How to use crypto tax services

• Tax Services as SaaS
• Different ways to import data
• Getting ahead of your crypto taxes
• What crypto tax services cost

With so much talk of prices going to the moon it can sometimes feel that crypto is a little removed from the real world, especially if you’re lucky enough to have seen your stack increase in value. One thing, however, that can bring you crashing back down to earth is the realisation that you may have to share your profits with the taxman. To help hodlers face their tax obligations are a growing number of online services, but how do crypto tax services work?

Please note that this article is not tax advice. Consult a qualified tax accountant/professional or contact your local tax authority for clarification of how rules on crypto taxation  may apply to you.

If you’re reading this article and getting a chill down your spine because you had no idea that profit you make from crypto might be taxable, read the previous article in our knowledge base section, a primer on crypto taxation. 

Each country will take a different approach to how they treat crypto from a tax perspective, and given that it is a relatively new asset, regulations are evolving. 

It might be that you live in a country that takes a progressive approach to crypto tax – like Portugal or Singapore – or that your crypto activities fall below thresholds for reporting. 

What is important is that you at least acquaint yourself with the appropriate rules for where you reside and understand the difference between personal taxation and what might be considered professional or business activities. 

Some important clarifications up front. This article is not tax advice, you should get that from relevant professionals and the tax authority where you live.

Once you’ve summoned the courage to understand your crypto tax commitments you may face a different apprehension – how the hell do you make sense of exchange transactions, wallet activities, airdrops, and staking proceeds in order to complete the tax form?

It doesn’t take much to rack up several hundred exchange transactions and if you’re actively using DEFI and or CEFI that adds another level of complexity. For many crypto enthusiasts the task of picking through rows of transactions is so daunting that they just stick their hand in the sand. Luckily help is at hand. 

Where there is a problem there is an opportunity, and a growing number of online crypto tax services have appeared to offer solutions. Here’s how they work.