits. Gains and losses from the same type of income, in this case from speculative transactions, can be offset within the same tax year.

Find out about all other functions of Blockpit in our Help Center. We are looking forward to your feedback and questions to support@blockpit.io.

For more information visit us on: https://blockpit.io

Or on our channels:
Telegram + Facebook + Twitter + LinkedIn +Reddit + Youtube

Originally published at blog.blockpit.io

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Stay up-to-date with Blockpit when it’s about taxation of your cryptocurrencies. Track your portfolio in real-time and get a personalized tax report.

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Blockpit.io

Blockpit.io

Stay up-to-date with Blockpit when it’s about taxation of your cryptocurrencies. Track your portfolio in real-time and get a personalized tax report.

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