it's necessary but a not very welcome topic: taxes 😬
which tools are you using to prepare your tax reports?
my requirements:
- support of multiple wallets
- multiple chains (the usual EVM stuff: Ethereum, Polygon, Optimism, Arbitrum, Avalanche, BSC, Gnosis; for forthcoming years: zkSync, StarkNet,...)
- preferably compliant with German tax regulations
- import from CEXes
last year I did my report with Cointracking. had a look at it again and it seems too complicated or doesn't support all my requirements (maybe I just don't spot a feature...) 🤔
I think, I'll keep Cointracking this year. spent a few hours with it but had to upgrade to another tier. 🫤
some of the problems I've encountered are probably relevant to all tools.at first, Cointracking reported gains of about 10,000 EUR and displayed some 430 warnings. I know that I should be in the red, though. so I had a closer look.
if your tool allows, sort tokens by highest value. I quickly realized that there are scam tokens that displayed the same ticker symbol as legit ones. identify them, blacklist and delete them. Cointracking would re-import them with the next API call, so blacklisting is recommended to prevent this. it's beneficial if you know at least the basics of block explorers, btw.
Cointracking is displaying some correct ticker symbols but it chooses the wrong token nevertheless. for example, it displayed the OP ticker but it wasn't for Optimism but an older token. fortunately, Optimism is in its database. Optimism is OP3 now.
the tool identified a missing cost basis for some transactions. remember to add transaction from various on-/off-ramps like Transak, Mt Pelerin,... if you use them.
I did some more cleaning like blacklisting and deleting the Lens follower NFTs (one by one, because Cointracking doesn't support blacklisting of various contracts in one go 🤪).
I'm a good amount of EUR in the red now and there are 34 warnings left. I don't know how to deal with them yet. one of the major problems is DeFi. Will also have another look at bridging transactions (if I can identify them all).
happy tax filing!
p.s. things should go more smoothly in the future if I start making amendments regularly (ok, four months have passed already this year).
0today one of my favourite newsletters, Milkroad, has published a report on crypto tax software. and it's as hilarious as you might have guessed (and probably feared). they only made a few transactions and the differences are, well, striking. and that's only for the US...
milkroad.com/tax0Thank god that for non sophisticated investors we don't have crypto to crypto taxes in france (yet)
2there is only one well working app and its Cryptoworth, everything else is broken
0TAX MEANS CONTROL BACK TO GOVERNMENT ... WORLD WAR 3 - GOVERNMENT VS PEOPLE .... @stani.lens
2I have been using Koinly for my tax return for the last couple of years.
3there is only one well working app and its Cryptoworth, everything else is broken
0I tried pretty much all of them last year, and sadly there's no way around Cointracking atm. It's just by far the most used tool among tax advisors and accountants. There's a HUGE upfront cost of learning the tool and slowly learning to accept its terrible UX but once you learn to think like the tool, it gets a little better..
6For France and Belgium there is: waltio.co/
I haven't tested it personally because I don't cash out, but I only have good feedback, even if it's a bit expensive...
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