CrypTax is an application to assist in tax filings to the IRS for cryptocurrency transactions AND Ethereum transactions.
CrypTax takes all your cryptocurrency trade related data (trades, deposits, withdrawals, airdrops, gifts, prizes, etc) and calculates the gain/loss on every transaction. CrypTax will also process all transactions your Ethereum address(es) conducted; this includes Decentralized Exchange (DEX) trades, liquidity providing, staking, and other Decentralized Finance (DeFi) activities.
Here is the official IRS guidance on cryptocurrency tax treatment for the 2020 tax season.
CrypTax makes RESTful API calls to exchanges to get price history, your computer must be connected to the internet for CrypTax to function correctly.
The only data sent/received over the internet by this application are to:
- Exchange APIs for Binance and Coinbase Pro to gather:
- a) Trading pair information
- b) Available currency symbols
- c) Daily price data
- Ethereum based APIs Etherscan and Ethplorer to gather all Ethereum transactions for your provided Ethereum address(es).
For the 2017 tax season, I manually calculated my cryptocurrency gains/losses in excel. Coming into the 2018 tax season, I had made substantially more cryptocurrency trades, and realized manually calculating my trades would be a very difficult and lengthy process. I tried a few online cryptocurrency tax calculators, but kept getting errors.
I figured I had two options now:
- Figure out how to get one of the online tax calculators to work
- Create my own tax calculator
As you can see I ended up going with option 2.
For the 2020 Tax season, I have incorporated Ethereum transaction processing.