In order to do your cryptocurrency taxes, you first need to have a complete record of all the cryptocurrency transactions you initiated during the previous tax year. CoinTracking.info greatly simplifies the process of compiling this data.

Here’s everything you need to do to create a tax report with CoinTracking.info.

Step 1: Create an account

Go to CoinTracking.info and click the Login / Register button on the top right hand side of the screen. Then, create a username and type in a password and email address.

Step 2: Import your cryptocurrency trading data

The easiest way to import your trading data is by linking all your cryptocurrency exchange accounts to your CoinTracking.info account. (If the exchange you use doesn’t have a public API, you import a CSV file of your trading data instead.)

First, select the Enter Coins drop-down menu. Then, open Exchange Imports (API) and pick the exchange you want to link to CoinTracking.info.

Next, you’ll need to log into your cryptocurrency exchange account and create an API key. You’ll be able to find the option to create an API key in the settings menu of whatever exchange you use.

After you’ve finished creating the API key, copy and paste your API key and API private key (sometimes called an API secret) into the appropriate blanks.

After your first data import is complete, repeat the process if there are any other cryptocurrency exchanges or wallets that you need to add.

Step 3: Generate your crypto tax report

Once you’ve imported all your data, it’s time to generate your tax report.

Click Tax Report from the main menu, then click the red Open settings and create a new Tax Report button. You will see this:

The accounting method you use will determine the way that CoinTracking.info determines the cost basis of your cryptocurrency assets. The IRS accepts several different accounting methods. However, once you choose a method, you should stick with it. (If you’re having trouble deciding which method to use, schedule a free consultation with Founder’s CPA.)

The short term and long term tax rates you’ll use will depend on how much money you made during the last tax year. If you reside in the US, use the information provided below to select the appropriate tax rates:

Long term capital gains rates for 2018

Short term capital gains rates for 2018

Step 4 (Optional): Export your crypto tax report and generate IRS form 8949

The data contained in your CoinTracking.info crypto tax report can be exported to a number of different software programs, including TaxACT, TurboTax, Drake and others. You can also print out IRS form 8949, which is the form you need to submit with your tax return to report a capital gain or loss.

Curt Mastio
Post by Curt Mastio
Apr 3, 2024 2:10:38 PM
Curt Mastio started Founder’s CPA in 2017 and currently serves as the Managing Partner of the firm. After obtaining both his Bachelor’s and Master’s degrees in accounting from the University of Illinois in Urbana-Champaign Curt started his career in Big Four public accounting. Shortly thereafter Curt served as the Chief Financial Officer of Storage Squad began his stint as an Adjunct Instructor at Northwestern University’s Farley Center for Entrepreneurship and has been teaching Accounting & Finance to undergraduate students for 6+ years. In his current role Curt oversees strategy, operations, and business development at Founder’s CPA. Further, Curt has experience working directly with 200+ startups and small businesses providing accounting, tax, and outsourced CFO services. His industry expertise lies in the SaaS, Blockchain, Marketplace, and Fintech industries. He has served as a key advisor working directly with startups that range from pre-revenue to companies generating over $30 million dollars a year in revenue. Lastly, he serves a key role working directly with the firm’s clients that have collectively raised over $200 million in venture capital funding to date. Curt is also an active advisor, mentor, and investor in the startup ecosystem. He has facilitated numerous workshops, webinars, and presentations to incubators and other startup-centric organizations. He is also an active mentor for Techstars in both Chicago and Iowa. Outside of his daily professional duties Curt is actively involved with Beat the Streets Chicago and was a founding member of its Young Professionals Board. His efforts in both leadership and community involvement were recognized when he was awarded the Illinois CPA Society’s Outstanding Young Professional Leadership Award in 2020. He was also a panelist at their annual conference in 2022 where he spoke about his experiences starting and operating a public accounting firm. He maintains an active Certified Public Accountant designation that he obtained in 2014. Outside of work, Curt can be found spending time with his friends & family including his dog Rufus. His hobbies include golf, boating, cooking, reading, and attending sporting events & concerts.