Option 1: Binance api key and read-only private key
Option 2: Manually enter transactions
After transactions have been entered, enter marital status and annual income to determine individual's tax bracket
Sample output of STG tax information, option to download into a CSV
Sample output of LTG from the same transaction history
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.
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:
- By providing your api key and read-only private key for Binance.
- 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
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) ?