Inspiration

With the end of tax season just around the corner and the horrors of filing taxes fresh on our minds, we wanted to find a way to make the process of filing taxes for cryptocurrencies a little bit less horrible.

Enter BlockTax.

Long-term gains vs. short-term gains? No problem. You provide your transaction history and we'll do the rest!

What it does

BlockTax provides US tax payers with a way to estimate their capital gains/losses for the year when it comes to cryptocurrency. This is done using your transaction history, which you can provide for us in one of two ways:

  1. By providing your api key and read-only private key for Binance.
  2. By manually inputting transactions.

These transactions are then processed to determine an estimate for your capital short-term and long-term gains, and then outputted in a way that you can easily enter into an 8949, or download as a .csv file.

How we built it

JavaScript, Vue.js, lots of api calls, lots of fun algos.

Challenges we ran into

  • Many, many not-quite-right apis: no longer supported (we're looking at you, Bittrex), not enough stored history of crypto market values, etc.
  • The complexity of calculating crypto taxes, especially when a lot of different cryptocurrencies are involved and there are cases that need different bases.

Accomplishments that we're proud of

  • Getting the output to closely resemble the US tax return form that is used for capital gains/losses.

What we learned

  • Crypto taxes are hard.
  • How to calculate capital gains and losses based on an individual's complete transaction history.

What's next for Block Tax

  • Provide integration with multiple trading platforms (Poloniex, Kraken, Coinbase, etc.)
  • Allow for the upload of a .csv file of transactions from the user
  • Handling all edge cases of taxable transactions (being gifted cryptocurrency, paying for a good or service in cryptocurrency)
  • Automatically populate an 8949 (IRS Sales and Other Dispositions of Capital Assets Form) ?

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